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.

Why You Should Be Selling Online

Many OPE dealers don’t think they need to sell online. After all, would you really sell a snow blower or lawn mower over the internet?

Well, maybe, maybe not. But open up your OPE inventory management software sometime and take a look at how many parts you sold last month, and the month before. How would you like to increase those numbers by 25%? 50%?

It’s entirely possible to dramatically increase your parts sales, if you start selling them on your website.

It’s also important to realize this: if your competitors are selling parts online, then they’re taking market share away from you. Your customers are busy; if they can buy a part online and have it shipped to their door, they’re going to opt for that instead of driving around looking for it.

The Key to Successful Online Selling

The great thing about having an online store is that it’s working for you 24/7. You don’t have to be “open” to make money if you use the Internet. And the opportunity to earn additional income is incredible. But having a successful store for your OPE dealership depends on a few things.

1. Keywords

If you start selling parts or other items online, people must be able to find you. For instance, if you have a store in Kansas City and someone Googles “Kansas City lawnmower parts”, you want to make sure your dealership is on that first page of Google. So you need to choose keywords that relate to your business, and make sure your site, and your online store, are using them effectively, over and over again. Even if you need to invest in a search engine marketing firm that will help you improve your rankings, your increased sales might be well worth the investment.

2. Use Email Effectively

Hopefully you’ve been collecting your customers’ email addresses. Once your store goes live, make sure your customers know about it! Send them an email to let them know they can now buy parts online. You could also think about giving them a specific coupon code for 10% off their first purchase.

Email is also beneficial because it can go viral. That is, one of your customers may not need a part right now. But they know their sister, who lives 200 miles away, does. So they can forward that email to her to use. This means you just picked up a new customer who normally would have never come into your store.

That’s the power of the Internet.

Last Word…

Many dealers underestimate how much an online store could do for their business. But you can potentially increase your monthly profits by thousands of dollars, simply by putting up an online store and optimizing it with SEO. At the least it would make your store look more professional, and give your customers a more convenient way to shop with you.

What Is Your Dealership Saying to Your Customer?

When was the last time you spent time analyzing how the outside and inside of your store looks?

Many dealers spend a great deal of time on this. Many more, however, don’t give it a second thought.  But if you want to make a positive first impression to your customers and keep them coming back, then you’ve got to realize that how your store looks says a lot about who you are and what you care about. And your customers are noticing.

If your dealership needs some sprucing up (inside or out), try using these tips…

The Outside

One of the worst things an outdoor power equipment retailer can do is to neglect the outside of their store, especially the lawn. After all, you’re selling lawn maintenance equipment. You need to spend time keeping your lawn looking inviting. Unkempt lawns send a very negative signal to current and prospective customers.

• Make sure the grass is cut once per week during the growing season.
• Create flower beds to add color and visual interest to the outside of your store. If you focus on planting perennials you’ll only have to make the investment once, as they’ll grow back each year.
• Lay down a thick layer of mulch to keep your beds tidy and moist all summer long.
• Make sure your dealership’s windows, and all signage, is spotless.
• Sweep the parking lot weekly, and make sure that all trash is picked up on a daily basis.

The Inside

Once you’ve got the outside spruced up, it’s time to focus on the inside of your store.

• Make sure that your shelves are dust-free. Customers don’t want to buy product they even suspect might be “old”, so make sure everything is kept dust-free.
• Many dealerships, especially ones located in older buildings, have terrible lighting. Customers want a store that’s bright, open and welcoming. If your store is dim, then make it your top priority to add additional lighting.
• Head over to Home Depot and take a close look at how they have their equipment displayed. Customers today are very savvy; well-put together displays sell far more than product that’s just jumbled or stacked on a shelf. Try to make your store look as “professional” as the chain stores.

The Checkout

You can also impress your customers as they’re walking out the door by having high quality OPE point of sale software. Quality software is not only convenient for your customers (since they get out the door faster), but it also allows you to track vital data like buying trends, lost sales, and your customers’ contact information.

Your dealership is constantly sending subtle messages to your customers. Invest the time in making sure that those messages are the right ones so that your customers keep coming back.

The Power of Small

Common Mistakes That Cause Your Dealership to Lose Customers

As an owner, it’s all too easy for you to become blind to the small details of your dealership. After all, you’re there every day. And when you’re there, you’re busy. You can’t go over everything with a fine toothed comb on a daily basis, right?

Well, no. But it’s helpful to take a step back every few weeks and look at the small things. Because it’s these small things that could be driving away your best customers.

Here are a few small, common mistakes that owners often overlook in their dealership.

