Commercial Inventory Mix

Over the years I had developed a stocking mix theory that worked very well and I've shared it with a number of dealers to use a guideline of what a good mix would be. It is broken down by body type and here it is:

  • Contractor Body (Flatbed with tool boxes on top, package of options) 10%-15%
  • USC Combo Body (Generally fits in service body category but sells in sufficient quantities to warrant its own category) 5%-10%
  • Flatbed (Flatbed, Stakebed [flatbed dumps go in dump category])20%-30%
  • Service Body (Service, Welder, Crane body, etc) 30%-45%
  • WorkMaster Type (Plumbers Body--Service Body w/Roof) 5%-10%
  • Dry Van (Cutaway, Conventional Cab, Tilt-Cab by not Cargo Vans) 15%-25%
  • Dump Bodies (Steel dump, Flatbed Dump, etc.) 5%-10%
  • Other Bodies (Specialty bodies) 5%-10%
The variance between the two numbers would be the variance of each market. Some markets sell more flatbeds and less service bodies, so they would be at the high end of the flatbed and the low end of the service body and so on. I have found that this strategy has proven with a number of dealers to be very effective and helpful. It has taken a lot of years of experience to develop this mix strategy and you may be able to benefit from it.
If you were just starting out, or you wanted to see how close this theory is, here is a way to do that. For one week, wherever you go (and get your team involved too), record the kind of bodies you see on the road, on the job site or parked somewhere. Take it even further by recording the length of the body or any other unusual things that you might see. This is a good way to see what I have said about color. I am sure you will find a lot of colored trucks. You might even record what colors they are. Of course, this is a great time to record who owns the trucks! After one week, compile the results and see what the real-life mix is in that area. Now, that is a small segment of time, but I think you will find that it is very enlightening to you.

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