What does it mean for automakers to press inventory on dealers

Meaning: car manufacturers force dealers to take more cash cars, which leads to the dealers' inventory will be larger and larger, and the funds will be more and more trapped by inventory.

As early as March 2010, the China Automobile Dealers Association proposed the construction of an "inventory early warning system", and since July 2010, it has been regularly carrying out inventory surveys of automobiles and dealers. Through the purchase, sale and inventory survey of automobile dealers, the inventory status of each brand of automobiles and the comprehensive inventory coefficient of the industry (inventory coefficient = ending inventory and current sales volume) are calculated, reflecting the current inventory depth of the automobile brands dealered by automobile dealers, guiding manufacturers to reasonably arrange production and reduce business risks.

The purpose of the auto dealer inventory survey: First, grasp the pulse of the market. Through the investigation of the inventory status of various brand automobile dealers across the country, we can timely grasp the overall situation of the industry and the future market trend; Second, assist in regulatory decision-making.

By understanding the changes in dealer inventory, it provides accurate information for relevant departments to formulate regulatory measures. Third, monitor operational risk. Timely reflect the fluctuations of production and sales in the automobile market, reasonably arrange production plans for manufacturers, and provide reference for dealers to formulate marketing strategies and control business risks.

It is to force dealers to take more cash cars, so that the dealers' inventory will be larger and larger, and the funds will be more and more trapped by the inventory.

Car sales refers to the sales method in which the first merchant asks the salesman to drive the car with the goods to the customer site for on-site order-taking, on-site sales, and on-site collection; The pre-sale order, in some areas, is called copying or quoting orders, that is, the salesman first visits each customer to get the order, and the company will distribute it after returning. The car sales model is mainly concentrated in second-tier cities and towns, and the distribution is booming.

The advantages of the car sales model: the salesman on-site sales, for the product market rate and the display of the shelves will be of great benefit, often many end customers are not in a hurry to get the goods, but see the salesman with the goods to the door, will also buy in advance. The car sales model has great benefits for sales.

In the traditional car sales management, the car sales inventory refers to the vehicle inventory, but there are problems such as inaccurate management, difficulty in inventory, and untimely inventory, which are difficult to expand on a large scale.

After using the socks to buy and sell the sales software, you can realize multi-warehouse management, set each car as a warehouse, take as many goods, sell as many goods, and view the inventory changes of each vehicle in real time. Sales data and performance statistics no longer need to be calculated a little bit.

Abstract: The inventory coefficient is what we usually call the inventory depth, which is the statistical result of a sample survey, which is the overall monthly inventory divided by the current month's car sales. Through the purchase, sale and inventory survey of automobile dealers, the inventory status of each brand of automobiles and the comprehensive inventory coefficient of the industry are calculated, reflecting the current inventory depth of the automobile brands dealered by automobile dealers, guiding manufacturers to reasonably arrange production and reduce business risks.

1. What is the inventory coefficient of auto dealers?

The inventory coefficient is an indicator often used in the automotive industry, which is an important basis for measuring supply and demand and judging market trends, and can reflect whether the cash flow of auto dealers is reasonable and whether there is overcapacity of auto manufacturers. It is of great significance for the automobile market.

The dealership inventory survey is mainly conducted among the top 100 dealer groups in China's automobile dealership industry. Covering more than 1,000 4S stores in most provinces of the country, and has a wide range of brand coverage, on the basis of the original domestic market main mass production and sales of car brands, has increased to 55 car brands.

2. How to calculate the inventory coefficient of automobile dealers.

The basic formula of the inventory coefficient is to divide the number of vehicles in inventory at the end of the period by the number of vehicles sold in the current period.

Inventory coefficient = vehicle inventory at the end of the period (amount or quantity) Sales of buried wild cars in the current period (amount or quantity).

For example, if 50,000 cars were sold in October, and there were 40,000 vehicles in stock at the end of October, then the current inventory coefficient was 4 5=.

3. What is the warning value of the inventory coefficient of the car dealer?

According to the common practice of the same industry in the world, the inventory coefficient is between the transfers, reflecting that the inventory is within a reasonable range; Inventory Coefficient", which reflects that the inventory has reached the alert level and needs attention; Inventory Coefficient", reflecting that the inventory is too high, and the operating pressure and risk are very large.