There are four key exercises to consider when appraising your appraisers:
1. Identify similarities and differences in your appraiser's techniques: Ask all your appraisers to evaluate the same car to see if there is a specific process they follow or whether there are patterns and differences in their techniques in determining a vehicle's worth.
2. Determine which appraisers are consistently estimating costs correctly: Review the actual reconditioning costs of the vehicles they appraised and won. After a vehicle is front-line ready, place each employees' appraisal of the final expected reconditioning cost side-by-side and see who estimated correctly and where the misses occurred.
3. Inspect the detail in each of the appraisals they are doing: Examine how much detail team members add at the time of appraisal. Determine if there are plenty of notes and pictures or whether there are too few. Remember, the more detail, the better.
4. Make improvements so everyone can be more successful: Look for areas of improvement for your appraisers and supply the education they need to estimate more accurately.
At the end of the day, there is no need to let antiquated or incorrect appraisal methods negatively impact your stocking or the profitability of your dealership. Your team members may be appraising to justify the amount they give or appraising the vehicle for what it is truly worth for your store. Either way, their success leads to your success and improves profits for your whole dealership.