Issue link: http://read.dmtmag.com/i/780450
www.PowersportsBusiness.com SOLUTIONS Powersports Business • February 13, 2017 • 25 Since the parts, gar- ments and accessories department has the greatest potential for gross profit in most dealerships, we are going to provide seven ways to improve your PG&A sales. All of them deserve reinforce- ment. Your ability to properly manage this department and maximize its sales potential will have a significant impact on the overall suc- cess of your business. Your customer's PG&A experience relates directly to your dealership's ability to develop "customer for life" relation- ships that lead to additional unit sales (and the related F&I, service, and PG&A business). There are significant differences between "average" dealers and those who maximize sales and profits in their PG&A departments. Good-performing metric dealers consistently achieve 35-40 percent (or more) in gross profit margins, and over $1,500 in PG&A gross profit per unit sold. In addition, PG&A inventory ties up a lot of capital, which adversely affects the store's cash flow. You can't afford to have a reaction- ary PG&A operation. You must develop and operate a proactive department that stays in contact with customers, tightly controls inventory turns and valuation, and aggres- sively promotes sales. Here are seven best business practices that you can use to maximize the sales opportuni- ties for your PG&A department. 1. Provide high-quality sales training for your customer-facing staff. Sadly, this is rare in most dealerships. These folks are this depart- ment's front-line sales staff. If you want to the best results, hire good salespeople and provide them with the proper training. Lean on your suppliers to provide additional product-spe- cific sales training. 2. Develop a Safety Gear Checklist to ensure your staff asks the right questions to trigger additional sales. More than 40 percent of customers have old riding gear, or none at all. Few people will refuse if you ask: "Would you mind if I ask a few questions to ensure you get the proper safety gear?" Safety is a key word that will help start the conversation. There are additional word-tracks that sales- people should use to determine the customer's riding gear needs. Develop the questions you want them to consistently ask each customer. For example: Question: "Do you currently own a helmet?" If the customer already owns a helmet: "What brand and style is it (full face, etc.)?" "What material was used for the shell (fiberglass, composite, etc.)?" "How old is it?" (Age can affect the func- tionality of the helmet, particularly fiberglass.) "Where has it been stored?" (Solvent and other chemical fumes can degrade the effec- tiveness of many helmet materials.) "Does it have a DOT certification?" "Has it been dropped or suffered crash damage?" (If so, it may no longer protect them properly.) 3. Create mannequin displays outfitted with essential riding gear packaged for on-road and off-road riders. Offer both "Basic" and "Advanced" packages. It is our responsibility to ensure our customers have the proper gear to ride safely and comfortably. These types of packages are practical and should be treated as a necessity. 4. Have designated, trained apparel and accessories specialists on staff. I've tracked a number of dealers who have used this tech- nique to average over $2,000 in PG&A gross profit per vehicle sold. Good salespeople who have department or clothing store experience can really boost sales. 5. Provide chairs for waiting, changing rooms with full-length mirrors, and low-vol- ume soothing music to relax your customers. Think department store. 6. Move the majority of your fast-turn inventory closer to the parts counter for speedy access. Reducing the time it takes to reach the inventory that turns the most (6-plus times per year), allows your sales team to spend more face-time with customers. Do the math. If you can get one more line item per ticket because your staff had a couple of seconds more to spend with your custom- ers, you will end the year with a significant increase in sales. 7. Set aside a special "On Sale" area. Make sure it is clearly marked with attractive signs that can be seen from the main entrance of your store. This is something that many deal- ers fail to do. "What's on sale" gets many shoppers fired up. Pay attention to how the big boys like Cabela's do it. They have a "Bargain Cave" located at the back of their stores. It is crammed with "stuff" and always very busy. You want customers to travel through other displays of apparel, accessories or even units to get to it. This is the idea of milk-at-the-back- of-the-store. It's not uncommon for me to see different sizes, colors and shapes of "On Sale" signs or tags in various locations around the store. Take a lesson from other industries: have consistent signage and locate your Sale items in a specific area. Remember that the improvements you make, and the processes you implement, will not maintain themselves. You have to have a pro- active manager who continuously monitors and reinforces them, or they will fade away. As always, establish your baseline performance benchmarks so you can measure the results of your changes. PSB Steve Jones is senior projects manager at Gart Sutton & Associates. He has worked in the powersports industry for more than 30 years, for dealerships and manufacturers, and as a consultant and trainer. Contact him at steve@gartsutton.com. Seven ways to improve your PG&A sales RETAIL REMEDIES STEVE JONES