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PFW IntelliDealer Exclusive—Used Evaluations

PFW Password - Fall 2005 Equipment dealerships have historically faced a challenge when determining the value of their used and traded-in equipment. Traditionally, a crude, paper-based method has been used, where potentially vague field reports and checklists kept in paper files are implemented. Unfortunately, this approach can result in the loss and redundancy of data—owing to the lack of a company-centralized data location. This may then lead to internal confusion and lost “washout” residuals or, in other words, equipment revenues that are “left on the table.”

Of course, heavy equipment is typically designed for a finite number of hours of “life” and, depending on storage conditions, usage, maintenance and repair history, a machine will use up this “life span” accordingly. Your used and traded-in equipment asset, then, is an estimated value -- relative to the remaining, unused service life of that inventory.

Enter PFW IntelliDealer’s Solution
The Used Evaluations system -- developed specifically for PFW IntelliDealer -- is used to track used equipment condition and value. Used Evaluations allows dealers to systematically and electronically build history on a trade-in, so that a determination of unit value can be made, rather than falling back to the imprecise, published “book value” of the machine [Fig. 1]. Then, by working “backwards”, a customer price can be calculated after carrying costs are included. The system includes a built-in workflow, where dealership roles and responsibilities are factored into the process, so that the right people are performing the proper part(s) of the evaluation.

Designed specifically for equipment dealerships, the Used Evaluations system is built with the workflow of your dealership in mind. The evaluation process is conducted within the context of six typical dealership roles:

• Sales Representative
• National Sales Representative
• Sales Manager
• Service Representative
• Used Equipment Manager
• Branch Manager

Once these user roles are configured via IntelliDealer’s WebAdmin application, administrators can specify whether an e-mail or an IntelliDealer message is used to notify the user when an evaluation falls within their particular area of responsibility.

Typically, the evaluation process is started by a Sales Representative who is structuring a possible deal. The salesperson may be able to complete the required evaluation sheet but, if not, the salesperson can forward the evaluation to a Service Representative for assistance. Once returned from the Service Representative, the evaluation can be submitted to the Used Equipment Manager, who accepts or rejects the evaluation and returns it to the salesperson.

A Systematic Approach
Used Evaluations is systematic. Only one evaluation can be completed per stock number. This is to prevent a customer from “shopping around” at the dealership’s various locations in order to get the best trade-in price by associating previous evaluation request values with the current one. Additionally, dealership processes can be paralleled as the evaluation must be completed by a Sales Representative before the Used Equipment Manager receives it.

Throughout the process, each user will conclude their step with a system-prompted “last minute” comment. Evaluation history is accessible so that similar machines can be viewed in order to assist the appraisal values. The final analysis lets the user determine the value that can be given for a trade in. This calculation can be made by stating the desired margin by percentage or dollar amount.

Note that the option also exists to perform an inspection only. Here, no values are loaded for the unit, other than estimated reconditioning costs. When the inspection is completed, it can be loaded into history for future reference.