6 Ways to Profit From Slow-Moving Inventory

1. Use Tools to Forecast Better
One of the most valuable tools you can use as a dealer is your power sports tracking software. This tool can help you forecast next season’s expected inventory demands so you can accurately predict what, and how much, you’ll need.  Investing in quality power sports tracking software will help eliminate inaccurate ordering.

2. Sell In-Season
It’s easy to ignore slow-moving inventory when you’re busy. But when you put off thinking about that inventory until the off-season, the slow-movers are obsolete. Unloading it during the off-season is going to be even harder.
You need to focus on your slow-movers during the peak of your season. What can you do?
Put that slow-moving inventory right in front of your customers. Build a display so people see it when they walk in. Do some demos. Put it on sale. But do it when you have a chance of selling it, not when you don’t.

3. Barter
If you have some valuable inventory that just won’t seem to go, why not think about bartering it? You could barter equipment or parts for services such as plumbing, cleaning, electrical work, or even web design.

4. Sell It Online
Does your dealership have an eBay store? If not, it should. Selling parts and equipment online is a great way to unload slow-moving inventory. After all, it may be snowing at your store, but people are still riding bikes and having fun in Florida!

5. Offer Cash to Your Team
Your sales team is your first line of defense when it comes to unloading inventory. So, bribe them. Offer them an immediate cash reward for every slow-moving item they sell (items you’ve designated, of course). The key to making this work is to pay your employee in cash the moment that product leaves with the customer.
Tacking on that “bonus” to their paycheck isn’t as immediate or rewarding as cash in their pocket. Paying your team first will keep them far more motivated to get that inventory out the door.

6. Bundle It
You can use slow-moving inventory to sweeten the pots for other products you want to move. Bundling slow-movers with high-profit or fast-moving products is a great way to spur sales and get it out the door.

Ideal F and I Module Selected as a Nifty 50 Product by Powersports Business Magazine

Ideal’s new, fully-integrated F&I module has been selected as a 2011 Nifty 50 product by Powersports Business magazine and will be featured in its February 7 issue.  The module, developed specifically for the powersports industry, will streamline your sales process by integrating your F&I transactions and reports into Ideal’s Dealer Management Software including Customer History, Accounts Receivable, and optional Accounts Payable and General Ledger modules.

“This is a great honor,” said Development Manager Kurt Meyer.  “We worked diligently with F&I consultants and dealers in the powersports industry to create one of the top products available for powersports dealers.  By utilizing Ideal’s dealer management software with its fully integrated F&I module, powersports dealers will save time, increase unit sales, and be able to provide a full one-stop shopping option for their customers.”

Ideal’s F&I includes several powerful features guaranteed to boost profits for powersports dealers.  Its exclusive F&I Menu Selling options enable dealers to increase motorcycle, ATV, snowmobile, and personal watercraft unit sales by an average of 10-15% with different package and incentive options that they can work into a deal.  Dealers can also quickly and easily print standard forms including title & registration, odometer statement, disclosures, insurance, warranties, etc. – and customize forms to their specific needs.

“The ease of making money with a quality dealer management system and integrated F&I module has become a reality with Ideal,” said F&I Dealer Services Consultant, Troy Simon.  “You can easily handle an F&I deal from start to finish by utilizing an easy-to-use menu for clients to select F&I product options, pricing, and payment.  Ideal also makes printing forms a snap and contains reporting options that enable you to easily research a deal’s history and view details just like the day you sold the unit.  It’s a great product!”

Nifty 50 products are selected by editors from Powersports Business magazine as well as its sister consumer magazines in the powersports industry.  In order to be elligble, products must be new or substantially improved from previous years, or ready for delivery in the calendar year 2011.

For more information on Ideal’s F&I module and to request an online demo, visit http://www.idealcomputersystems.com/f-and-i.html or stop by booth #5039 at the 2011 Dealer Expo, February 18-20, in downtown Indianapolis

4 Ways to Rally Your Dealership In a Down Economy

1. Be Open
Rumors often start when staff doesn’t know what’s going on. Be honest with your team and openly discuss how the dealership is doing. The more your team knows, the less likely they are to come up with their own ideas about how the dealership is doing.It’s also important to involve your team in the planning process. When they feel they have ownership of the problem, and that a solution could be in their hands, they’re going to feel empowered to take action.

2. Focus On Your Managers
Middle managers have a tough road. They feel pressure from you, the owner, to perform. And they hear the grievances and complaints of the staff.Make sure you give your managers the support they need to do their job and stay positive. They need encouragement and good information just as much as your staff.

3. Invest In Training
If times are slow, now might be a great time to train your staff on some new skills that can help boost revenue.For instance, has your sales staff ever had any sales training from an outside consultant? If that’s out of your budget right now, think about buying some sales books they could read during the day when business is slow. A $100 investment in books could pay off quickly with some new techniques!
You might also think about training some of them to better use your power sport store software. If they know how to run reports or place inventory orders that might be one additional person you could delegate tasks to.

