Issue link: https://read.dmtmag.com/i/343790
FINANCIAL 14 • July 13, 2014 • Powersports Business www.PowersportsBusiness.com STOCK MARKET WATCH Stock Price Percent Company Ticker 6/20/14 Change ARI Network Services, Inc. ARIS $3.07 12.0% Cooper Tire & Rubber CTB $29.83 5.7% Universal Technical Institute UTI $11.72 5.5% Bridgestone Corp. ADR BRDCY $18.09 5.3% TCF Financial Corporation TCB $16.49 5.2% Polaris Industries, Inc. PII $129.16 -1.0% Speedway Motorsports, Inc. TRK $18.20 -1.3% Brunswick Corp. BC $41.76 -3.4% Orbital Engine Corp. Ltd. ADR OE $2.25 -7.7% Spy Inc. XSPY $0.90 -15.1% POWERSPORTS BUSINESS WINNERS AND LOSERS MARKET WATCH Change 6/20/14 from 5/23 % Change Powersports Business Index 293.737 1.90 0.65% Dow Jones Index 147.403 2.96 2.05% S&P 500 Index 133.597 4.24 3.28% Source: Wells Fargo Securities LLC 80 100 120 140 160 180 200 220 240 260 280 300 320 11/8/13 12/9/13 1/6/14 1/27/14 2/25/14 3/14/14 4/11/14 5/2/14 5/23/14 6/20/14 PSB INDEX DOW JONES INDEX S&P 500 INDEX STOCK MARKET ACTIVITY * The Powersports Business Index has been adjusted to reflect the addition of TCF Financial Corporation (TCB) on 2/25/14. The single step in the overall sales and finance process that impacts dealer profitability the most is an effective menu presentation. We'll focus on the main presentation, with an exam- ple of "creating a picture" in the middle of it. At the end of this article, you will see what most business managers hear at the end of their menu presentation: "NONE OF THEM." THE PRESENTATION OF PRODUCTS AND PRODUCT PACKAGES You have: Hired the right business manager; Provided him or her with the right office technology; Signed up with the right providers and trainer; Coached and trained the entire dealership on how to make the next seven minutes the best they can be for your cus- tomers and your business manager with the proper disclosures, turnovers and interviews; Allowed your customers' interests to have been piqued (they've been through acces- sories, and they are excited and ready to com- plete the sale); Given the business manager an uninter- rupted seven minutes to make the best of his presentation. Business manager — It's time to deliver! This is it! This is the most important seven minutes in the entire sales and finance process. Your business manager at this point has memorized a portion of the script and always follows the same process. Here is a version that is used by many of the providers and trainers today, including myself. This is an abbreviated version for this article: Business manager Brian Gallmeier (BG) stands up and greets customer (CU) at the door, has some more introductory conversa- tions and shuts the door for privacy. BG: Make yourself comfortable. As we dis- cussed earlier, I have three responsibilities here at the dealership: to complete your paperwork accurately, to help you with you funding needs and to get you on your way as quickly as pos- sible. May we begin? CU: Yes BG: You are buying a ______, that's a great machine! Is your name spelled B-R-I-A-N S-M-I-T-H? CU: Yes. BG: And you still live at DEALER FINANCIAL SNAPSHOT JANUARY-MAY 2014 A year-to-date analysis by ADP Lightspeed shows Same Store Sales are up 9.8 percent through the end of May when compared to the same period in 2013. Major units were up 12.9 percent, while ser- vice was up 5.7 percent. Those departments, along with overall sales, saw increases in each U.S. region. Parts was up only 0.7 percent nationally, with the Northwest (down 1.4 percent) and the South (down 1.6 percent) reporting decreases. PARTS SALES 689 dealers were up in parts, while 687 were down. SERVICE SALES In service, 747 dealers were up, while 553 were down. MAJOR UNIT SALES In major unit sales, 755 dealers were up, and 416 were down. NORTHWEST -1.4% Parts Department 8.8% Service Department 15.3% Major Units 12.0% Overall MIDWEST 2.7% Parts Department 6.0% Service Department 9.8% Major Units 8.0% Overall NORTHEAST 1.2% Parts Department 1.9% Service Department 8.3% Major Units 5.4% Overall SOUTH -1.6% Parts Department 4.3% Service Department 12.0% Major Units 9.1% Overall WEST 1.8% Parts Department 8.7% Service Department 19.5% Major Units 15.0% Overall UNITED STATES 0.7% Parts Department 5.7% Service Department 12.9% Major Units 9.8% Overall FOR MORE ON THE SAME STORE SALES DATA For more information on this report and other industry data, contact: adplightspeed.com/dataservices The most important seven minutes of the sale F&I SOLUTIONS BRIAN GALLMEIER 100 Memorial Drive? CU: That's right. BG: You agreed on a price of $12,000 plus fees, you have $1,000 down, and you are pur- chasing $1,200 in accessories, is that correct? CU: Yes, that's right. BG: OK, we'll get to the rest of those details in a minute. We've verified the deal informa- tion, and I've already gotten approval from some banks for financing options for you. Now I'm going to share with you the optional prod- ucts available with your purchase today, may I proceed? CU: OK. SERVICE CONTRACT BG: The first product I'd like to share with you is an extended service contract. Do you know how long your manufacturer's warranty covers you? CU: One year. BG: OK, thanks. So our extended service contract can provide similar mechanical failure coverage for up to five additional years. It's exclusionary coverage, meaning everything is covered with the exception of things like high wear parts. An exclusions list is actually shown on the contract itself. CREATE A RELATED PICTURE, ANY PICTURE BG: Can you think of a situation where you See Gallmeier, Page 19