PowerSports Business

June 13th, 2016

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www.PowersportsBusiness.com SOLUTIONS Powersports Business • June 13, 2016 • 39 I was having one of those "walk down memory lane" sort of conversa- tions with a friend. Bench racing, the state of the power- sports industry, how far we've all come since the economic implosion, what's on the horizon for all of us, saving the world, etc. The discussion turned to the simi- larities and, at times, the disconnect between dealers and manufacturers. Discussing the similarities between dealers is one thing. Dis- cussing similarities between dealers and OEMs is quite another, but down that road we went. There has always been a perception of dis- connect between the dealers and the OEMs. One's needs were not always viewed as the other's, and vice versa. When I owned a dealer- ship, it was sacrilege if you thought there were similarities. "Who's not doing what? What's been shoved where? When will they get it?" — That was a more accurate dealer perception of their relationship with the OEMs. If you think that sentiment isn't still out there, I'd say think again, because it is, and it shouldn't be. I'm not saying everyone feels this way, but more folks do than you might think. Many dealers perceive that the OEMs don't care enough about them or the travails they go through. And the OEMs, for their part, feel the same way at times. And that's so far from the truth, but …. If you've been in this industry any time at all (dealers and OEMs), whether you've said it out loud or not, you know this to be true. It's a like a family secret everyone knows but doesn't want to discuss. Here's another family secret: We need each other, but don't always articu- late it well. This goes back to understanding whose needs are not clearly being addressed — yours, mine or both. Misinterpretations can be long lasting if not dealt with, but you've got to acknowledge that they exist first. Find out what they are, and deal with them. Since forever, both the dealers and manu- facturers have always had similar goals and aspirations. We both want healthy, profitable businesses. We want to take care of our clients and team members and have growth in ways that are both long lasting and stable. That in itself should form an understanding and dispel any notions of not wanting the same things. We sell units; they sell units. We sell parts; they sell parts. We have service departments; they have service departments. We finance; they finance. It's all relative — what we do, and what they do — just on different scales. Think about flooring costs, as an example. As a dealer principal, watching my flooring costs go up was always unsettling. It never crossed my mind that the OEMs I represented had the same issues. They have flooring lines just like we do that go up and down, along with the associated costs. If you have units that aren't moving and are tying up lines of credit, the OEMs are right behind you with the same units not moving and tying up lines of credit. Have you ever gotten onto your sales department for selling too many vehicles in a month? Probably not, but have you ever thought you were sold too many units by an OEM? Probably so, but like any customer, you can say no. My flooring lines grew because of me, no one else. A lot of what hap- pens on both sides is because of what we do, and unfortunately what we don't do. We both have a lot of the same issues, always have. To take this one step further, one does not exist without the other. It's always been that way and always will be. So why the discon- nect? Perhaps we're not clear on what we need from each other? Could that be? You'd think that the needs of both sides would always be well articulated, heard and understood! After all, we have regular contact (Do we?), great interaction (Really?), and we all know what the other goes through (Are we sure?). Do we understand, both dealers and OEMs, what it takes to get done what needs to get done, along with the trials and tribulations that go along with it for both of us? I'm sensing a little disconnect with the "We all know what the other goes through to get the job done" comment right about now. Perhaps we don't know as much about the other as we think we do. It's always easy to think you know something, especially if you're surmising. Metrics don't tell the whole story. Mutually beneficial collaboration begins with folks knowing what the other needs and why. But how do you know, if you don't ask? How do you know, if you haven't walked in their shoes? Talking the talk is one thing. Walking the walk is completely different. How many dealers have spent time at any of the OEMs' corporate offices following folks around, seeing what they go through daily to accomplish what they have to do for the deal- ers? On the flip side, how many folks from the OEMs have spent time shadowing a dealer principal or a service manager, watching what they go through daily to get their job done? No job is easy. It's always easy to say folks aren't doing what they should be doing, when the other doesn't actually know what that is. Wouldn't it would be interesting if you had folks from the OEMs and the dealer body spend a couple of days in each other's envi- ronments more often? No better way to show someone the other person's world than to drop them in the middle of it. You might come away with a greater appreciation of what the other person does, perhaps gain a little more insight about why they do what they do and perhaps have a much better appreciation of the other. Perceptions are one's reality. Time to change a few; don't you think? PSB Mark Mooney is the principal of Mark Mooney Powersports Consulting. Contact him at mooneypowersportsconsulting@gmail.com. Understanding dealer, OEM perceptions THINK ABOUT THIS… MARK MOONEY

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