Every dealer or retailer has inventory they don’t want or need. We call this inventory either Obsolete or Overstock Inventory. A plow mount that fits a 2003 Honda ATV, or a short block for a 2005 Polaris Ranger, or maybe you purchased two or three dealerships as part of a buyout and ended up with its 40 years of its mistakes. No matter how those items got in the building, they are there – and they may even still be on the financial statements as an asset (ouch).
Obsolete Inventory is defined as inventory that has not been sold or used for an extended period of time and is not expected to be sold in the future.
Overstock Inventory is defined as inventory on hand that while it may have sold recently; the quantities on hand exceeds the number of items expected to be sold in the near future.
Anyone that has been a dealer for a while or bought someone that was a dealer for a while is sitting on thousands; or maybe millions, of dollars in inventory that is stagnant and costing them money to be moved, dusted off and hopefully counted during cycle counts.
Turn Product into Profit
By integrating with dealer management systems motorcycledealer.com is able to send nightly emails with recommendations on how the dealer can move unwanted or unneeded inventory.
- Identify what is obsolete/overstock: MotorcycleDealer.com does this by comparing dealer inventory with supplier price files to see if product is current, and with the dealer’s sales history to compare current stock levels with prior sales history. If the item is no longer listed in the price file – it is Obsolete. If the item quantity on hand exceeds expected sales going forward, then it is Overstock.
- Identify how to move the inventory: With its extensive knowledge of supplier return policies and dealer management systems MotorcycleDealer.com is able to compare obsolete and overstock inventory with the dealer’s sales history to figure out what the dealer can return; and if dealer cannot return then match the dealer having overstock with dealers that may have the proper return allowance.
- Make the match: Nightly programs running on the web server will identify potential dealer obsolete and overstock inventory, analyze potential sales or return partners and match sellers with buyers. (Works to cross level inventory within dealer groups as well).
MotorcycleDealer.com helps dealers “Turn Product into Profit”. For Parts inventory that means using our proprietary Parts Market-Maker and nightly reporting systems to provide dealers with ability to identify unwanted inventory, connect potential buyers and suggest potential pricing.
MotorcycleDealer.com (MCD) is an inventory listing website operated by MacGyver Solutions, Inc. (a Service Disabled Veteran Owned Small Business) located in Pinehurst, North Carolina. Dealers can turn Product into Profit by signing up for one of multiple listing levels on the site; reaching consumers, other dealers and OEMs alike. Back office reporting on aged inventory, parts and accessory obsolescence and dealer-to-dealer sales opportunities set MCD apart from all other listing sites. Contact Mike Jackson at 919-578-7246 or mikej@motorcycledealer.com for more information.
https://www.motorcycledealer.com/press/Moving%20Obsolete%20Parts%20and%20accessories.pdf
