Most dealers have heard of Dave Smith Motors in Kellogg Idaho. In the mid 1990's this dealership was selling more Dodge trucks than anyone else in the nation despite its town's population of some 2400 people. By using a no haggle pricing strategy and taking advantage of Dodge's turn and earn policy, this small town dealership put itself on the map selling nearly 4,000 extended cab trucks by 1996.
While Smith found one way to use turn and earn to his advantage, his no haggle pricing strategy and undercutting of prices is not the only way to use it to increase your market share.
The best way to do this is communicating directly with your OEM representative to find out what vehicles they need to sell more of in your market.
Vehicles with lower travel rate can often present a problem to manufacturers as they can be harder to wholesale to dealers. Conversely, best sellers are always in demand from dealers which can lead to a limited availability.
By taking on more of the lower demand vehicles and finding a way to sell them in your market you can increase your turn rate, leading to a higher allocation of volume model lines and/or improving your negotiating position with your OEM to purchase more.
Selling more of these lower demand vehicles can not only increase your market share on its own, but also provide a direct path to more best sellers on your lot and showroom floor.