From The President

WHEN THE BARN IS EMPTY

How to sell without crucial inventory.

I have spoken to many suppliers who feel it will get worse before it gets better. This is a good time to review other categories that you may have been thinking about, but avoiding in the short-term.

The best thing to sell is what’s in the barn. Selling things you don’t have or may not be able to get will leave you and your customers feeling, well, upset at the least. At this time, it should be no surprise that our industry is facing critical shortages of key products. When I say no surprise, I mean to say that by now you have figured out this is a problem that isn’t going away in the short-term. What do you sell when the barn is near empty? It’s always the same answer. Sell what you have in stock. That’s much harder to do than it sounds. Customers want what they want and changing that can be futile.

Review What You Have

In time of inventory shortages, it makes sense to monitor your inventory to the point that you and your team know what is available each day. Make sure to review what you have and decide how best to position it for sale each day. With so few head units available, you may want to take the time to review your top sellers and create a list of alternatives that may make sense to your customers. You should also be in close contact with your suppliers. Knowing what they have access to and when is critical to your success.

Understand the Pipeline

This is where having great relationships with your suppliers makes the difference. If you’re the type who just buys from whomever at the lowest price, you may be in for more of a wait than you planned. However, if you have spent the time and effort to cultivate great relationships with your suppliers then you will most likely be at the top of their list. Regardless of your relationship status, you need now more than ever to understand the issue at hand and take a crash course at how best to secure your inventory.

Redirect to What’s Available

Sounds simple, right? We all wish it were that simple. When a customer comes in

with a product in mind, they often decided on it using recommendations from others or online reviews. When they have already researched what they want to fulfill a specific need, it may be near impossible to get them to change their minds. For example, if they want CarPlay and you don’t have it, they will be left unfulfilled. However, if they were looking to upgrade their sound you may have a chance. Look for ways to add to their OEM head unit even if it is shortterm. In other words, you may want to plant the seed to add to their system in the future by replacing the head unit. Trying the same with a determined CarPlay buyer may be your only option. You should also redirect and find out what other upgrades may be on their wish list. Show them what you have to sell in other categories that may be of interest. You may find that you can have the sale today and plant the seed for tomorrow.

Plan for Further Shortages

This isn’t what anyone wants to hear. I have spoken to many suppliers who feel it will get worse before it gets better. This is a good time to review other categories that you may have been thinking about but avoiding in the short-term. If you’re not committed to selling ADAS (Advanced Driver Assistance Systems) this is a great time to jump in. Safety is selling very well right now because many people hitting the road for vacations as opposed to flying. Other hot categories such as motorcycle and powersports are great crossovers. If you’re in an area that is popular for boating, then the marine category is ready and waiting. Regardless of your current category status, now is the time to expand especially if those categories have better inventory positions. As an industry we have been blessed with increased consumer demand for what we sell and install. Make sure you are doing everything you can to capitalize on the opportunity.