Mistake #1: Exhaust Fumes

What do you think your customers think when they walk into your showroom and smell exhaust fumes? Now, some of your customers may like it. But many won’t. Today’s customers want clean stores that sparkle and smell good. Do what you can to put up additional barriers between your service department and the showroom to eliminate exhaust fumes leaking in.

Even if you don’t have a direct access from your showroom to the service department, check the smell of your space anyway. Is it pleasant, or at least neutral?

Try opening windows and doors when the weather is nice to let in some fresh air. Offgassing from equipment can create a stuffy, “plastic-smelling” environment which is not only unpleasant, but can actually be unhealthy. The more fresh air you can let in, the better your showroom will smell.

Mistake #2: A Low Fill Rate

It’s never a good business strategy to try and be all things to all people. But when a customer comes into your store, they usually want to get in and get out. Having what people need, versus an overstocked, overpriced stockroom, is a very fine line.

Dealerships should strive for a 90% fill rate. This means that 90% of the time, you have what your customers need right there in your store.

This is where OPE point of sale software comes in. A quality OPE point of sale software will allow you to track your customers’ buying habits, which will enable you to fully understand what they’re looking for. And when someone comes in and asks for something you don’t have, you can track that as well. Knowing what your customers want, and what they don’t want, will allow you to reach that 90% fill rate.

Mistake #3: Unclean Restrooms

Many owners don’t give much thought to the restroom. After all, most of the time it’s an area that someone else deals with. But many customers, especially women, pay very close attention to the cleanliness of restrooms.

How do you think customers react when they go into a store’s restroom and it’s dirty? What if they have small children, and have to change a diaper? Would you want to change your child’s diaper in a dirty restroom? Definitely not.

Unclean restrooms can create a very negative reaction in your customers, both men and women. Make sure they’re cleaned daily (or more, if you’re busy). Make sure there is good soap, ample paper towels, and hand sanitizer. It also wouldn’t hurt to hang up some attractive pictures, and make it as comfortable and pleasant as possible. Your customers will notice.

Last Word…

When you’re looking for ways to keep your current customers coming in your door, don’t forget to notice the little things. They may not seem like much, but it’s often the smallest changes that can make the biggest difference.

Easy Strategies to Get Customers in Your Door

As the owner of a dealership, whether it’s large or small, it’s easy to get tied up in the day-to-day workings of your business and forget to step back and look at your larger purpose: that is, providing amazing service to your customers.

But first you have to get them in the door. Let’s take a look at some tips you can use to make your customers happy and set yourself apart from your competition.

Strategy #1: Improve Your Parking

Many owners don’t think twice about their parking. After all, it’s a parking lot. What’s the big deal?

Well, it’s a big deal to your customers because most of the time, they’re in a hurry. They want to get in and get out so they can get on with their day. Customers can easily get annoyed with parking lots that are too small. And, this annoyance can cause them to go somewhere else.

A good rule of thumb is that for every square foot of your retail store, you need five square feet of parking.

It’s also important to analyze how your lot is laid out. Many customers can’t walk easily on gravel, so using asphalt is your best bet. Your lot should always be clean and attractively landscaped. Remember, this is your customers’ first impression of your dealership when they pull in. Make it a good one.

Strategy #2: Improve Your Curb Appeal

Your customers want to know that they’re shopping at the best store. And, this realization starts with how your store looks from the outside. Curb appeal is extremely important for dealerships, and yet most owners don’t give it a second thought. Their focus is the inside of their store-not the outside.

Go outside and look at your building from across the street. How does your store look…is it attractive, or dirty? Can potential customers easily read your signs? Is your garbage bin placed where everyone can see it, or is it hidden in the back? Are the windows clean?

Make every effort to improve the curb appeal of your building. All these little details send big signals to your potential customers about the quality of service they can expect from you and your team. When you take excellent care of your building, and how it looks, your customers know that they can expect the same level of attention once they go inside.

Strategy #3: Make Sure You Have an Identity

Some dealerships try to be all things to all people. But you know how the old saying goes…when you try to please everyone you end up pleasing no one. Dealers that carry several different brands of the same product just end up confusing their customers with information overload. And then, they don’t end up making a purchasing decision.

If this sounds like you, then use your OPE point of sale software to determine which products you’re selling the most of. These products should become your identity. Take the time to become an expert on these core products, and let the rest go. You’ll better service your customers with your in-depth knowledge of these items, and you’ll help them avoid the confusion from having too many choices.

Last Word…

Having a successful dealership means you put your customers, and their wants and needs, first. Strategies like improving your parking lot, improving your curb appeal, and using your OPE point of sale software to improve your product selection can go a long way towards getting customers in the door, and keeping them around over the long term.

