How Browns Autos are pricing and sourcing stock post lockdown
In our latest webinar, we were joined by Josh Clayman, Sales Manager at Browns Autos which is a family run independent dealership based in Brighton.
Josh only joined the family business in the last twelve months after a long career in teaching and what a first 12 months it’s been for him joining the automotive industry and facing a global pandemic in his first year.
Marc Thornborough kicked off the conversation by asking Josh what he’d been observing at auctions with wholesale prices and like our poll results, Josh has seen prices increasing. Browns Autos are trying to think outside the box and be clever at how they’re bringing in new stock which has seen them dip their toes into the private market through Dealer Auction. With a lot of auctions still operating online, Josh explained it’s hard to buy stock when you can’t physically see it and touch it.
Browns Autos have had brilliant sales volumes in the last few months and Josh put it down to their hard work during lockdown. They took advantage of the down time and used it to rebrand their digital footprint, making sure they were visible on social media, designed a new website and made sure consumers knew what they were going to do differently when they reopened. Browns Autos usually have around 50 cars in stock on rotation and they’ve sold nearly 100 cars in just two months. Great to see they’re reaping the benefits of their hard work during lockdown.
Selling cars quickly has its own challenges as your forecourt becomes empty fast and you need to replenish that stock quickly. Browns have been sourcing their stock from the private market over the last few months and it’s paying dividends for them right now. He explained that when you buy from private sellers, they’re usually in very good condition and you get them at a much cheaper price than you would at auction right now.
When asked what data and tools are used for sourcing, Josh shared that he uses a mixture of tools such as Retail Check, Market Insight to see what’s popular in his local area and of course his own experience which seems to be working really well for them.
Moving on to buyer behaviour, Josh went on to say how popular the live video viewings have been for them, particularly in the early weeks of lockdown when buyers weren’t venturing out as much as they are now. He’s found that people act very differently, you get some people who are very cautious visiting a dealership and others who don’t stick to the guidelines we set out but as a business, you have to stand by the policies you’ve put in place.
As a small family run independent with around 50 cars in stock on rotation, we’ve sold nearly 100 vehicles in just two months which is fantastic for us.
Josh talked about his career transition from education to automotive which many of his friends joked that he’d gone from the most trusted profession to the least trusted but Josh stated he’s really trying to make a difference in this sector and show that car dealers can be trusted and that speaks volumes in their reviews.
A question from a fellow retailer came in for Josh which was, “Out of all the changes you’ve put in place, are there any that you will keep and that have impacted your business positively?” to which Josh mentioned the following two:
- Live video viewings – these are great because they allow people to see the car before they commit to travelling to the dealership.
- WhatsApp integration on their website – this gives buyers the ability to ask as many questions as they want about a vehicle which sometimes can be time consuming, but it makes sales.
Discussing the topic of leads and how valuable they are, Josh told us that he’s seen an increase in leads which feel more valuable now than ever before. He’s noticed that enquiries that come through text or WhatsApp seem to be more engaging conversations that lead to a sale, possibly because we now have a culture of texting and once you’re in that conversation with a buyer, you’ve almost hooked them in. He also went on to say that sometimes it’s difficult to build rapport with a customer over email as it’s very formal as opposed to text.
Another question came in from a fellow retailer asking if private sellers are willing to negotiate. Josh explained that some say they’re not but when it comes down to it, they can be flexible. When contacting a private seller about a vehicle, he never mentions price, he only ever expresses interest to go and look at the vehicle and then he can negotiate there if the vehicle is suitable. He would only ever look at private cars within a 40-mile radius too so it’s not too much out of their way.
We ended the interview by looking ahead to Q4, Josh thinks the demand will start to slow down and get back to normal in the coming months but there are still so many unknowns with Covid still lingering, it’s hard to predict anything now. If it does start to slow down, then Josh believes that auction prices may also drop.
Links…
- Catch up on the full webinar.
- Read Browns Autos other blog post about how they got retail ready
To put your business in the best possible position when pricing and sourcing stock, be sure to make the most of the powerful tools available to you. Use Market Insight to get a bird’s eye view of supply and demand for vehicles. Use Retail Check to make sure you're not overpaying for stock when sourcing it and again to make sure your vehicles are priced to market from day one to achieve a speedy and profitable sale. And if you're looking for new ways to source stock, be sure to start a free trial of Dealer Auction, the UK's largest digital auction marketplace.