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When you’ve used the same route for trade stock for years, it’s easy to assume it’s doing the job. Luscombe’s decided to test that assumption.
The franchised retailer wanted to understand whether its existing physical auction route was really delivering the best return from its part exchanges. So rather than simply switching channels, the team ran a direct comparison.
Luscombe’s split its trade stock down the middle, sending half to its existing physical auction route and listing half on Dealer Auction.
The results gave the team a clear answer. Vehicles listed on Dealer Auction sold faster and delivered stronger returns against CAP. The difference was enough to change the way Luscombe’s approached its trade stock altogether.
Turning part exchanges into a profit opportunity
With three franchises operating from one site, space is at a premium. Trade vehicles waiting to be collected for auction could quickly become a problem.
Dealer Auction gave Luscombe’s another option. Vehicles could be listed digitally and sold directly from site, putting them in front of a national network of trade buyers without waiting for transport to a physical auction.
But the impact wasn’t only financial. The outcome of the test encouraged Luscombe’s to update its whole part-exchange process.
When a customer first brings a vehicle in for appraisal, Luscombe’s captures the information needed for the Dealer Auction listing. Then, as soon as the part exchange comes back onto the forecourt, it’s listed in minutes, sold and off site in a matter of days.
As Managing Director Sam Luscombe explains:
“The parking space that that car arrives in […] is the same parking space the trader come and picks it up from.”
Selling directly from site also removes the additional journey to a physical auction, helping Luscombe’s get cash back into the business sooner while reducing exposure to transport costs at a time when diesel prices are at record highs.
What would happen if you tested your current route?
Today, every part exchange that comes into Luscombe’s is listed on Dealer Auction. That decision was based on a real-world test of which route was faster and more profitable.
And that’s perhaps the more interesting question for other franchised retailers. Not whether your current trade stock process works, but whether it could be working harder.
See the full Luscombe’s story