Issue link: https://read.dmtmag.com/i/328305
www.PowersportsBusiness.com SOLUTIONS Powersports Business • June 16, 2014 • 23 SOLUTIONS This is a no-brainer, but it's a question each of us needs to consider. If you could hire somebody at minimum wage to do a job that would likely result in very profitable returns for your dealership, would you do it? Of course you would do it. Why wouldn't you? Minimal risk. Tons of upside. So why aren't you doing it? I can't figure it out. You and I know our industry, like every other retail sector, is dominated by online influences. You can have the best consumer service in the biz, but if you're flunking with online marketing, then your busi- ness isn't growing. It might be staying afloat, but no more. Eighty percent of us bike buyers start our shopping process online. This is where we first experience the unit. This is where we compare it to others. This is where we make our first decisions. In this environment, there is no confusing, overthink-the-obvious philosophy to con- sider. Bike buyers want to shop, compare and decide based off visuals of the units. The more visuals, the better. Meaning, the more pho- tographs of a unit you show me on an online listing, the more likely I as a bike buyer am going to shop your unit. Period. It's that simple. Let me give you an example. In Texas last month, two dealerships within 60 miles of each other advertised the same dual sport model on CycleTrader.com. One dealership did what too many other stores do — they posted the unit online with two stock photos of the bike. They did no extra work other than to use the photos the OEM provided them. Meanwhile, 60 miles down the road, another dealership took the same two stock photos plus shot an additional nine photos of that unit and posted all of these online on CycleTrader.com. The second dealership — the one that invested time into their online marketing — had 17 shoppers check out that one unit. The first dealership, the one who did noth- ing but post stock photos of the unit? They had one shopper view that unit. 17 potential leads vs. 1 potential lead. Think about the ramifications of that, not just for the one unit but for the entire showroom. How many additional consumers would you reach every month simply for hav- ing additional photos of a unit? Hundreds? Thousands? Many of you whom I've personally con- nected with online or in person, know this. You've heard me provide statistics much like what's discussed above. This is not new information, but neither is it something most of us are taking advantage of. When I go to CycleTrader.com and view units, I'll often find as many or more dealerships placing just two stock photos of that unit online vs. others who are placing 5, 10 or 20 or more photos of that same unit. Why is this happening when we know more photos will result in more consumer interest in our product? Most of the time I'm told it's a staffing issue: My sales guys were too busy and didn't get to it this week. As if that's a valid excuse. 22 • June 16, 2014 • Powersports Business www.PowersportsBusiness.com Who do you cater to? The best dealers in the country have one very important ingredient. They cater to the guy who hasn't yet made the decision. The entire business is set up for the Just Looker, not the Just Buyer. Most dealers simply staff to the number of bikes they are selling, not the ones they could be selling. Most dealers run events for those already on bikes, not those who could be. Most sit down customers who are ready to look at numbers, not causing that readiness through the sit down process. Most pencil the deal on a price tag, causing the price shopping culture. And hangtags … those damnable suggestions from OEMs … Staffing — The biggest chronic deficiency in our industry continues to be an under- staffed sales floor. Most staff based on the business you are currently getting, not based on how many customers you should be get- ting per transactional ratios. Most dealers need twice as many staff as they currently have, but they simply cannot stomach the "expense" of adding more employees. When you run understaffed, you can only get to the people who are ready to buy a bike and are most likely your price shoppers. The looker will buy if the emotional connection to powersports and your store is made. That takes time. That takes people. And those customers are the best cus- tomers you have. That's where the margin is. That's where the repeat business is. And that's where all the referrals are. In short, by running understaffed, you are cutting out the very people who make your store profitable. Staff for the looker, not the buyer. Events — I'm all for having events to bring your existing customer base back into the dealership. Let's give them a reason to come back in and hang out. But what about the other 97 percent of America? What are you doing to drive them into your store? Tell me about the local 5K race packet pickup at your store. Tell me about outsourcing your training room to local charities and/or police services. Tell me about how you have face painting and jumpy tents for kids, therefore driving salivat- ing dads into your stores. Why not? How far do you really think a bikini bike wash is going to get you? (FYI, all above events are actual dealer events run in 2014). Sales Process — Old school = have sales- people take the deal all the way to commitment, and then involve the manager. New school = Have salespeople focus SOLELY on the rela- tionship, and have another face do any/all nego- tiations. This allows for salespeople to do what we want them doing most … engaging the cus- tomer about something OTHER than the bike. Having the salesperson try to hold margin, pres- ent numbers or disclose trade allowances puts the salesperson in a bad spot, which encourages staff turnover. Let's face it, relationship builders hate negotiating, and closers hate the relation- ship part. If you want to maximize … specialize. A two-person approach actually fuels employee retention. Have your process set up for the looker, not the buyer. Pencil Strategy — When the deal is pen- ciled, STOP putting a total price on the first pencil! Talk about CAUSING a guy to become a price shopper. Ninety percent of America finance these toys, so why not make it easy? Deals should be penciled with a payment (or payment options), leaving room for F&I to extend the term to put product into it. $10K for a toy sounds like a lot of money. So does $15K and $20K. But if you can make my escape come true for $200/month and $1K down … I'm IN! Cater to the emotion of the looker, not the logic of the buyer. Hangtags — If you believe that most of the industry is chronically understaffed, then what do you think happens with price-oriented hang- tags on your bikes? That's right … you educate everyone coming in and they leave. The only people who stay are the ones ready to take you to the woodshed on your negotiating skills. Not having a hangtags forces a conversation, even if it's a conversation about why you don't have prices on bikes. Train your staff to overcome that objection and at least there's a conversation happening. (To be clear — I'm cool with hang- tags that list accessory or features on the bike … consider them a babysitter until the sales guy can get there.) SO MANY deals are missed by putting price-oriented hangtags on bikes. According to the MIC, there are 4,700 deal- ers where I can go to have someone reactively allow me to buy a motorcycle. There are only a handful of dealers who are set up to proactively cause me to buy one. They have the staff, the events and the process to emotionally get me over the edge. Three percent of the U.S. plays in our powersports space. Are you catering to them, or the 97 percent who could be? PSB Sam Dantzler is the founder of Sam's Powers- ports Garage, a membership website dedicated to best practices and all-staff training. He can be reached at sam@samspowersportsgarage.com. Do you cater to buyer logic or looker emotion? More bike photos add up to additional leads SAM DANTZLER HEADROOM 90% Percentage of Americans who finance their powersports vehicles P22x23-PSB8-Solutions.indd 22 6/4/14 2:29 PM