Issue link: https://read.dmtmag.com/i/410969
FINANCIAL I often refer to the sales and finance managers as the Mom and Dad of the dealership. There is no other management relationship in the deal- ership that requires more teamwork to get a single task (a motor- cycle down the road) accomplished. Much like Mom and Dad, they must be on the same page, among other things. What can be done to help this relationship be the strongest it can be? First, they must want to work together. These two individuals or departments, depending on the size of the dealership, must want to get along. Each has to agree always to support the decisions of the other in front of the staff. They may not always agree, but that discussion should go on behind closed doors. If they discuss and come to a different conclu- sion, then they must make the change in unity. One can NEVER side with a salesperson over the other manager. If a salesperson comes to one complain- ing about the other — I'm sure you have seen this — simply acknowledge the complaint and respond with something along the lines of, "I'm sure there was a good reason behind what he/she did. I would be happy to ask." This shows that you want to get the salesper- son answers without siding with them against the other manager. The manager who is being questioned should then address this with the salesperson. You want to make sure that the salesperson understands that it is OK to ques- tion a decision, but they should bring it to the manager with whom they have the issue. The managers' goals must be the same. If they both strive to sell as many bikes as possible with as much finance profit as pos- sible, then they will work together to achieve this goal. To put it in plain English, they both need to get paid from the finance depart- ment profit. A successful finance department needs a sales manager who understands finance and is focused on leaving the door open for them to make money. Pay plans that reward the behaviors you want will always produce superior results. The finance manager needs to be involved in sales meetings. When the finance manager is included in sales meetings, the staff sees that both manag- ers have a say in how the department runs and they are in full agreement on all decisions. Both managers should also be able to step in for the other in a pinch, so it is important that they hold these joint meetings. The finance manager should be included in all dealership manager meetings. Actions speak louder than words. If the finance manager is not welcome in the man- ager meetings, then the sales staff will not view that person as a true manager. When the finance manager is not viewed as an equal in charge of his or her own department, it erodes the level of respect he or she gets from the sales staff and makes it harder for them to do their job as Mom or Dad. Work with their strengths. Anyone who has grown up in a house with two parents knows that they are not equally good at everything. One is better at fixing things around the house, and the other may be better at yard work. Each person in this relationship needs to use his or her strengths to achieve success. There is nothing wrong with the sales manager rehashing deals at the bank, even though that is traditionally a finance department function. There is also nothing wrong with a finance manager who 12 • November 3, 2014 • Powersports Business www.PowersportsBusiness.com The sales and finance manager, or Mom and Dad STOCK MARKET WATCH DEALER FINANCIAL SNAPSHOT SEPTEMBER 2014 September proved to be a positive month nationwide for 1,452 CDK Global Recreation dealers. All regions were up in all departments, with the service depart- ment seeing the largest increase for the country. Service was up 10.8 percent nationally, with the Northwest seeing the largest increase, up 14.3 per- cent for the month. Major units were up 9.8 percent for the U.S., as both the Northwest and the West saw increases of more than 14 percent. PARTS SALES In parts, 788 dealers were up, and 664 were down. SERVICE SALES Nationally, 852 dealers were up in service, while 529 were down. MAJOR UNIT SALES In major units, 746 dealers were up, and 507 were down. NORTHWEST 12.4% Parts Department 14.6% Service Department 14.3% Major Units 14.8% Overall MIDWEST 0.9% Parts Department 7.8% Service Department 4.1% Major Units 4.1% Overall NORTHEAST 1.7% Parts Department 6.0% Service Department 12.0% Major Units 9.0% Overall SOUTH 3.3% Parts Department 12.4% Service Department 8.3% Major Units 8.3% Overall WEST 0.2% Parts Department 13.3% Service Department 14.2% Major Units 12.6% Overall UNITED STATES 2.5% Parts Department 10.8% Service Department 9.8% Major Units 9.1% Overall Stock Price Percent Company Ticker 10/10/14 Change ARI Network Services, Inc. ARIS $3.21 6.6% Brunswick Corp. BC $39.86 -10.3% TCF Financial Corporation TCB $14.74 -10.8% Dover Corporation DOV $75.76 -11.7% Intl. Speedway Corp. Cl. A ISCA $28.71 -11.7% Harley-Davidson, Inc. HOG $56.46 -12.4% ADP ADP $72.66 -12.5% Arctic Cat, Inc. ACAT $31.23 -14.8% Marinemax, Inc. HZO $15.84 -16.4% ArvinMeritor ARM $9.93 -24.8% POWERSPORTS BUSINESS WINNERS AND LOSERS FOR MORE ON THE SAME STORE SALES DATA For more information on this report and other industry data, contact: cdkrecreation.com/dataservices See Dodds, Page 13 MARKET WATCH Change 10/10/14 from 9/12 % Change Powersports Business Index 320.238 -22.19 -6.48% Dow Jones Index 143.898 -3.86 -2.61% S&P 500 Index -129.735 -5.41 -4.00% Source: Wells Fargo Securities LLC 50 100 150 200 250 300 350 2/25/14 3/14/14 4/11/14 5/2/14 5/23/14 6/20/14 7/18/14 8/15/14 9/12/14 10/10/14 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 and the removal of Orbital Engine Corp. Ltd. ADR (OE) on 8/15/14. F&I SOLUTIONS The sales and finance manager, or Mom and Dad STEVE DODDS