INV-07
Days Supply & Mix By Segment
Days supply cut by segment and then by price band, monthly, because a store-wide average hides two opposite problems.
This month
90 days by segment and price band
How one segment is computed
| 1 | Units in stock, this segment | |
| 2 | Units retailed here, trailing 90 days | |
| ÷ 90 | Average units per day, this segment | |
| = | Days supply, this segment 90 days by segment and price band |
The working numbers, one segment at a time
| Segment | In stock | Retailed, trailing 90 days | Units per day | DAYS SUPPLY | Days-to-sale, last ten here | Lost sales and unsold, 60 days | What to order, what to move |
|---|---|---|---|---|---|---|---|
Days supply by segment — every segment gets a row
| Measure | Actual | Standard | On / Off |
|---|---|---|---|
| Adventure | 90 days by segment and price band | ||
| Sport and premium naked | 90 days by segment and price band | ||
| Modern classic | 90 days by segment and price band | ||
| Cruiser and bagger | 90 days by segment and price band | ||
| Touring | 90 days by segment and price band | ||
| Middleweight naked | 90 days by segment and price band | ||
| New turn, annualized, across all six | 4x per year |
Cut it once more by franchise. A segment can look survivable while one franchise inside it is drowning — two different conversations. If the DMS will not group it that way, group it by hand.
The price-band ladder, rung by rung
| Measure | Actual | Standard | On / Off |
|---|---|---|---|
| Under $10,000 | 90 days by segment and price band | ||
| $10,000 to $14,000 | 90 days by segment and price band | ||
| $14,000 to $18,000 | 90 days by segment and price band | ||
| $18,000 to $24,000 | 90 days by segment and price band | ||
| $24,000 and up | 90 days by segment and price band |
Coverage, rung by rung
| Band | In stock | Colors or builds | Retailed, trailing 90 days | Coverage met? Y / N2 live units per rung in stock, ride-away, more than one colour | Segments stacked on this rung | Action, with a date |
|---|---|---|---|---|---|---|
What the mix is costing, or earning
| Measure | Actual | Standard | On / Off |
|---|---|---|---|
| Close rate on floor ups — where empty rungs show up | 25-33% | ||
| Front gross on new, percent of selling price | 12% of selling price | ||
| Floorplan planning rate | 8.5% APR | ||
| Advertising per unit retailed | $300 per unit retailed |
Order from a trailing 90-day retail window and a live look at what the market is asking for. Ordering from memory is ordering from a data set a year and a half old.
Days supply, mix and coverage standards
- 90 days
- by segment and price band
- 4x per year
- 2 live units per rung
- in stock, ride-away, more than one colour
- 8.5% APR
- 12% of selling price
- 25-33%
One sheet a month, kept. Segments running long feed straight onto the non-current list (INV-06).