Lotlinx earlier this month announced a new Risk Report, offering a customized view of a dealer’s inventory carryover, markdown, and aged risk data.
This free report offers insights that help dealers optimize their inventory strategy with a weekly analysis of their store’s inventory data, and they can leverage this data to take action against their inventory risk before it impacts their bottom line, according to company officials.
“Our Risk Report goes beyond traditional data analysis to offer dealers real-time, AI-powered insights,” said Thomas Gage, chief strategy officer of Lotlinx.
Report Rewards
The Risk Report leverages Lotlinx’s proprietary Lexaca data, the largest inventory-specific data set with over 24 billion data points, using machine learning models that have been evolving for the past 10 years. With the automotive retail industry facing increased pressure to manage inventory turnover efficiently, this report equips retailers with a tool to gain a competitive advantage.
Leveraging sophisticated artificial intelligence, the Risk Report delivers a detailed breakdown of:
- Comprehensive Risk Summary: A clear and concise overview of carryover, markdown, and aging risk, allowing dealers to assess the health of their inventory at a glance.
- Carryover Analysis: An in-depth look at both new and used vehicle inventory, highlighting potential carryover risks that could affect profitability and lot turnover.
- Top VINs with the Highest Inventory Risk: A unique feature that pinpoints the specific VINs (Vehicle Identification Numbers) associated with the most significant risk, giving dealers the information they need to make data-driven decisions on pricing, markdowns, and sales strategies.
Use Case
Company officials note that customized, data-driven insight enables dealers to react swiftly and effectively to changes in their inventory. The report is designed to provide actionable intelligence on each vehicle on the lot, particularly older inventory that may need aggressive markdown strategies to move.
Using the Risk Report, Lotlinx was able to identify with one of its dealer customers that 71 percent of this dealer’s new vehicle inventory and 76 percent of its used vehicle inventory are currently at risk.
Additionally, the report found that the dealer’s risk inventory is reducing front-end gross profits by $1,445 on new inventory and $4,198 on used inventory. This risk exposure has contributed to 69% of the dealer’s price reductions on new inventory and 80 percent on used inventory.
Managing Inventory Better
A VIN-specific data company for dealership inventory management, the New Hampshire-based company’s platform provides automobile dealers and manufacturers with enhanced operational control over their retail business. Leveraging state-of-the-art real-time data and machine learning technology, Lotlinx provides a precision retailing solution that enables dealers to automatically adapt to market dynamics, mitigating inventory risk through VIN-specific strategies.
By leveraging advanced AI tools, the Risk Report enables retailers to stay ahead of the competition by identifying at-risk inventory early, implementing targeted markdowns, and optimizing vehicle sales. The detailed insights provided help auto dealers not only mitigate risk but also unlock greater revenue potential from strategic inventory management.
“With our report, dealers can better manage their inventory risk, fine-tune their markdown strategies, and optimize pricing for aged vehicles, ultimately driving profitability and reducing inefficiencies.” said Gage.
