We keep a retail pricing history for every car that has been in our system including both current and sold inventory. This allows you to see when you reduced each unit’s retail price and tells you what the previous asking price was.
Our most conservative recommended mark down strategy is a $1000 reduction on day 60. This is done in an effort to keep your inventory turning at a rate of 8 to 12 times per year. Some dealers mark their inventory down even faster, for example, day 30 or 45.
You may consider making more frequent nominal mark downs ($500) at day 30, day 45, day 60, day 75 and day 90 until the unit moves. Nevertheless, the first 30 days represents the most optimal time for you to make the most profit, so marking them down aggressively after day 30 is essential to your success. Most large successful dealers will not hold a unit past 45 days. Do whatever is right for your dealership so that you are you profitable and keep your inventory turning.