4. Get to Know Your Team
How well do you really know your team? Use this time to get to know the people on your staff (if you don’t already, that is). When times are tight they’re going to feel worried and stressed, and a friendly conversation with you could instantly set their mind at ease.

5 Steps in Planning a Successful Open House

1. Advertise
You need to tell everyone on your customer list that you’re throwing an open house. Use your power sport store software to send out a mass email telling customers the date and time of the event. Advertising in local newspapers, and spreading the word online, is also a smart idea.
And, make sure people know the benefits of attending, which leads us to number two…

2. Give Incentives for Attending
Just inviting your customers to show up isn’t going to do the trick. So, sweeten the pot and make it really exciting. Raffle off products. Have a sale. Offer free gifts with purchase, or free financing on large items. Make sure there are food and drinks. Hire a clown or pony ride for the kids. You could also think about having your area rep out for product demonstrations.
Do whatever you can to make your open house interesting, and make sure your customers know the benefits of attending.

3. Pick the Right Time
Summertime is usually the busiest time for powersports dealers. Often, the best time to host an open house is in mid to late spring. The weather is just warming up enough to get people thinking about fun summertime activities, but the season isn’t in full swing enough to where they’re too busy having fun to show up.
Conversely, if your busiest time is winter (selling snowmobiles) then have your open house in late fall.

Photo © by icathing

4. Remember Why You’re There
Open houses can be a great way to make sales, land some key accounts, and generate some buzz about your dealership. But it’s important to remember why you’re really there: to show appreciation for the customers that keep you in business.
Make it a point to thank every customer that walks in the door for their support throughout the year. Customers don’t hear “thank you” near enough, and it will show them that you recognize and appreciate them. That can go a long way!

5. Remember the Details
Often it’s the little things that can make or break an open house.
Make sure there are plenty of garbage cans available for trash, and assign one employee to continually clean the store during the open house.  Have a host at the front door to greet people as they come in.
Also, make sure your store is decorated with flowers, plants, balloons…it needs to look festive!

4 Ways to Avoid Burnout in Your Dealership

1. Book a Trip
If it’s not on the calendar it’s not going to happen, right? Many dealers keep saying they’ll take time off “next month”. But “next month” never comes! Financially committing to a trip by buying plane tickets or setting a date with friends or family will help ensure you actually take the time off.

2. Take Quick Breaks
When was the last time you took a Wednesday afternoon off to go golfing? Or took Friday off to spend with your family?
Taking small breaks during the week can really help ease your stress. You don’t need a two-week stretch to get reenergized; more frequent, smaller breaks can be just as effective. But when you take an afternoon off, make sure you really take it off. Leave work at work, and fully commit to whatever fun activity you decide to do.

3.Train Your Team
Make sure you have at least one other person who knows how to run your business just like you do. That means they know how to pull relevant reports from your dealership office software, they can handle ordering, training and any customer service issues that come up. When you have a right-hand person who’s fully trained in every aspect of your dealership then taking time off is easier (and less worrisome).

4. Commit to Regular Breaks
We know one business owner who can’t seem to commit to taking any time off for himself. So, his wife bought him a monthly massage, for 12 months. He either uses it, or loses it! He now takes one Friday off a month for his massage and then spends the rest of the day with his family.
Financially committing to a regular event can motivate you to take time off simply because you don’t want to waste your investment.

4 Strategies to Maximize Your Time

As a powersports dealer, chances are you’re always pressed for time. Between managing your inventory with your dealer service tracking software on a daily basis, managing your employees, and maintaining relationships with your customers, you probably wish there were 48 hours in a day just so you could get everything done!

What many owners don’t realize is that there are several easy ways they could be more efficient with their time during the day. Want to get more done? Here are some tips to help get you started.

1. Don’t Waste Time Waiting

You never know when you’re going to have an extra fifteen minutes. You might be waiting in line to buy supplies for your dealership, or waiting to pick your kids up from school. You could use this time to complete tasks that keep get putting off. Keep a briefcase or bag with you, or in your car, at all times, and make sure there’s work in there that you normally don’t have time for in the office. This could be a report you need to read, a checkbook that needs balancing, or even just a pad of paper that will help you plan out your week or next marketing campaign.

2. Invest in a Smartphone

Today’s technology is amazing, and it can help you dramatically improve your productivity. Smartphones, like the Droid or iPhone, can store incredible amounts of information. If you had a Smartphone you could follow up with customers or check key metrics from anywhere; you wouldn’t have to be at the office. This could be a huge time saver in some situations.

