We talk every week with Motorcycle, PowerSports, Boat and RV dealers looking for new ways to manage inventory and grow profits. Many of them are new to auctions, and some get discouraged because the units do not sell for what their expectations are. The mindset needs to be a wholesale mindset.
Dealers consistently tell us they are looking to sell at auctions both to have a method of selling customer trade-ins that may not sell at their dealership and to move aged inventory. Auctions are a powerful tool for both buyers and sellers, and Manheim created several guides including an Auction Handbook and 'getting started' videos as part of a Dealer Resource Center to help dealers get comfortable with auctions.
Here are some tips on how to adopt a wholesale mindset when pricing your units to sell at auction:
- Use a pricing guide like NADA or Black Book
- Register for the Manheim market report, which gives a monthly snapshot of what units have sold for at auctions
- Visit Manheim PowerSearch to see what units are currently available for sale as well as the asking price for s
elect units
- Consider the vehicle's condition in setting the price - your auction will be able to provide a condition report to help you
Once the units are units are priced to sell, you will be able move your inventory quicker to have less aged inventory on your lot. As you sell more at auctions you'll also develop a following of buyers who know and trust you, helping you generate more profitable sales.
Angie Loving is the National Operations Manager, and Karl Mitchell is the National Dealer Manager, for Manheim Specialty Auctions