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.

How to Control and Reduce Inventory in Your Most Troublesome Categories

When it comes to inventory, you know only too well how important it is to keep it under control. Inventory is a huge part of any dealership and if it’s not managed well, you can tie up valuable resources and miss key opportunities.

In today’s economy, dealers have to get savvy when it comes to controlling and reducing their inventory. Here are a few ideas to help get you started:

Service Technicians’ Time

Most dealers don’t recognize that their technicians’ time is an inventoried item just like a set of tires or a racing jacket. Your service department should be one of the most, if not the most, profitable areas of your business. This is why it’s so important to use your power sport computer software to manage your techs’ time.

A quality powersport office software package can help you manage every minute of your tech’s day to ensure that they’re constantly working on billable projects and earning your dealership money.

Reducing Inventories in Parts and Whole Goods

One of the best ways you can reduce your inventory is through parts returns.

Your parts department can grow as if it has a life of its own. And if you don’t stay on top of your inventory here, you’ll eventually wind up with boxes full of obsolete parts. These parts are tying up your money, and your space.

Most manufacturers encourage dealers to return at least 10% of their stock every year. They plan on this kind of “take back”. On the average, however, manufacturers only see around a 2% return. This is because most dealers don’t take advantage of parts returns.

Make sure your parts manager stays on top of which parts aren’t selling, so they can be returned to the manufacturer to free up cash. This is another area where quality power sport office management software can really save you time and money.

You can also save significantly be reducing the number of lines you carry. You don’t need three after-market companies. If you’re going to handle after-market parts, you don’t have to buy from all three. Pick one and become a partner. This goes for whole goods as well.

You can help keep your inventory down by creating a stocking policy. For instance, when a customer comes in looking for a part some dealers will order one for that customer, and then another for themselves “for next time”. But this mindset is a quick way to inflate your inventory and waste cash you could be spending elsewhere.

Writing out a good stocking policy will help ensure that everyone on your team knows the rules about stocking, and how much should be ordered at a time. This will help save you cash and space in your parts department.

Last Word…

Dealers who know how to effectively manage their inventory will survive and thrive in any economy. By using quality powersport office management software and implementing these strategies you’ll be well on your way to reducing and controlling this vital area of your business.

Is Your Dealership Changing With the Times?

In today’s economy, customers have gone from a “buy new” mindset to “buy used” or “fix what I’ve got”. People are cutting back and extending the life of products they’ve already purchased.

Many Powersports dealers might see this as a death-knell for their business. But, this is only if you don’t adopt your business to the changing times. Dealers who are willing to change their priorities and business model will continue to see profitability and growth in this evolving economy.

So what needs to happen to make sure your dealership thrives?

1.   Emphasize Your Service Department

Customers are fixing what they have, which means you need to be putting your advertising dollars to work for your service department, not your whole goods.

Does your shop need new tools? Does it need a bigger workspace? This is the area that’s going to make your dealership profitable, so make sure you’re giving it the resources it needs to succeed.

It also will pay off to hire the best. If your service team is fast, professional and accurate your customers are going to keep coming back.

2. Stay on Top of the Numbers

Your powersport office software can give you, in a couple of clicks, real-time numbers on your profitability. This can allow you to make adjustments based on immediate data.What should you be looking at?

Well, since your service department is so important start there. You need to strive for 80% efficiency in your shop. This means your techs need to be spending 80% of their time on billable work.

For your parts department, you want to look at turns. You need to shoot for 4-5 turns per year on parts. And you should also shoot for 40%-45% profit on OEM parts.

3. Have the Right Processes in Place

Experts often say that business is about three things: people, profits and processes. Often, owners spend a great deal of time focusing on the first two, but they ignore the third.If you want your powersports dealership to survive in this new economy, then you must have the right processes in place to ensure speed and efficiency. This goes for your whole goods department, your parts department, and your service department.

4. Create Packages

If your dealership doesn’t have any packages set up, then you need to create some. Packages are a great way to give customers a great value while still getting to spend more in your shop.For instance, if customers bring in a bike for new tires, then offer them an oil change at a reduced rate.

You can tie packages in with seasons to create maximum impact and awareness. Fall winterizations and spring tune ups work especially well for this.

Last Word…

Just because the economy is fluctuating right now doesn’t mean your dealership is doomed. It’s up to you to change and be flexible. Investing in quality powersport office software that allows you to stay on top of key metrics, emphasizing your service department and creating packages are all smart moves for your business.

