Issue link: https://read.dmtmag.com/i/164037
PSB PER UNIT $ SALES TYPE OEM Promotion Insurance Security Credit Card Fees Lender Fees Taxes Loyalty Programs Title & Registration Fees Doc & Admin Fees GAP Gift Card Other Freight, Setup & Handling Road Hazard Service Contracts Discount Parts and Accessories Prepaid Maintenance Labor 2012 (433.92) 422.78 499.04 142.68 136.51 29.06 24.75 76.26 129.01 553.13 (263.46) 194.89 538.02 436.05 947.20 (748.68) 593.29 1,553.71 534.98 TABLE 1 2013 (522.45) 354.07 475.29 121.86 118.65 28.41 25.47 78.02 135.19 571.01 (242.89) 217.10 577.31 488.32 1,000.85 (659.51) 718.07 1,694.34 713.89 CHANGE (88.53) (68.71) (23.75) (20.82) (17.86) (0.65) 0.72 1.76 6.18 17.88 20.57 22.21 39.29 52.27 53.65 89.17 124.78 140.63 178.91 Source: ADP Lightspeed ADP FROM PAGE 15 CONTINUED insurance and road hazard insurance all are traditional F&I products. Contract interest participation, a normal F&I product that does produce significant revenue, has not been included in this study. Dealership reporting of this particular item varies widely, and it was not possible to gather reliable data in a uniform manner at this time. It is clear from this study that service contracts are the driving force in generating F&I revenue. A 50 percent increase in credit card fees will mean little in the overall picture, and F&I FOCUS 18 • September 9, 2013 • Powersports Business would be easily be offset by a less than 0.5 percent drop in service contract revenue. In fact, the irritation factor inherent in a charge for credit card use likely carries a greater risk of driving the customer away than does offering more expensive insurances that would actually have some potential benefit to the buyer. Dealers would be well advised to pay close attention to the proven heavy lifters of the F&I world: freight and setup, service contracts, doc fees and prepaid maintenance. Because of Internet shopping and resulting low unit margins, solid performance here will carry the department a long way toward the traditional goal of contributing a substantial portion of dealership profit. PSB www.PowersportsBusiness.com Yamaha launches prepaid maintenance program Latest F&I product geared at repeat visits to dealership BY DAVE McMAHON EDITOR IN CHIEF Yamaha Extended Service is celebrating its 30th anniversary in 2013. Now, the revenuegenerating favorite has a new younger sibling to welcome to the Yamaha F&I family. Earlier this summer, Yamaha announced the launch of a new factory-backed prepaid maintenance program: Y.E.S. Maintenance. The prepaid maintenance program allows Yamaha dealers to capitalize on the growing number of customers who are opting to prepay for regular factory-recommended services. Yamaha designed Y.E.S. Maintenance exclusively for Yamaha customers using the periodic maintenance schedule in their vehicle's owner's manual. Customers can include the cost of Y.E.S. Maintenance as part of their financing program on purchases of new vehicles (motorcycles, scooters, ATVs and side-by-sides only). Yamaha claims savings of up to 30 percent on labor vs. pay-as-you-go maintenance, along with service with Yamaha Genuine Parts and Yamalube products. Julia McCarthy and Tom McCarthy from Motorcycle Management Consulting Services, Inc., assisted with the formation of the program. "You want to see them over and over again, because they're going to buy apparel, or parts, or kick tires on their next dream machine." ww cu tom ma cu sol gra pro the con ma sai and bec tom ten Julia McCarthy, Motorcycle Management Consulting Services "We're always looking for ways to expand the suite of products that Yamaha can offer," Julia McCarthy said. "We're looking for ways to tie the customer to the dealer and increase the opportunity for the dealer to see that customer again and keep him coming back, and buying a new Yamaha when he's ready to buy a new bike. This is a perfect fit for that philosophy." Consumers who purchase Y.E.S. Maintenance are allowed to use the program with the dealership at which it was purchased. "One of the big things with Yamaha in launching this was building that lifetime relationship between the dealership and the pro tom aga par Yam Y.E na bac It's vic the ran be the un ha pre Ya en P10x21-PSB11-Focus.indd 18 8/28/13 10:50 AM