There are others who do an acceptable job, and others who do a terrible job. There are many different schools of thought on how to manage an inventory. Some believe that relying on the manufacturer's local depot or port is best, as it reduces the dealer's inventory expenses. Others believe that having a great supply on the ground is best, as it demonstrates to the customer a lot of selection. Most dealers try to fall somewhere in between the two.

This article will not really dive into the merits of the two philosophies, but will demonstrate what can be done to put your dealership in the unique and enviable position of exclusivity. Manufacturers produce a certain number of vehicles based upon previous years’ sales history, as well as forecasted future sales. Once the number has been determined, those same factors are then used to determine which regions, zones, districts, areas and, ultimately, which dealers will be allocated this inventory. In fact, the allocations begin with the largest zones and regions being allocated their amounts, then districts until it works its way down to you and your local rep.  At that point you have somewhat limited options from which to choose. This is where you have the opportunity to become unique. For the most part, dealers only want what they want, based almost solely upon what they sold of that model the previous year, or past few months. It is the Manufacturer Rep's job to sell all of the vehicles to his dealer network. By seriously reviewing what total inventory is available within the district, and by past histories of your sales as well as the sales of all of the dealers in the same allocation market, you can determine roughly what the other dealers will "want" and what will be left. Don't wait for the rep to come to you, go to him and be first. This will give you the opportunity to be the first-come first-served dealer with your pick of all the remaining inventory.  You can also leave a standing order for additional vehicles, should the other dealers not take what you forecast them to take. It also provides you with an opportunity to take all of a particular model or at least the majority of that model.

This exclusivity can allow you to put on special promotions that the other dealers cannot compete with, and/or it gives you trade bait, as other dealers need the models you have.  You can get more of an allocation from the other dealers that you couldn't get through the manufacturer. In the following years, your history will indicate higher sales of the "good" inventory, and even more allocations will come your way. Inventory is a seemingly simple, yet incredibly complex task and those dealers who are creative and look well ahead are the ones who will end up with the best stock! Good luck and good ordering!