3. Stop Saying “Maybe”

Many dealers say “maybe” a lot. All maybe does is waste time, however. If you’re saying “maybe” to a question or commitment, then chances are, deep down, you don’t want to do it. But saying “maybe” only means you’re going to have to reconsider and say “no” to the decision later on. Instead, learn how to make quick decisions and just say “yes” or “no”. Remember, you don’t have to give extensive reasons for saying “no”. Simply say, “No, I can’t do that.”

4. Use Email to Your Advantage

If you have quality power sports office software, you can save time by emailing your customers when you need to talk to them. Most people these days are extremely busy; they’d rather have an email message letting them know their mower is fixed than a phone call. Utilizing email here can save time, especially if you prewrite the emails and paste them into the message. Keep in mind, however, that not all customers prefer email; many like the personal communication of a phone call. It’s important to ask first, and keep notes of these preferences in every customer’s file.

Last Word…

Owners are always going to be busy. Utilizing some of these easy time management strategies you can at least keep from feeling overwhelmed with all the tasks and people that demand some of your time.

The Importance of Setting Time Limits in Your Dealership

Do you have routines in your dealership?

Perhaps your routine is that first thing in the morning, you fire up your dealership office software and manage your accounts. Or you start the day off with a team meeting.

These routines are good, but they’re not the kind of routines we’re talking about. We’re talking about the kind of routines that effectively manage your staff’s time.  These routines can dramatically change how your dealership operates for the better.

For instance, do you routinely give your shop technicians time limits on projects? You’d be surprised at how many dealers don’t. But if your techs know they have one hour to complete a job, they’re likely to get that job done in an hour, and they’re probably going to do it on a consistent basis once that becomes the new routine. This means that you’re improving the efficiencies in your shop and earning more with very little effort.

Another important change you should make is the way you assign tasks to your team. For instance, instead of telling your parts department you want something done by the end of the day, tell them in needs to be completed in the next hour, or by a set time. This forces them to be more efficient and get the task completed quicker.

The same goes with your sales staff. Most owners know that during slow times, staff can drag their feet and take two hours to sweep the floor or straighten some shelves. But giving them a half hour time limit to get it done will ensure you’re being efficient with your staff and getting more done during the day.

Keep in mind, however, that time limits might not be a good idea during the busy season, when customers are coming in and out. But during slow months this is an effective method for getting your team moving.

You should also use this technique yourself. For instance, you know you should be using your power sport office software on a daily basis to pull up reports like fastest moving parts, inventory turns, and gross profits. But this is a task that dealers often put off. So set a specific time, like just after lunch, and give yourself exactly half an hour, until 1:30, to get it done.

Sometimes it’s easy to lose track of time when you’re doing something. You can easily get lost checking and responding to email, or going over your reports. Try using a kitchen timer to keep yourself on schedule. Set it for an hour at a time to ensure you stay on track with what you’re doing.

Staying on top of your business is a vital routine. Putting yourself, and your staff, under deadline to get tasks done can be an effective way to get more done during the day.

5 Time Management Categories to Manage Your Time Effectively

As a powersport equipment dealer, you probably have more to do than you have hours in a day to get it all done, especially during the busy season. When you don’t strategically manage your time, however, your stress levels go up and your productivity goes down. Many people think that simply using a planner or calendar is all they need. But it’s important to realize that tracking your time isn’t the same as managing your time.

Time management is about having a system and making changes to the way you’re spending your time so you can work more productively.

One of the most effective things you can do is to block your time out into categories so you can see where your day actually goes. There are five categories that, as a dealer, you can use.

1. Putting Out Fires
How much time do you spend every day putting out fires? Probably a lot. Putting out fires is probably one of the most draining things you do every day, so take a few minutes to figure out what percentage of your day goes to this activity.

2. Dealing with Interruptions
Vendors calling and dropping by, your service manager popping in for an impromptu meeting…chances are your days are filled with interruptions. How much time do you spend daily dealing with these interruptions?

3. Doing Planned Tasks
So, now we’re finally getting to some productive work! Planned tasks are things you’ve scheduled yourself to do during the day. This could be using your power sport customer tracking software to create next season’s marketing plan, meeting with your whole goods manager, etc. How often, and how much time, do you actually get to work on planned tasks?

4. Working Uninterrupted
How often do you get to spend working completely uninterrupted from distractions? Probably not that much, right? Chances are you finally get uninterrupted work done when everyone leaves for the day. Like everything else, figure up what portion of your day goes to this task.

5. Uninterrupted Downtime
Do you ever get time during the day to just wind down and re-energize yourself? Most dealers don’t make time for this, but uninterrupted downtime, like during lunch or a mid-morning or mid-afternoon break, is really important for maximizing your productivity.

Now that you have a better sense of where your time is going, you need to come up with strategies that will shift those percentages to where you want them to be.

For instance, you might be spending 60% of your day putting out fires. Well, analyze what kinds of fires you’re putting out. What organizational or process changes do you need to make to fix these problems so your time can be better spent elsewhere?

