Fixed Ops Magazine - 2020 Vol17 03 - 26

F EAT U RE

RECOUP YOUR
TI
TL
E
RECON COSTS!
Recuperating Used Vehicle Reconditioning Costs
Through A Velocity-Driven Recon Operation

A

s new vehicle sales and profits steadily dimin-

the process of figuring out what mechanical and cos-

ish, dealerships are faced with increasing pres-

metic work is needed to get it to a retail-ready condi-

sure to not only reduce the cost of recondition-

tion is rather quick and easy. Even calculating the cost

ing but to get used vehicles Retail-Ready Faster. To

of repairs and cosmetic improvements is not a painful,

complicate the situation even more, used vehicle values

drawn out undertaking - most of the time.

continue to shrink in midst of the global pandemic in
conjunction with waves of off-lease vehicles arriving to

The two primary bottlenecks in the reconditioning pro-

dealership lots. To help with this, dealers should employ

cess are getting approvals for mechanical and cosmetic

sophisticated software tools to streamline their recon

work immediately to the right people so that decisions

process to control costs and begin the sales process

can be made instantaneously and then, getting this

of used vehicles while they are actively in the recon

work completed right the first time as fast as possible.

process rather than waiting for them to be retail-ready.

Previously, dealers have relied on information written

At ReconVelocity, we call this entire set of workflows a

on whiteboards or in shared Excel sheets to guestimate

"velocity-driven recon operation."

how many days it would take to get a vehicle retailready. However, these tools make it extremely difficult

Implementing velocity-driven recon processes includ-

to coordinate and manage the efforts of individuals

ing simultaneously identifying potential buyers of in-re-

across multiple dealership departments and vendors

con units offers the potential for dealers to recuperate

that perform recon work on- and off-site nor do they

used vehicle reconditioning costs through increased

let you pinpoint the exact physical location of a vehicle.

gross profits which historically have seeped through
inefficient recon operations and delayed sales. While
controlling recon costs and building efficient recon
workflows helps to increase the dealership's inventory
turn, beginning the sales process at acquisition adds
the fuel that maximizes turn velocity.

DON'T KEEP TRACK OF RECON TIME WITH
AN ERASABLE MARKER & DON'T DELAY
THE POTENTIAL SALE OF A VEHICLE
Fully minimizing recon costs and constraining vehicle
value erosion is possible through specialized recondi-

Think about this... Following the acquisition of a used

tioning software with vendor management capabilities.

vehicle, the dealership immediately decides if it is the

Likewise, data analyses functionality and algorithmic

type of vehicle they want to sell or if it needs to be

intelligence found in advanced software allows sales-

wholesaled. Once the decision is made to retail a unit,

people and BDC agents to pursue potential buyers for

26



Fixed Ops Magazine - 2020 Vol17 03

Table of Contents for the Digital Edition of Fixed Ops Magazine - 2020 Vol17 03

Fixed Ops Magazine - 2020 Vol17 03 - 1
Fixed Ops Magazine - 2020 Vol17 03 - 2
Fixed Ops Magazine - 2020 Vol17 03 - 3
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Fixed Ops Magazine - 2020 Vol17 03 - 26
Fixed Ops Magazine - 2020 Vol17 03 - 27
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Fixed Ops Magazine - 2020 Vol17 03 - 68
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