How to Get the Best From Your Employees

There’s no doubt that today’s customers expect excellent service. And if you’re going to compete with large chains like Home Depot or Lowe’s, then your services needs to go above and beyond the call of duty.

Unfortunately, it can be hard to get your team on the same page. To them, working at your dealership might just be a job. So how can you motivate your team so that your customers are receiving the best service (and, in turn, walking through your door again and again)?

1. Define What Excellent Customer Service MEANS

Many owners want their team to provide excellent customer service. But, this means a lot of different things to a lot of different people.

Photo © by www.lumaxart.com

You need to write out exactly what “Excellent Customer Service” means to YOU. And, post the list somewhere where everyone on your team can see it.

Your team needs to see that the customer is the most important person in the business, even more important than you. Go over the list with them, emphasizing why each element is so vital to the success of the dealership. After all, if customers don’t continue to come through the door, then the doors are going to close. Once your team fully understands this, they’ll hop on board.

2. Make Sure You’re Hiring the Best

Your employees are often the first people to interact with your customers, which is why you need to focus on hiring the very best employees you can find.

When you’re hiring, make sure your short-list of applicants take a drug test before your final decision. This will let you know who shouldn’t be trusted to work in your store.

It’s also important for you to pay attention to their personality. Do they talk easily to others? Are they well-groomed? Do they smile often?

You should also check and make sure that they’re comfortable using a computer. Put them in front of your OPE point of sale software, and just go through the basics with them. The faster they are on the computer, the less time your customers are going to have to wait.

Remember, this person is going to be interacting with your customers, representing your business. Choose someone who’s going to make a great impression. A good rule of thumb is to hire slowly, and fire quickly!

3. Never Make Training a One-Shot Affair

Many employees get trained when they start at a dealership. And then, that’s it.

Successful dealerships know that training should be continuous. The more experts you have on your team, the more your customers are going to keep coming back for the priceless advice they’re giving out.

Training is essential to creating a great team. Contact your suppliers and see if they can come out at least once per year for training sessions.

4. Make Sure Your Team Understands Their Worth

Does your team understand how valuable they are. Probably not.

So, let them know regularly what a great job they’re doing. Remind them, on a personal level, why you hired them. Hold them accountable for your dealership’s goals.

The more your team sees how much you value them the more pride they’re going to take in their work. They’ll feel a sense of ownership in the dealership which will, in turn, show up in the way they treat customers.

Last Word…

Getting your team on the same page as you when it comes to customer service isn’t that hard. All you have to do is give first: give them training, support, and a clear list of your expectations. Make sure they understand that you value them, and keep reminding them on a regular basis why you hired them. The more pride they feel in your dealership, the better they’re going to perform.

Are You Measuring These Key Metrics In Your Dealership?

When was the last time you looked at the gross profit margin in your service department? Or, for that matter, how long has it been since you measured the profit margin of your showroom compared to your available square footage?

It’s easy for owners to get so wrapped up in the day-to-day workings of their dealerships that they neglect to look at key metrics on a weekly or monthly basis. But, these metrics exist for one purpose: to help you measure the health and forward progress of your business. When you go without looking at them, it’s like trying to sail a ship without a rudder or a map. In other words, it’s not something you want to do unless you actually want to get somewhere.

Successful dealerships use quality outdoor power equipment office software to help them measure these key metrics. OPE office management software can give you access to vital information about your business in just minutes, and can drastically shorten the “information gathering” time you’d spend without it.

So, what should you be looking at on a weekly basis to make sure you’re meeting your goals for the year?

The most important performance indicator that you need to be looking at weekly is your gross profit margin on parts, whole goods, and service. If you do rentals in your dealership, then you also need to look at your gross profit margins in this department as well.

Determining where you need to be will vary slightly with each dealership, but in your service department you should be aiming for a gross profit margin of 50%-55%. Your parts should be 48%-53% for OEM, and for aftermarket 60%-70%.

When it comes to your whole goods, you need to analyze this number as it’s compared to the total square footage of your showroom space.

Another key metric you should be looking at is the management cost per dollar sold in each department. Some dealerships are very small, which means that owners are also working as managers. If this is the case in your dealership, then you need to take into account your salary just as you would a manager that you had working for you full time.

When it comes to the metrics you need to be looking at on a monthly basis, parts aging and inventory turns are probably the most important. Now, doing this without OPE office management software is going to be challenging, which is why so many owners find that investing in quality software is more than worth it.

The reason why it’s so important to look at these two metrics monthly is because it’s so easy to let parts and inventory slide through the cracks, especially during the busy seasons. Most dealers only look at this information at the end of the year, since that’s when they do the bulk of their buying.

Staying on top of the key metrics of your dealership is easy if you have quality software to do the work for you. Even if you don’t, however, it’s vital you spend the time compiling this information. These metrics show you clearly how your business is doing. If you discover that you have aging parts and falling margins, you can take action to fix the problem before things get out of control. And that can make the difference between a thriving, and failing, dealership.