Another good example is your downtime. Chances are, you’re not getting enough, if any, downtime during your day. Well, you need to make yourself take this time. One of the best things you can do is to physically leave the building every day for lunch or break. If you’re not there, your managers are forced to handle issues on their own.

These are just a few examples of how you can improve your time management simply by having an accurate picture of where your time is going now. The more you take control of your time, and how you’re spending it, the more productive and happier you’re going to be in your dealership!

The High Cost of High Inventory

Your parts department might be full to overflowing with parts. And to some dealers, this is a good thing. After all, you have a great selection for customers, which means you’re their “go to” store when they need a part.

But, how much is all this inventory really costing you? And are you really making your customers happy by stocking everything under the sun?

Let’s take a look at the high cost of high inventory.

Cost #1: Your Reduced Cash Flow

You might have $200,000 in parts sitting in your dealership. But chances are you have at least $20,000-$30,000 in parts that you simply don’t need.

That’s a lot of your money that’s being tied up in parts you might never sell. If you’re having cash flow problems then the first thing you need to do is use your powersport office management software to check your parts department. Returning your slowest-moving parts will allow you to get that cash back and have it start earning you interest (instead of collecting dust in your parts department).

Cost #2: High Inventory is Harder to Track

You know all too well just how maddening taking inventory is. But, it has to be done.

If your parts department is jammed with parts, it’s going to take you an incredibly long time to count them all. How much are you paying your employees to do this? How much money would you save on labor if you reduced your inventory by just 5%?

It’s also important to think about your local government when it comes to your inventory. Many governments have hefty inventory taxes that they’re levying against businesses to enhance their own cash flow in this economy. The more inventory you have in stock, the more you’re going to pay in taxes.

For instance, one dealer in Georgia had to pay an additional $30,000 in inventory taxes that he’s never had to pay before. That’s an enormous amount of cash that he could have saved simply by managing his inventory more effectively.

Cost #3: Confusion

The larger your inventory, the more confusing things can get for your team because it’s just harder to keep track of it all. Parts get misplaced or lost, and boxes get moved. This is more money you’re losing, especially if you have customers walking out the door in frustration when service takes too long.

Smaller inventories are simply easier to manage and they take up less space. You could, in turn, use this extra space to increase the size of your whole goods department.

Last Word…

It’s all too easy to let inventory get out of control. But maintaining a large parts inventory costs your business in several ways. You’re not only tying up your cash flow, but you also run the risk of paying higher taxes and losing customers due to inefficiency.

Using quality powersports office management software can help you make intelligent decisions about your inventory and trim it down to start saving money and time immediately.

Are You Measuring These Key Drivers in Your Inventory?

Photo © by marabuchi

Despite some great advances in the powersport industry, there are still a large number of dealers who aren’t managing their inventory correctly. Why? Well, there are several reasons.

One could be because they don’t have the technology to do
it easily (which is why investing in powersport inventory management software is such a smart idea). Being able to manage inventory, and see real-time figures of what you have in stock, can add significant savings to your bottom line. Most dealers find that they pay for the powersport office software within the first year.

Another reason might be because these dealers don’t see the need. But effective inventory management is one of the most vital tasks you need to do regularly to keep your dealership healthy and your costs under control.

So what key measurements should you be looking at?

1. Inventory Turns
You should aim for 5-6 turns per year for your inventory. This may sound like a lot to some dealers, but 6 turns per year truly is the most efficient and profitable for powersport dealers. Anything more than 6 and you’re going to start losing that efficiency because you’re ordering more often. Again, however, without a business management system it’s hard to know where you’re at with this.

2. Parts Sales Reports
Do you know what your fastest moving parts are? Do you know what hasn’t moved at all?Many dealers are unaware of this important information. But this information can help you make important, strategic decisions for your dealership. For example, you want to make sure you don’t ever run out of your fastest moving parts.

You could also make sure that your fastest moving parts are closest to the counter to improve efficiency. Time is often your enemy in the parts department; when a customer comes in looking for a part, you should have closed a sale with them within 4 minutes of them walking through the door. The faster your team can find your most popular parts, the more sales you’re likely to make. At the least, your customers will leave happy because they got in and out quickly.

3. Whole Goods Sales Reports
Most powersports dealers see their peak in early summer. This means you need to be prepared with the right amount of inventory to handle your increased business. But you don’t want too much, because over-ordering means you’re tying up valuable space in cash in your inventory.Monitoring your whole goods sales reports from past seasons can help you make informed decisions about how much inventory you’ll really need for this year’s season.

Last Word…

It’s really easy for dealers to let their inventory get out of control. But investing in quality powersport office software and closely monitoring key reports will help ensure that you’re making informed decisions that will keep your dealership healthy and strong in the years to come.