Rarely in our present day, have we been able to pause and reflect on the changes we have faced in this new era. What is undeniable is how, industry-wide, there has been an incredible ability to adapt, and overcome adversity with solution. This has been crucial in the evolution of the auto recycling industry as we know it.
There has been a need to overcome many shifts in the past two years since COVID first heavily impacted salvage buying. Initially, there was a shortage of supply, and title work lengths began to triple in expectancy as government shutdowns affected all. Then, as the shutdown lifted, there was a sudden flood of inventory that inevitably shifted the balance of the industry, and inventory prices soared. Where once, we had seen demand drive purchasing, there was a new focus on supply-driven data.
Transportation shortages and gas prices alone made a heavy impact on the industry’s entire approach. What used to cost an average of $1700 per vehicle, currently averages at $2600. This has given the auto recycling industry a heightened awareness of inventory turns and profit yields. Where once there seem to be only adversities, suddenly solutions became the focus.
While the market was being flooded with supply, BidCall was continuing to refine and develop its already advanced bidding system, with a focus on analytical data. We sat down with co-founder, Racer Yoemans, to get his insight on how BidCall is not only keeping up with but exceeding the changing times.
“We have built our program around the core values of a circular economy. BidCall’s unique valuation program eliminates wasted resources and caters to the specific needs of the user. We have coined the term “C$V” or “Current Salvage Value” with an intentional dollar sign because BidCall’s program does just that, it keeps cash on the side of the auto recycler, by assessing a bid that optimizes profits and minimizes waste. Instead of overstocking stagnant inventory, there is a precise value that is assessed, and specifically placed on each piece of inventory by analyzing the current inventory turns.”
When asked how inventory turnover could affect profit yields, he reflected on his 30+ years of experience in the salvage industry.
“In my career, the one constant in this industry is change. Change in inventory based on uncontrollable variables, like manufacturers and weather, and change in technology and how we apply it to our advantage. With BidCall, there is now a way to bridge the gap between both and use analytical data to assess how we should value a vehicle. Our sophisticated algorithm applies how long that part statistically rotates in inventory. The “DTS” feature, or days to sell, a piece of inventory is factored in, to refine the bidding process, and individualize an optimized bid. This caters to the specific needs of the auto recycler, giving a clear advantage. The days of boots on the ground in the sun, rain, and snow are leaving us behind, and a new age of precision bidding and remote locations is fast approaching. There have already been countless changes the industry has faced, and at Bidcall, we foresee continuing to bring solutions.”
Bidcall certainly has the experience behind it, and the foresight ahead, to pave a road less traveled. Co-founder, Racer Yoemans, has now begun a long overdue conversation with industry leaders about a better way to optimize profit yields for the auto recycler. He has presented a way to refine the bidding process while working together, and as a result, Bidcall has stayed focused on a path of eliminating waste, exhausted resources, and excessive funding. His vision continues for the entire industry to be in a symbiotic relationship, working smarter together, not harder.
In anticipation of an innovative future, where Bidcall strives to change the way you see salvage, a mutual conversation is now taking place, and Bidcall invites you to join.