Two Unique Strategies for Increasing Sales

In this economy dealers are scrambling for ways to increase sales so they don’t have to close their doors. Here are two strategies for doing just that!

Strategy 1: Turn Employees into Owners

It’s the question every dealer wants an answer to: “How can I get my employees to do what I want them to do, and keep them motivated to work hard?”

Unfortunately, we’re all out of magic wands. But the good news is, there’s another solution!

That solution is this: you’ve got to get your team thinking like an owner. If you treat them like an employee then they’ll act like an employee. After all, the harder they work the richer you get. So where’s their motivation?

You need to get them involved in the success of the business so that they’re rewarded when the business does well. This creates a sense of ownership.

To do this, you need to create a performance based incentive program that includes not only your sales and service departments, but also the rest of your office staff so all employees are involved.

If you want to really set up a successful performance based incentive program then it’s important to pay out to your team at least once a month, if not every two weeks. This will keep them excited, and remind them that rewards really do come if they work hard to better the dealership.

Many dealers only pay out at the end of the year, but this is a mistake. Paying out once per year won’t get your team excited, because the reward is too far off, too remote.

So, how will performance incentives help make money for your shop?

Well, if your team knows they’re going to get a financial reward for a set goal, like higher efficiency or increased sales, and they know they’re going to get that reward in two weeks, then they’re going to work extremely hard to hit that goal. This means that your dealership will have lower costs and/or increased sales because of their efforts.

When they profit because of the dealership’s success, then they’re going to feel just like you. They’re going to feel like an owner, and it won’t be just a “job” to them.

Having reliable outdoor power equipment office management software is the best way to keep track of the metrics that measure your employees’ performance. These metrics could be efficiency, weekly sales, or even lowest number of customer complaints. Tracking how well your team is performing is the best way to ensure you’re paying them the correct bonus.

Strategy 2: Increase Your Sales with Family Events

One of the easiest ways you can help increase sales in your dealership is by holding events geared toward your customers and their families. Family events work best in dealerships whose customer base is 70% consumer and 30% is commercial.

You could plan an event like “family fun days”. This is essentially a party you’re throwing for your customers, and their kids. Incorporate balloons, scavenger hunts (you can do these indoors in winter!), games, demonstrations…use your imagination!

Holding a family event on Saturdays is a great way to get people into your store. And compared to what you might spend on ads or commercials, it’s an incredibly cheap way to market to your customers.

Bring out your grill and have some of your employees cook hot dogs and hamburgers. Have plenty of soda and water on hand, and some brownies for dessert. You could also rent an inflatable bouncing tent for the kids (which would leave their parents free to shop!)

It would also be smart to run a special “family sale” just for the event.

Family events are great for building rapport with customers and making them see that your dealership is truly part of the community. And in this shaky economic climate, that’s a marketing strategy that’s just going to pay off.

Saving Money with Strategic Inventory Management

Any outdoor power equipment dealer knows that when it comes to making a profit, inventory management is vital. And in a down economy it becomes even more important. By strategically managing your inventory, however, you can make a big difference in your bottom line.

During the slow time of year, your parts inventory should only be 20% of what your inventory was at peak of the season. For instance, if you carry $300,000 in inventory during peak summer then your off-season inventory should only be around $60,000.

Manufacturers used to be terrible at getting dealers parts on a short notice, so most dealers overstocked so they could service customers better and do repairs. Now, however, A-level manufacturers have a fill rate of 93-95%, and there’s no need to stock parts that you can order in 24-48 hours. We know that dealers love the idea of having the right part in stock every time a customer needs it, but it’s just not a smart practice in a down economy like this one. Even manufacturers don’t have a fill rate of 100% because it would just cost too much money to stock every arcane part. So, your dealership shouldn’t have that goal either.

To save money going into 2010 dealers should change their expectations and shoot for an 80%-85% fill rate at the counter. Doing this helps reduce your costs in inventory. Many dealers structure their parts department to primarily serve the service department. So, in many dealerships the service department becomes the biggest customer of the parts department, buying 60% or more of the parts in the existing inventory.

So what’s the secret to getting rid of your slow moving inventory?

The key is to create a good stocking point. One effective strategy is not to put a part in stock unless you get 3 demands for it within 70 days. And, this includes demands made from the service department. You can monitor these demands easily with good OPE business software.

Another mistake that dealers often make is ordering too many parts to stock when demand is going up. For instance, if you sell 4 parts one season and then 12 the next, you might be tempted to keep at least 6 of those parts in stock. But you have to analyze what’s happening with your customers. The reason they’re buying those parts in the first place is because that particular product is nearing the end of its lifecycle. This means demand is going to go up, and then drop off as that product is replaced. If you have several of those parts in stock, you might be stuck with them.

Overall, it’s vital not to let your parts inventory big in the beginning. It’s important to be as aggressive as possible with the manufacturers to get every part returned that you can, and keep your existing inventory low during the off-season. Investing in good OPE business software can help you strategically manage your inventory so that your dealership thrives during the upcoming year!

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!