Issue link: https://read.dmtmag.com/i/499779
OPINION FROM THE EDITOR www.PowersportsBusiness.com Powersports Business • May 4, 2015 • 15 What advantage do dealers who ask for the sale at least 70 percent of the time have over those who don't? What about those bro- chures that we all think nobody reads? What about the ratio of pre-owned to new registrations in the U.S. for 2014? Why should you as a dealer be interested in taking a share of the pre- owned pie? Further, how important is the role of your service writer in making your dealership's next sale? Those were just a handful of questions and top- ics we covered during the April Powersports Business webinar "Powering Profits: A Dealership Roadmap" sponsored by McGraw Powersports. McGraw wanted to drum up interest in the Power- ing Profits track that the company sponsors during the Powersports Business Institute @ AIMExpo, which will be held this October in Orlando. McGraw, known for its plethora of F&I products including extended service contracts and prepaid maintenance programs, also will help us provide two more webinars, in June and September, as we gear up for the 3rd annual PSB Institute @ AIMExpo. You can register for AIMExpo and the complimentary 32 hours of dealer training seminars at www.aimexpousa.com. Jim Woodruff provided insight on the wholesale side of the market during the webinar. As COO at National Powersport Auctions, Woodruff brought plenty of good news about the pre-owned motorcycle marketplace. Woodruff reported that auction volume increased by 11 percent in 2014 compared to 2013, including repossessed vehicles and dealer consignments that are liquidated through NPA's channels. Average wholesale pricing saw an 8 percent increase in 2014 compared to 2013 on a blended basis. More and more dealers are continuing to see the value in pre-owned, as NPA's dealer participation increased 2 percent in 2014 over 2013. "That's healthy," Woodruff said. "It's a sign of what's happening on the demand sign of the marketplace." Woodruff provided scores of insight, including data that shows the ratio of pre-owned registrations to new in the U.S. in 2014 is about 3.5 pre-owned to 1 new. "That's varied from 1.5-2:1 to almost 4:1 a few years ago. We view the 3.5:1 number as a good sign for the industry." PRE-OWNED 'OFF THE HOOK' We asked Woodruff to share what NPA is hearing at the dealer level. "One of the things that dealers are sharing with us is that new is doing pretty good, with certain brands doing extremely well, but particularly so far this year, pre-owned is off the hook. They're doing very well with it. In fact, some of the volume that we've seen typically come into the auction is being liquidated at retail at the dealership, which is terrific and another good sign for the industry," Woodruff offered. Woodruff also shared insights on the seasonality of wholesale pricing throughout various motorcycle seg- ments, and how dealers can capitalize as either buyers or sellers depending on the season, and available capital. In addition, Woodruff spoke about the recent trend of how OEMs are "increasingly endorsing pre-owned dealer efforts. It wasn't too long ago when an OEM would say, 'Well, we understand that you're selling used, but that competes with our new stuff and we're not really in favor of that.' Instead, we see folks like Harley-Davidson conducting educational seminars for the dealer network to get them up to speed about best practices in pre-owned and how to take advantage of that to have a healthy business. Why would an OEM do that? Well, at the end of the day, a strong secondary market supports a strong primary market. If a buyer of a Harley-Davison unit can't sell their used Harley when they're trying to buy a new one for much more money, they're going to be a lot less likely to pay top dollar for that new unit. So strong pre-owned pricing and a strong pre-owned market is actually helpful for a new market. It also brings new rider into the brand at a price point that they can afford." Mark Mooney, president of Mark Mooney Powers- ports Consulting, took to the sales floor in his presen- tation that focused on turning lookers into buyers. "Dealers who ask for the sale at least 70 percent of the time are plus-34 percent retails over dealers who don't, according to a Pied Piper industry study," Mooney told the attendees. And those slick brochures, with a business card stapled inside? "Dealers who offer brochures at least 75 percent of the time are plus-13 percent retails over dealers who