Rida Case Study

Rida doubles turnover rate with JP.cars

Better stock insight leads to a higher turnover rate

As a family business with seven locations, Rida is active in the sale, rental and damage repair of used cars, with a focus on the Kia and Opel brands. Since the car company started using the JP.cars software, Rida has gained greater control over its slow movers and doubled its turnover rate within a matter of months.

Rida works with the data and software of JP.cars

Selling slow movers faster

Sales executive Martijn Dieleman and the sales team of Rida noticed that several cars had been in stock for an extended period. They began looking for a way to gain greater insight into the stock days and to sell slow movers faster. JP.cars turned out to be the solution.

“We wanted a clearer picture of how to we could get some movement into the cars that had been sitting on the lot for a long time,” Martijn explains. “I was already familiar with JP.cars and knew how easily the software provides insight into stock days, sales prices and the marketability of your stock. Other platforms do provide pricing information, but key details are missing. With JP.cars, we can also see the prices at which comparable cars are being offered, how long they have been on the market and how much their prices have been reduced over that period.”

Average stock days down by 40 days

The first results became apparent soon after the software was implemented within the Rida group. “Our first goal was to sell the cars that had been in stock the longest. We made progress fairly quickly. We still have a few slow movers, but the data shows the number of slow movers is falling. The average stock days across our stock dropped by 40 within just a few months,” Martijn says.

The data also helps Rida prevent new slow movers. Martijn: “We use the software to valuate trade-ins and when purchasing new stock. JP.cars makes this much faster than comparing prices online yourself. It also gives us access to data that we did not previously use during valuations, such as marketability. This allows us to estimate how quickly we will be able to resell a car, which ultimately helps us prevent new slow movers.”

Turnover rate doubled within a few months

Rida has not only sold its older stock faster. New stock is also finding a buyer sooner. “Since we started using the software, we have seen our turnover rate double within a few months: partly because we have sold our slow movers, but also because new stock is selling faster. As a result, replenishing our stock has become our new challenge,” says Martijn.

“We previously had more than 100 cars listed online, compared with around 80 today. It takes time for a purchased car to arrive and be prepared for sale. In the meantime, we continue selling cars. Replenishing our stock is therefore our current priority.”

Pricing protocol as a key success factor

Part of the success comes down to Rida’s custom pricing protocol, which was set up together with JP.cars during the pilot period. “The software now provides pricing recommendations for our stock that reflect our margins and our specialist position,” says Martijn. “As a top brand specialist for Kia and Opel, we can price these brands slightly higher. The software shows exactly what position a given sales price gives you in the market. That allows us to keep a close eye on the pricing of our stock.”

The pricing protocol was refined step by step. Martijn: “Our main goal was to sell the slow movers. Ideally, you want to get off to a flying start, but you do not want to configure the protocol in a way that reduces prices too aggressively and causes you to sell cars at a loss. We fine-tuned that together, and the way the protocol is set up now works really well.”

Software guides stock management

The software has made managing the stock much faster and more effective for Rida. “We previously tracked the stock days of our cars manually. That was far more time consuming and relied more heavily on instinct. Now we can support that instinct with data,” Martijn says. “Data combined with the experience of our colleagues gives us a clear and reliable picture. Once a week, a colleague and I review every car in our stock. Depending on the software’s recommendation, we then raise or lower the price. JP.cars guides our stock management because it gives us faster and better insight into the current status of our stock.”

Rida continues to optimise its stock with the help of JP.cars. Martijn: “Over the coming period, we will keep using the software to monitor whether we are hitting our targets. At the same time, we are focusing on replenishing our stock.”

Discover how JP.cars impacts turnover rate

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