Issue link: https://read.dmtmag.com/i/360137
FOCUS PSB F&I 18 • August 11, 2014 • Powersports Business www.PowersportsBusiness.com STOCK MARKET WATCH Stock Price Percent Company Ticker 7/18/14 Change Spy Inc. XSPY $1.02 13.3% Universal Technical Institute UTI $12.50 6.7% Bridgestone Corp. ADR BRDCY $18.75 3.7% Orbital Engine Corp. Ltd. ADR OE $2.33 3.3% Polaris Industries, Inc. PII $132.80 2.8% Deere & Company DE $87.63 -4.8% Arctic Cat, Inc. ACAT $36.91 -5.1% Harley-Davidson, Inc. HOG $67.30 -5.7% ARI Network Services, Inc. ARIS $2.82 -8.1% ArvinMeritor ARM $12.66 -13.2% POWERSPORTS BUSINESS WINNERS AND LOSERS MARKET WATCH Change 7/18/14 from 6/20 % Change Powersports Business Index 292.050 -1.69 0.57% Dow Jones Index 148.734 1.33 0.90% S&P 500 Index 134.641 1.04 0.78% Source: Wells Fargo Securities LLC 80 100 120 140 160 180 200 220 240 260 280 300 320 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 7/18/14 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 profit- ability the most is an effective menu presen- tation. This article will focus specifically on handling customer objections while keeping customers engaged and enthused during the menu presentation. So, you have just completed the menu pre- sentation without much luck in engaging your customer, and the customer says "NONE OF THEM" in response to your question about which option they would prefer. Now you must acknowledge the customer and transition to a discussion about the reason he/she is choosing "NONE OF THEM." Here is a transition that will work most of the time and get you to the point of a conversation: Business manager Brian Gallmeier: NONE OF THEM, so you are saying you would just like the base payment? Customer: That's right. PAYMENT OBJECTION BG: I understand. You know, most of our cus- tomers see value in at least a couple products on the menu. What is it about the platinum option that concerns you? CU: It's the price; I would just like the base payment. BG: Absolutely, I understand. (Empatheti- cally.) You know, if price were not an issue, which products would you be most interested in? CU: Well, if it were free, I might be inter- ested in the service contract. BG: OK, allow me just a couple minutes, I'd like to share with you some exciting facts about the service contract that might add some value for you. CU: OK, sounds good. BG: So, let's assume you did not purchase the service contract. Your payment would be $400 per month, correct? (Writing down in the left hand column). So, let's make those payments of $400, $400, $400, $400 (draw a line), and assume you've made 12 payments for your first year. Then $400, $400, $400, $400 (draw a line), and assume you are done with two years of payments. Your factory war- ranty has now expired, and you have an elec- trical problem that costs $950. (Write this in the right column under the last payment). Are you OK making that extra payment of $950? CU: No, I'm not, but I guess I could. BG: Great, so now make your third year of payments of $400, $400, $400, $400 (draw a DEALER FINANCIAL SNAPSHOT JUNE 2014 Overall Same Store Sales in June were up 3.3 per- cent for 1,420 ADP Lightspeed dealers. All regions were up, with the Northeast reporting the largest increase, up 5.4 percent from the year-ago month. Parts was the only department to see a decrease, down 2.2 percent, as four of the five U.S. regions were down. Major units were up 4.0 percent nation- wide, with the Northeast again seeing the largest increase, up 6.7 percent for the month. PARTS SALES 631 dealers were up, and 789 were down in parts. SERVICE SALES Nationally, 732 dealers were up in service, and 625 were down. MAJOR UNIT SALES In major units, 684 dealers were up, and 515 were down. NORTHWEST -2.9% Parts Department 0.3% Service Department 1.6% Major Units 2.5% Overall MIDWEST -4.3% Parts Department 5.8% Service Department 1.9% Major Units 1.1% Overall NORTHEAST 3.5% Parts Department 3.0% Service Department 6.7% Major Units 5.4% Overall SOUTH -3.0% Parts Department 3.1% Service Department 3.7% Major Units 3.2% Overall WEST -3.3% Parts Department 3.1% Service Department 5.7% Major Units 4.2% Overall UNITED STATES -2.2% Parts Department 3.4% Service Department 4.0% Major Units 3.3% Overall FOR MORE ON THE SAME STORE SALES DATA For more information on this report and other industry data, contact: adplightspeed.com/dataservices Handling objections during the menu presentation F&I SOLUTIONS BRIAN GALLMEIER line), and two months later you have a second issue. This time the estimate is for $1,500. (Write this down in the right column adjacent to the last payment.) Are you OK with this extra payment? CU: No, not at all, but I guess if I had to I can. (If customer can't make either payment, go to closing.) BG: So you have just paid over $2,400 extra for mechanical failures that would have been covered by a service contract, right? CU: I guess so. BG: Well, $2,400 over 60 months would have been an extra $40 per month, correct? You can see that the service contract is only $25 per month. Would you rather pay $25 or $40? CU: Obviously $25, but I do have a buddy who's a mechanic. (Without the mechanic friend, move to a signature and closing.) THE MECHANIC OBJECTION BG: That's great, I have some mechanic friends as well. Does your buddy work full time? CU: Yes, he does. BG: And tell me about his family. CU: Why is that important? BG: Well, assuming if he's like you, he has a wife, a couple kids in sports or activities, they have to eat together as a family, he works a full 40-hour plus work week. How do you think he would feel about ending his day, and then work- ing on your bike when he also has some things to do with his family? CU: Not that great. BG: So, can we assume your buddy is not able to get to your bike for at least a few weeks, maybe longer? CU: Probably. BG: And would you rather be riding, or waiting for your buddy to fix your bike? CU: Riding, of course. See Gallmeier, Page 19