don't, the same study showed. They're looking at your name and the name of the dealership over and over and over again as they flip through the brochure at home." And, Mooney implores, make sure every staff member can succinctly tell customers why your deal- ership is the better place to make their purchase. "Dealers who provide compelling reasons to buy from the dealership at least 70 percent of the time are plus-15 percent retails over dealers who don't," he said. Steve Jones, senior projects manager at Gart Sutton & Associates, spoke on "Increasing Service Sales" and offered that the service writer's role is critical when it comes to repeat customers. "The average customer buys seven motorcycles over their enthusiast lifecycle, and service is a huge influence on future sales. Sales sells the first bike, but service sells the next." Jones emphasized the importance of a reception checklist to maximize add-on sales opportunities. In fact, Jones provided attendees with a proven service reception checklist for motorcycles, ATVs and UTVs. Attendees were treated to more than 25 different items to check. And that's just a sliver of the information that was shared during the webinar, all with an eye on learning more at the 3rd annual Powersports Business Institute @ AIMExpo in Orlando, set for Oct. 15-16. PSB Dave McMahon is editor in chief of Powersports Business. Contact him at 763/383-4411 or dmcmahon@powersportsbusiness.com. 1. Yamaha unveils third concept bike based on refined dynamism 2. Report: OEM's CEO takes home $31.3 million in 2014 3. Spectator killed at rock crawling event 4. Analyst reports BRP talks utility UTV plans 5. Auto dealer purchases local Harley-Davidson dealership 6. Honda unveils 2015 exhibition model 7. City unanimous in support of 56,000 sq. ft. dealership 8. Roland Sands Design builds gem for Anthony Kiedis 9. Polaris unveils Slinghot SL SE at Daytona Bike Week 10. Analyst: Polaris off-road selling season somewhat slow 11. Harley-Davidson historical series on deck for Discovery Channel 12. Honda announces 2016 ATVs 13. Yamaha launches retail finance solution for 'younger, first-time buyers' 14. OEM sells headquarters for $44 million 15. Polaris VP of Slingshot, snowmobiles retiring The headlines above belong to the most frequently viewed articles from Powersports Business' three-times weekly e-news during the March 18-April 14 period. The number is based on the percentage of e-news viewers who clicked on the article's headline. To subscribe to e-news, go to www.powersportsbusiness.com/newsletter-signup. WHAT'S THE HOTTEST INDUSTRY TOPIC? Powersports Business blog ONLINE WITH POWERSPORTSBUSINESS.COM Leading industry executives and dealer consultants are among the contributors to PSB's blog. See below for recent blogs. Webinar series begins with eye on PSB Institute Visit powersportsbusiness.com/blogs PSB YouTube hits 100,000 views The Powersports Business YouTube channel surpassed 100,000 video views in late March. Recent videos include one PSB editor in chief Dave McMahon took at the Garage Brewed Moto Show in Cincinnati and another of a 2016 Yamaha Wolverine R-Spec walkaround. To access Powersports Business' videos, visit www.youtube.com/ powersportsbusiness. COLLEEN MALLOY Director of Marketing, ARI A major mobile milestone is just around the corner. Need more con- vincing that you need to think mobile? Local mobile searches are projected to exceed desktop searches for the first time in 2015. So, is your dealership ready? GARY GUSTAFSON President, G-Force Consulting Attention to detail in the specification will save money, time and reputation. A good specification incorporates the collective wisdom of marketing, indus- trial design, design engineering, field testing, compliance, service, assem- bly, quality and logistics. JENNIFER ROBISON National Retail Specialist, Tucker Rocky Merchandising is not just decorating; it's a strategy to grow sales. All success happens when we take the assets and liabilities, evaluate them and determine what we can do to be more relevant to customer needs. TOMMY ADY Founder, The WriteBack Once you know what your customers need, make sure that you've got the products available for every unit sold in your dealership. Don't overload your dealership up with products. If you're not sure what exactly you need, then ask someone what you're missing. DAVE McMAHON National Powersport Auctions COO Jim Woodruff provided webi- nar attendees with a look at wholesale trends in 2014, along with a look ahead to 2015.