How to Use Your Service Department as a Marketing Tool

As a Powersports dealer you have a unique opportunity to market to your customers. And it’s sitting right there in your dealership. What is it?

We’re talking about your service department. Most Powersports dealers don’t look at their service department from a marketing standpoint. But this part of your dealership is a great way to establish an ongoing, positive relationship with your customers.

Think about it: you sell equipment to a customer one time. But you may service that equipment 10 times or more during its lifetime. So shouldn’t your service department be set up to constantly impress these customers that are continually coming back?

Of course it should.

So how do you do it?

1. Keep Your Promises
Does your dealership have certain promises or standards it makes to every customer? This could be that no customer waits in line more than two minutes, everyone is greeted by name, etc. Whatever standards your sales staff has to live up to on the sales floor, make sure those same standards are being upheld in your service department.

Make sure there is at least one computer installed in the service department with your Powersport office software. This way team members can look up customer names, order histories, part orders, etc. and provide the same quality service that your sales staff does.

2. Admit Your Mistakes
Occasionally, balls will get dropped in your service department. Parts go missing, service orders take two weeks instead of one…it happens to everyone.

What’s important is that your team admit to the customer when they’ve made a mistake or had a delay. Instead of pointing fingers or placing blame on another distributer (or team member, for that matter), have them take responsibility for what happened. Make sure they know to apologize sincerely for the delay, and do whatever it takes to make that customer happy again.

3. Give Your Team Training
Your techs and mechanics should have the same access to customer service training that your sales reps do. They need to become experts in the art of customer service. The better service your techs and mechanics provide to your customers, the more your reputation is going to spread. People will go out of their way to get their equipment serviced by your team if they know they’re going to get great service and top-notch treatment.

4. Teach Your Team to Upsell
Do your mechanics get any sales training?

Well if they don’t, they should. Think about this: imagine a customer brings in a bike for an oil change. Your tech notices their wheels are getting a bit thin. There’s a chance for them to make a sale right there.

Again, make sure your service department team gets the same training your sales team does. It could make a huge difference to your bottom line.

Last Word…
Many dealers don’t think about their service department when it comes to sales and customer service. But your team here is in a unique position to deal with your repeat customers on a regular basis. Making sure they have adequate training and that they know the standards you’re expecting can really pay off in the long run.

How to Do Research the Fast and Easy Way

“The more information you have, the more creative you can be”… “There’s no such thing as too much information. It leads to more ideas, more relevant ideas, more selling concepts, and a more persuasive selling message”… “You must— repeat, must—use research to stay ahead of the curve”… “For research to be outstanding, it’s got to be usable. And not just to the research people, but the entire company”… “It’s time for the marketing manager to admit that if you can’t measure it, you can’t manage it.”

These are quotes from The Little Blue Book of Advertising, by Steve Lance and Jeff Woll, former executives at advertising agencies in New York. Even if you’re not personally involved in your dealership’s advertising activities, their book is recommended reading if you’re looking for ways to increase sales and profits. (And who isn’t these days?)

What they wrote about consumer research was aimed at ad agency creative people, but it could apply to Powersports dealers, too.

Those who are now using Ideal’s Motorcycle/Powersports Dealer Management Software know firsthand how valuable it can be for consumer research purposes—but they may not be taking advantage of all of its features.

Those dealers who are not using Ideal’s software program probably have little or no knowledge of its many features that can quickly and easily provide the consumer research data they need to make intelligent decisions in regard to marketing, purchasing, turnover, pricing, repair/maintenance services, etc.

For example, let’s say you’d like to send direct mail pieces, announcing a new product demo, only to those customers who own a certain make and model of snowmobile—one they purchased from you and/or had serviced by you. By simply pressing a few keys on your computer, you can quickly create a file and produce a printout of the appropriate customers, complete with name, street address, e-mail address, and details on each customer’s snowmobile.

And let’s say you’d also like to send the announcement to those who have expressed an interest in snowmobiles, but have not purchased one from you (or, hopefully, from anyone else). If your salespeople obtained their contact information when they were in your dealership and entered it into your dealer management software program under “Snowmobile Prospects” (or whatever other heading you prefer through the use of custom fields), it would take only a few minutes to create a file on these prime prospects, too. Then you could quickly and easily send them mailings, inviting them to the demo.

Years ago, without such software, locating specific prospects and contacting them was a long, tedious and expensive process. Today, with Powersports Dealer Management Software from Ideal, it’s fast and easy!

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.