PowerSports Business

Powersports Business - May 25, 2015

Issue link: http://read.dmtmag.com/i/511164

Contents of this Issue


Page 7 of 39

FINANCIAL It seems like I have had a lot of discussions lately about the validity or lack of validity in word tracks. This is where I have decided that I stand on the topic, and I hope it gives you something to think about: I believe that word tracks are a necessary step in the learning process when it comes to any kind of selling. I am not telling you that you need to memorize word tracks, and they will work for you. In fact, I would say the exact opposite. Memorizing any blindly recited word tracks are bound to fail miserably. All salespeople (I include finance people in this category, as I hope you do) need to develop their own word tracks that work for them. Many of the things we say we learned from others before us. If you learn the ideas and make your own word tracks or presentations from this idea, then you will be successful. Where to start? We are going to start with a common objection that most of us have heard. (A similar concept could be used to sell a mainte- nance program.) CUSTOMER: I have a mechanic that does all of my warranty work for me. FINANCE: OK, where do you have it serviced? CUSTOMER: My buddy works on bikes in his garage. He can do all of my services. FINANCE: Cool, I wish I had a buddy who would do that for me. When you leave here, do me a favor and contact your buddy. Tell him you're going to give him $24 a month for the next three years, but here is what he has to do for you in return: If your bike breaks down due to any mechanical failure that would be covered by your original manufacturer's war- ranty, he will repair the bike at no charge to you. If the bike is not rideable, any time day or night, he will tow your bike back to his shop/house also free of charge. (This is where you would also list any other coverage the service contract has, such as trip interrup- tion or vehicle replacement.) No matter how many times a covered item breaks, your buddy must repair it. What do you think your buddy would say to this deal? CUSTOMER: No way! FINANCE: Well, if it's a bad deal for your buddy, would you agree that it must be a good deal for you? CUSTOMER: Yes. FINANCE: Which one makes the most sense to you — 36, 48 or 60 months? The idea here is to take the offered coverage and turn it around so that the customer sees it from the other point of view. When you think of the financial risk that the service contract provider is taking on a bike-by-bike basis then the customer's perception of that risk goes up. The word tracks above are just one way for that idea to be conveyed. Here is another common objection. CUSTOMER: I don't need GAP. I already have insurance. FINANCE: Can I ask you how you feel about paying for something you no longer have? CUSTOMER: Not good. FINANCE: Me either. Today you are giving the bank a down payment of $1,000. Would you consider it fair if, 18 months from now, the bank called you and said that it needed an additional $1,500 down within the next 14 days? CUSTOMER: No! FINANCE: Let's say that, 18 months from now, your bike gets stolen, gets in an accident, or someone backs over it in the parking lot, and it is declared a total loss. How much of the loan do you think that the insurance company is going to cover? 8 • May 25, 2015 • Powersports Business www.PowersportsBusiness.com The good and the bad of word tracks STOCK MARKET WATCH DEALER FINANCIAL SNAPSHOT APRIL 2015 Same Store Sales for CDK Global Recreation dealer- ships were up 1.8 percent in April. The South had the largest increase, up 5.1 percent in overall sales. The Northeast had no change in its overall sales, but did increase in service by 6.3 percent. All five regions were up in service. The West had the highest increase in service with a 9.0 percent increase. Also, all five regions were down in parts. The South had the larg- est decrease in parts, down 2.6 percent. PARTS SALES Nationally, 718 dealers were up in parts, and 751 were down. SERVICE SALES Service sales saw 857 dealers up, while 557 were down. MAJOR UNIT SALES 692 dealers were up in major units, and 602 were down. NORTHWEST -0.9% Parts Department 3.1% Service Department 1.4% Major Units 1.3% Overall MIDWEST -0.1% Parts Department 8.9% Service Department -4.5% Major Units -2.9% Overall NORTHEAST -1.1% Parts Department 6.3% Service Department -0.9% Major Units 0.0% Overall SOUTH -2.6% Parts Department 6.4% Service Department 6.0% Major Units 5.1% Overall WEST -0.6% Parts Department 9.0% Service Department 3.9% Major Units 3.4% Overall UNITED STATES -1.1% Parts Department 7.3% Service Department 1.7% Major Units 1.8% Overall Stock Price Percent Company Ticker 5/1/15 Change Dover Corporation DOV $75.31 8.5% ArvinMeritor ARM $13.22 6.4% Carlisle Companies CSL $97.49 4.5% Deere & Company DE $91.39 2.6% CDK Global CDK $48.51 1.7% MarineMax, Inc. HZO $21.81 -7.2% Universal Technical Institute UTI $9.40 -7.9% Speedway Motorsports, Inc. TRK $22.46 -9.3% Harley-Davidson, Inc. HOG $56.59 -9.5% Cooper Tire & Rubber CTB $36.91 -12.5% POWERSPORTS BUSINESS WINNERS AND LOSERS MARKET WATCH Change 5/1/15 from 4/10 % Change Powersports Business Index 308.968 -7.79 -2.46% Dow Jones Index 156.770 -0.29 -0.19% S&P 500 Index 143.494 0.42 0.30% Source: Wells Fargo Securities LLC 0 100 200 300 400 500 600 700 3/6/15 3/13/15 3/20/15 3/27/15 4/3/15 4/10/15 4/17/15 4/24/15 5/1/15 PSB INDEX VALUE DOW JONES INDEXED S&P 500 INDEXED STOCK MARKET ACTIVITY F&I SOLUTIONS FOR MORE ON THE SAME STORE SALES DATA For more information on this report and other industry data, contact: cdkrecreation.com/dataservices *The Powersports Business Index has been adjusted to reflect the addition of CDK Global (CDK) on 12/5/14. of validity in word tracks. STEVE DODDS See Dodds, Page 9

Articles in this issue

Links on this page

Archives of this issue

view archives of PowerSports Business - Powersports Business - May 25, 2015