5 Ways To Increase Sales With Your Dealer Management Software

With the economy on shaky ground rounding out 2009, every business owner across the country is trying to do two things right now: increase sales and decrease expenses.

Those two are pretty much the keystones for staying afloat in a downturn.  But, how do you do it?

It can be tempting to hire a business coach or productivity expert to help you figure it out, but you really don’t need to.   You’ve got a business expert in your store already; you just might be looking in the wrong places.

We’re talking about your dealer management software (DMS).  Surprised?  Well, you shouldn’t be.  Lots of business owners look at their DMS as something that helps them ring up customers and track costs.  A tool, and nothing more.

But your DMS system can help you transform your business, if you know how to use it.  It can help you trim costs, manage inventory, increase your sales, and improve productivity.  All of which adds money to your bottom line.

In the next few months we’re going to be focusing on how dealers can use their DMS system to thrive into the new year.  This month’s focus?  Increasing sales.

1. Increase Sales With Add Ons

Most good DMS systems are going to have an “Add On” feature that reminds your employees to upsell items upon check out.

Here’s how it works: say one of your customers buys an ATV.   If your employee forgets to mention snowplows or gun racks while they’re still out on the sales floor, your DMS system will remind them upon check out.   As soon as that employee scans the ATV tag, a small screen will pop up that lists a few closely related items they can suggest to the customer.

Utilizing the Add On feature is an easy way to increase your sales.  The only downside is that it takes time to input cross-sell items into the system.  But once you’ve told the system what products you want it to “add on” for which items, you’re done.

2. Use Your DMS To Track Lost Sales

We’ve all done this song and dance before.  A customer walks in and says, “Do you have any Arai Quantum Series helmets in stock?”  Sadly, you don’t stock Arai helmets, so the customer walks out the door empty handed.

What you don’t know is that this is the third customer this month to walk in looking for that particular type of helmet.  Because you don’t stock it, you’ve now let around $1,500 walk right out the door.  Yikes.

If you had the Lost Sales tracking feature enabled in your DMS system, however, you’d know how much money you were losing by not stocking that particular product.  And, you’d know that you need to start stocking it asap before you lose any more money.

Tracking lost sales is a great way to increase your profits, simply because it keeps you abreast of what your customers are really looking for.  And when you give them that, you make money.

3. Use Your DMS To Created Bundled Kits

Lots of businesses use this technique, and if you haven’t yet tried it in your own dealership then now’s the time to start.

Bundled kits are a great way to increase sales.  Basically, you package two or three products together to sell for a “special low price”.  Need an example?  Well, think of fast food value menus, or “dinner and a movie” packages from your local restaurant.

As a powersports dealer, you could come up with some really creative packages for your customers.  You could sell a snowmobile along with a pair of gloves and a helmet at a special low price.  Or you could do a lower-priced package of goggles, jacket, and boots.

You’re limited only by your imagination here.  The great thing about bundling products is that everyone wins: you sell more products, and your customer saves money.

Your DMS system helps by allowing you to sell the bundled kit all at once.  Your employees won’t have to ring up each item individually and then do a discount, which only opens the door for mistakes and unhappy customers.  Your DMS system can ring up a kit in one fell swoop and get your customers out the door fast.

4. Send out Specific Offers With Your DMS

Everyone has sent out “20% off” coupons before, or had “Buy One, Get One” deals.  While these work, they’re not the best way to increase sales.  Why?  Because they’re too generic.

Wouldn’t it be more effective to customize a coupon for every customer that shops in your store, based upon what they’ve bought in the past?

Sure it would.  But, it would take weeks to do it, right?

Well, not with a good DMS system.

Your DMS system can help you create a highly customized digital mailing that can really help skyrocket your sales.

For instance, if Jane Doe bought a snowmobile from you a few months ago, you could send her an email thanking her for her purchase.  You could also include an e-coupon for 20% off her first tune up, and 10% off a new pair of gloves.

Customized mailings can be done in a snap with your DMS system.  And you might be surprised at how much they can boost your sales.

5. Increase Sales By Using A Layaway Program

A few years ago it seemed as if Layaway was going to amble down the same path as the wooly mammoth.  In short, it was headed towards extinction.

In today’s economy, however, layaway programs are seeing a dramatic resurgence.  People can no longer rely on easy credit like they used to.  If they want something expensive, they now have to save up for it.

If you want to increase your sales, then you can help them do this by reviving (or starting) your layaway program.  Your DMS can be instrumental in this by tracking who has what on layaway, what they’ve paid on it, and when it’s due.  Without a system to track all this information, you layaway program can become an organizational mess.

