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What are the vAuto Stocking Grade and Strategy Action

This article provides information about the vAuto Stocking Grades and Strategy Action covering the benefits and definitions.

One challenge dealers face today is that most listing providers have regulated engagement, meaning sources like Facebook Marketplace and Autotrader restrict the number of contacts an individual can connect with.  Therefore, if a dealer must ration their engagements, it is important to allocate time and effort to the listings that are likely to yield the highest return and one they are most likely to be competitive.


How can a dealer determine this?


The vAuto Stocking Grade and Strategy Action answer this question by providing insights to the inventory the dealer needs.  Seven attributes are used to calculate the Stocking Grade:

  • Demand - is the number of people in your area that are searching for this car.
  • Interest - is the average conversion rate from SRP to VDP for this vehicle in your area.
  • Volume -  is the number of units sold in your area recently. 45 days, 100 miles
  • Days supply - measures the current available supply of similarly configured vehicles and the rate at which such vehicles have been sold over the last 45 days. Vehicles with lower days supply values are in higher demand and, therefore, represent greater turn and gross profit potential than those with higher days supply values.
  • Profitability - is the difference between the average auction price of this car to the average list price of the car after adding in a fixed reconditioning/transportation fee.  100 miles
  • Availability - is the number of units available in auctions now.
  • Experience - measures of the success of your recent sales of this Make/Model.

Strategy Action

Helps a dealer define the ideal inventory by vehicle segments and price class with visibility to your live marke by setting a target days supply.  The default is 45 days.  Dale Pollak has been campaigning for dealers to stock a 30 day supply to be more agile for rapidly changing market conditions.


Benefit to the dealer

By focusing efforts on inventory that is likely to yield the highest ROI and fastest turn a dealer is likely to be more competitive, win more vehicles, have happier sellers/customers and be more efficient.