Issue link: https://read.dmtmag.com/i/551693
FINANCIAL Ever felt like you just can't find the right person to fill your finance office, or that the current person is sim- ply under performing? You probably hear "I am doing the best I can" in response. This might or might not be true, but for right now let's assume it is. So many factors affect the finance office's profitability that sometimes finance isn't the problem when it comes to low production. One of the biggest factors that can affect finance profitability is the mood of the cus- tomers as they enter the office. So I have to ask: What is your customer doing while they are waiting for finance? If they are sitting around waiting, then I can say with confidence that many customers have lost that sense of excitement in the 20 minutes (sometimes longer) they have been waiting on finance. First, can we speed up the approval process? In most cases, the answer is no. Sec- ond, how do we keep them excited between when the credit application is approved and when finance is ready for them to sign? Some dealers call it the "dealership tour;" some dealers call it the "hot lap," and others call it their "pit pass." Call it what you want — this is a tour of the dealership designed not only to keep the customer excited, but also to give each department a chance to meet the customer and sell themselves. For the purposes of this article, I am going to break the "dealership tour" into four stops. You might have separate parts and accessories departments or an apparel department, or you might not have service do the bike delivery — sales might provide that part of the tour. You will need to lay out your tour as it works in your dealership. FIRST STOP — FINANCE MEET AND GREET Finance meets the customer to get the tour started. The primary reasons we want to start with finance meeting the customer is to get the finance manager involved early in the sale. This gives the finance manager a chance to build rapport and keep the cus- tomer in the loop as to what is going on and how long it might take. We have also found that if the finance manager starts the tour, we get more consistent participation in the tour process. SECOND STOP — PARTS AND ACCESSORIES Next the customer is introduced to a staffer in the parts and accessories department. The staffer is now given the chance to show the customer around their department and find out if there is anything he or she needs in order to enjoy the riding experience. This also gives the P&A staffer a chance to plant seeds about anything that the dealership wants to promote. Many dealerships take this chance to mention their maintenance program to every customer. THIRD STOP — SERVICE AND BIKE DELIVERY After parts, the customer is introduced to a member of the service team. This is a chance for service to talk with the customer about the service that is needed on their new motorcycle, ATV, etc. This is also a great time to schedule the first service and, again, for service to mention programs the dealership wants to promote. If service is doing the customer's bike deliv- ery, service would also do that at this time. If the salesperson is performing that function, 12 • August 17, 2015 • Powersports Business www.PowersportsBusiness.com Sometimes it's not finance that's the problem STOCK MARKET WATCH DEALER FINANCIAL SNAPSHOT JUNE 2015 Same Store Sales by CDK Global Recreation dealer- ships were up 8.1 percent overall from June 2014 to June 2015. The Northwest, West, Midwest and South regions all experienced positive increases in all categories. The Northeast saw the only decrease, down 4.2 percent in parts. The West saw the largest increase in overall sales, up 14.5 percent. The North- west had the highest increase in major units with a 16.5 percent increase. PARTS SALES 778 dealers were up in parts, and 736 down. SERVICE SALES Nationwide, 877 dealers were up, while 575 were down. MAJOR UNIT SALES In major unit sales, 809 dealers were up and 555 down. NORTHWEST 2.6% Parts Department 8.9% Service Department 16.5% Major Units 11.2% Overall MIDWEST 1.0% Parts Department 0.3% Service Department 2.3% Major Units 2.3% Overall NORTHEAST -4.2% Parts Department 6.8% Service Department 3.6% Major Units 2.9% Overall SOUTH 1.5% Parts Department 8.2% Service Department 11.4% Major Units 10.3% Overall WEST 7.0% Parts Department 11.7% Service Department 15.4% Major Units 14.5% Overall UNITED STATES 1.6% Parts Department 7.0% Service Department 9.2% Major Units 8.1% Overall Stock Price Percent Company Ticker 7/24/15 Change Assurant, Inc. AIZ $73.06 6.6% Carlisle Companies CSL $102.44 1.3% ARI Network Services, Inc. ARIS $3.19 -0.3% Brunswick Corp. BC $51.98 -1.1% Harley-Davidson, Inc. HOG $58.30 -1.3% TCF Financial Corporation TCB $16.95 -2.1% Speedway Motorsports, Inc. TRK $21.65 -3.5% Honda Motor Corp. ADR HMC $31.09 -4.3% CDK Global CDK $51.59 -5.5% General Electric Co. GE $25.75 -5.5% POWERSPORTS BUSINESS WINNERS AND LOSERS MARKET WATCH Change 7/24/15 from 6/19 % Change Powersports Business Index 308.270 -18.94 -5.79% Dow Jones Index 152.808 -3.89 -2.48% S&P 500 Index 141.545 -2.07 -1.44% Source: Wells Fargo Securities LLC 100 150 200 250 300 350 400 11/7/14 12/5/14 1/2/15 1/23/15 2/20/15 3/13/15 4/10/15 5/1/15 5/22/15 6/19/15 7/24/15 PSB INDEX VALUE DOW JONES INDEXED S&P 500 INDEXED 0 STOCK MARKET ACTIVITY F&I SOLUTIONS FOR MORE ON THE SAME STORE SALES DATA For more information on this report and other industry data, contact: cdkrecreation.com/dataservices *The Powersports Business Index has been adjusted to reflect the addition of CDK Global (CDK) on 12/5/14. Ever felt like you just can't find the right person to fill your finance office, or that the current person is sim- STEVE DODDS See Dodds, Page 13