Your DMS system is far more than a tool.  If you take advantage of everything it has to offer, it’s much more like a savvy business partner.  And in today’s economy, that just might be exactly what you need to thrive.

How to Sell More to Your Current Customers

Sure, it’s vitally important to constantly attract new customers—before your competitors do. But don’t ignore your current customers or take them for granted.

It’s far easier and less expensive to sell more items, more often, to people who know you, than to attract and sell even once to strangers. And when you make use of some of the features of dealer management software, the process of getting repeat sales can be surprisingly fast, easy and economical.

Consider direct mail, for example. With detailed point-of-sale (POS) software, you already have the most important part of any direct mail campaign: the mailing list. You have each customer’s name, mailing addresses, e-mail address (be sure to ask for it), purchasing history, and other relevant data. So you know what activities they’re most interested in, and which additional products, accessories and services they’re likely to want or need in the near future.

But don’t assume they’ll automatically think of your dealership when they’re ready to buy. They may be as much aware of your competitors as you are—or even more so, if they often visit them to buy or just look around…and you don’t.

There are several ways for dealers to use direct mail to make additional sales to current customers, and also to attract new customers (once you obtain their names and addresses and add them to your database).

One of the most popular and well-proven ways is to send out a newsletter on a regular schedule: monthly, bi-monthly or quarterly. Or even semi-monthly during peak seasons. You can have your newsletter printed and mailed, but it’s far more economical and faster to send it as an e-mail or e-mail attachment.

Whether you have it written in-house or by a freelance writer (to control the cost, pay him or her by the page, not by the hour), you can probably obtain some of the content—articles, photos, new product info, etc.—from suppliers. You may also be able to obtain permission to use excerpts of articles published in certain powersport magazines.

To encourage readership, your newsletter should be written in a friendly, helpful way, as if you were talking one-on-one to each customer. Tell them about the new products that just came in, provide helpful tips, include a money-saving offer, and perhaps have a Q&A or FAQ section that answers common questions and addresses seasonal concerns. Avoid hard-sell promotional language; it can turn readers off.

If producing a newsletter seems like too much effort (it can actually be fun, once you get past the first issue), at least send out half-page or one-page e-mails on a regular basis. Use them to announce new products and services, and to promote upcoming in-store events. Direct marketing experts will tell you that every advertising message you send out—regardless of the media—should have an offer…a reason for the customer or prospect to respond by a specific date.

In most cases, this would be a discount off the regular price. But it might also be a “free gift” with purchase. (Cosmetics counters in department stores do this all the time.) Or, if appropriate, you could offer free tickets to a seminar or product demo, or a free three-month subscription to a magazine.

4 Free Ways To Advertise and Grow Your Business

Although the economy is slowly struggling back to its feet, there are plenty of businesses that are still hurting pretty bad. Which means that finding money for advertising might be out of reach for many business owners right now.

The old adage holds true, however: it’s when times are tough that you really need to advertise. But, that’s exactly when you don’t have the money to do it.

So, what can you do? Well, you have to get creative. Here are some no cost advertising ideas to help get you started:

• Start Writing- If you own a business, then you’re probably an expert at something. Do you install geothermal heating units? Landscape yards? Have a craft store? How could you use your expertise to help your customers? Write informative articles and submit them to your local paper or magazine, trade publication, or professional organization. Make sure your business and contact info is mentioned at the bottom. You might also want to research submitting articles to online directories; this can be a great way to spread the word about your business.

• Teach A Class- You’d be amazed at how much business teaching an adult education class can bring in, especially if you have a service business like financial planning, accounting, landscaping, etc. Your local library, community center, YMCA, or even community college is probably looking for instructors. This will not only give you “expert” status to your customers, but also expose you to plenty of new people who need your help (otherwise, why would they be taking your class?)

• Inspire Referrals- If your customers send other customers your way, are you thanking them for the increased business? Most business owners don’t. But, this is a missed opportunity! Tell your customers that you’ll give them a reward (a free service, free product, or a hefty coupon) if they send more business your way. It’s a win-win situation!

• Hold a Contest- Want to get people into your store or to your website? Then host a contest! Give away product you’re selling, or a set number of hours of your service. But, make sure you tie the contest in with something you’ll get that will help you for a longer time. For instance, for every $10 of sales during the month, customers will get an entry into the contest. Or, for every person they sign up for your monthly newsletter, they’ll get an entry.

