PORTLAND, Ore. – DealerMine Corporation (www.dealermine.com
), provider of the obsolescence management service for auto dealers, announces it helped Hendrick Honda of Charlotte, NC reduce its investment in idle parts inventory and save over $125,000 dollars on new parts purchases, increasing profit in the parts department and the dealership.
DealerMine helps car and truck dealerships convert their slow moving and excess parts inventory into working capital. Idle inventory can drain profits, especially in a dealership parts department. As parts approach 9 months in age, the odds of the part selling are only about 15%. After 12 months no sale, parts are considered obsolete. Parts Managers using DealerMine can quickly liquidate their idle parts and replace them with their faster selling parts, purchased at half the cost of ordering from the manufacturer, doubling their profit margins and maximizing opportunities for new sales.
Rob Thomas, Parts Manager for Hendrick Honda had a large parts inventory. He knew that it was time to begin liquidating some of the slow moving and excess stock. He had sold some stock in small quantities, but knew there was a more efficient process to move the inventory quickly, and in larger quantities.
Thomas had seen a ROI calculator on DealerMine’s website showing potential profit from selling slow moving parts and reinvesting the cash in fast moving parts at a discount through its service. Thomas entered some numbers into the ROI calculator and liked what he saw, so he gave DealerMine a call.
In just a couple of transactions, DealerMine helped Thomas liquidate approximately half of his excess inventory and reinvest the proceeds into his fast selling parts. “The whole crew at DealerMine has done an incredible job on both the buy side and the sell side of the table,” said Thomas. “They helped me minimize my obsolescence and purchase over $270,000 worth of my fast moving parts at half the cost. I will absolutely continue to do business with them and would recommend them to my colleagues.”
“Holding on to obsolescence never pays,” said Mark De Lucia, President of DealerMine. “The opportunity costs and holding costs can quietly kill your bottom line. We work to maximize our customers opportunities for sales and profits by turning their dust collectors into something that will create positive ROI for both the department and the dealer.”
“I was very impressed with the team’s interpersonal skills, customer service and follow through,” said Thomas. “DealerMine absolutely delivered on their promise and then some. They get results, without a doubt and it was easy, convenient and affordable.”
To run the numbers for your dealership, visit http://www.dealermine.com/RunTheNumbersCalc.aspx
About DealerMine Corporation
DealerMine provides a web-based service to help dealerships reduce their investment in slow-moving idle parts inventory. Since 2006, DealerMine has helped dealers liquidate millions of dollars in obsolescence and manage parts inventory more efficiently and profitably. DealerMine serves over 1,500 customers today and continually strives to provide exceptional, consistent and superior products and services that help automotive dealerships create and maintain a sustainable profit center. www.dealermine.com