This KPI applies to both new and used vehicles and provides you with your average selling price of the vehicles that you have sold.
This statistic is usually provided for you on your franchise manufacturers composite reports and shows the average selling price for new and used vehicles separately.
Example:
A) Invoice value of vehicles sold = R11,776,590 B) Number of units sold = 945 C) Average Selling Price = R12,462 (A ÷ B)
Discussion:
It is useful for establishing your funding requirements in stock when you are putting together your budgets and business plans.
It is also useful in the assessment of your stock profiling exercises for used vehicles whilst your figures for the new vehicles will be heavily influenced by your fleet sales activity and your customer profile.