There’s no doubt that business owners have to try harder to make sales right now, but you definitely don’t have to spend a fortune to get people in the door. Getting creative and being willing to think outside the box of “traditional” advertising is your best strategy.

How To Get the Most Out of Networking Groups

When it comes to networking, many business owners groan. They immediately picture “schmoozing” their way through Chamber of Commerce meet-and-greets, making small talk while they hand out business cards. Yikes.

Although networking can be a chore if you’re pressed for time, it’s also an incredible way to garner new clients and increase business. If you do it right, that is.

Want to start getting the most out of your networking group to make it worth your time? Then follow these tips:

• Stop Complaining- If you’re spending your valuable networking time “groaning” about how bad business is, hire a therapist. Other business owners are having the same troubles, and it’s only a turnoff if you do nothing but complain. Instead, talk about how optimistic you are that things are going to improve, and see if you can offer others advice on how they could improve their business.

• Commit To What You’re Doing- If you joined a service like BNI (Business Networking International) then don’t show up like it’s a “chore” and barely listen to others in the group. Networking is all about relationships, so take the time to really get to know the people around you.

• Give Before You Get- Many people approach networking with a “what’s in it for me?” mindset. But, this is the exact opposite approach you should take! If you give first (advice, referrals, etc.), then you’re guaranteed to get later on.

• Follow Up- It’s amazing how many people fail to follow up on a referral once someone in the group gives them one. If they care so little, why are they bothering to network in the first place? If someone gives you a referral, call them within 24 hours. And, call the person who passed it along to you and thank them for their consideration. You also might want to send them a thank you card as well.

• Listen, Listen, Listen- If you spend tons of time talking about yourself, you’re not going to get very far. Focus on the other person instead: ask questions, and make sure you repeat their name at least two or three times. People love to hear their own name, and this will make you stand out. Instead of being “that person who talked about themselves the whole night”, you’ll be remembered as an empathetic and understanding listener.  A much better impression, right?

It’s truly amazing how just one referral can start a chain of events that can transform your business. Business networking is a valuable tool that you can easily use to find new clients, but to get the most out of your group you need to do it right. Focus on others first, and watch your business grow!

How Powersports Software Can Help You Save Time and Money

Photo © by Jeff Dean

The rapidly growing popularity of powersports in recent times, especially in Europe and North America, has captivated the imagination around the world. This is good news for powersports dealers who depend on this trend for business, but more business means nothing for an entrepreneur who cannot manage the workflow, which is where powersports software comes in to give your business the flexibility to expand with demand.

Since the main expenditure for a dealer in the powersports industry is manpower, if a savvy dealer can find a way to cut back on this, profit margins would grow. This is where powersports software comes into play. So what is it? And how does it help dealers manage their businesses more efficiently or assist in cost-cutting measures?

For one, it helps to reduce your manpower requirements by automating inventory controls. This translates into a more functional and efficient parts-and-warehouse management system, allowing the organization to cut down on workers that conventionally manage said systems manually.

Software also assists dealers and service centers in managing their service-and-repair departments in a more efficient manner, centralizing the system instead of depending fully on human resources to relay inter-service information. Even a simple walk across the lot is a waste of time when a simple message can be communicated with the click of a button, but what software management systems provide is FAR more complex and automated than the relaying of a message.

In return, the company can afford to hire fewer workers, which means lower expenditure and higher profits. The software helps you save time on deals and smoothes the transfer of money in transactions, allowing the dealer to focus on closing more sales.

These kinds of management systems are fairly common in the automotive world and have assisted most of the major automotive players to become the giants of the industry. Companies should expect the same from the software equivalent of the powersports vehicles industry.

Most, if not all, of the major powersports vehicles manufacturers are already utilizing such software, allowing smaller dealers to connect with them through the Internet. The ability to instantly deal with manufacturers is indispensable, saving time and money for both parties, and allowing them to keep up with the rising demand for their products and services.

For instance, one can have access to a manufacturer’s latest vehicle pricing and part numbers as they are updated, increasing the accuracy and reliability of your inventory systems. This simply wouldn’t have been possible with traditional accounting practices. The software also records other parameters such as sales invoicing, purchase orders and marketing tools, so just about every business function is automated and streamlined for your benefit.

In these uncertain economic times, it is crucial to have an edge in terms of business management and strategies, and technology is often the best way to find that edge. By utilizing the potential of powersports software, you’ll always be one step ahead of your competitors who just haven’t caught up with the time.