How to Impress Your Customers…On the Phone

Most OPE dealerships today have plenty of competition. And, it’s all too easy for customers to drive to a big box store and get a discount that many dealers can’t match. But, dealerships can win these customers back by providing excellent, personal service to everyone who walks through their door.

Providing excellent service benefits everyone. Your customers feel truly special when you treat them with attention and respect. You and your team feel good because you know you’re doing the right thing. And, your business benefits because not only will your customers keep coming back, but they’ll tell their friends and family about the great experience they had in your store.

Big box stores usually can’t compete on this level.

So, how can you do about wowing your customers? Well, it all starts with a phone call.

1. Avoid the “Hold” Button

It’s easy to forget that providing excellent customer service starts the moment the phone rings. Often, the biggest frustration a customer experiences is when they’re put on hold. At a big box store, this is standard fare. So, make it a goal not to put your customers on hold, and never for more than thirty seconds.

2. Act Like the Customer Is Right There

When a customer calls you’re not always going to be able to answer their question right then and there. You might be with another customer, or you might need time to research their question. It’s vital that you, and your team, return each call that comes in. Forgetting to return calls reflects very poorly on your business, and customers won’t keep calling back. Treat each phone call as if the customer is right there in your store, and return their call as quickly as possible.

3. Don’t Overuse Your Technology

Today’s technology is a marvelous thing, especially when it comes to OPE office management software. These days we can track our customers’ buying habits, record lost sales, send out e-newsletters to educate our customers…all of which we couldn’t do just 20 years ago. But it’s important not to let technology get in the way of your customer service, especially on the phone.

Many larger dealerships have an automated answering service. When the phone rings, a machine picks up and directs the customer to the correct department. Although this is convenient for the dealership, how convenient is it for the customer?

Usually, not very convenient at all. In fact, most customers are annoyed by automated answering services. So why use them if you don’t have to?

4. Coach Your Team

Is your team aware of how important every phone call is, and the impact these phone calls have on the dealership’s success? Probably not. So during your next staff meeting or morning huddle, share these tips, and other rules for phone etiquette. When they realize how important these calls are, they’ll want to go the extra mile for each customer.

Last Word…

Photo © by LordFerguson

You and your team need to spend as much time as possible interacting with customers, and that includes the moment they call in with a question. The more opportunities you have to impress your customers, even on the phone, the likelier they are to come to your dealership first, and spread the word about the great job you’re doing.

Remember, many customers interact with your business for the first time over the phone. This means that you and your team really need to make a great first impression!

Earn More By Creating a Positive Atmosphere In Your Dealership

Photo © by lumaxart

There’s no doubt that OPE dealers have it rough when it comes to their customer base.

Think about your average customer for a minute. He’s been out mowing grass, which he doesn’t like to do, when suddenly his mower breaks. Now he’s irritated because he’s got to stop what he’s doing to head up to your shop to see if you’ve got the part he needs to fix it. He’s in a hurry and already on edge before he even walks through the door.

You definitely want to create a great experience for everyone who walks in the door. And, this starts with treating your employees like you want to treat your customers.

Yeah, it’s a tough lot for OPE dealers. But by making a little effort, you can transform this cranky customer into a happy, long time fan of your business.
Here’s why: if your employees are angry, confused, and hostile because they don’t like working at your dealership, your customers are going to pick up on that tension immediately. It literally poisons the atmosphere of your shop, which is why going the extra mile to treat your team like family always pays off.

And, creating a great atmosphere for your team isn’t just about handing them a bigger paycheck. It’s about creating a great work experience and environment for them day in and day out. And, this starts with your attitude. If you come in with a bad attitude, then your team is going to have a bad attitude.

You’ve also got to get rid of the employees who constantly complain and contribute to the bad atmosphere. If they can’t stand their job, then they’re not going to treat your customers well.

Creating a profitable, organized shop is also vital to giving your customers a good experience. If your service department is chaotic, inefficient, unorganized, and dirty your customers are going to pick up on it. And, they’ll find another dealership.

So, your service department needs to be more efficient and profitable. And, this begins with your management.

To start, you have to have a real sense of where you’re at. This is where OPE business software can help. If you don’t have any idea what’s wrong with your service department right now, then you won’t know how to fix it to create a better customer experience. So, investing in OPE business software at the onset can really pay off.

You’ve also got to stop doing real-time billing. This is when you work on a piece for a half an hour, and then you charge that customer for half an hour’s worth of work. You’re never going to make money in your service department doing this. Instead, you need to think more like a car dealership and start doing flat-rate and menu-pricing on the bulk of the work your team does.

You can also improve your shop’s efficiency by offering your technicians a bonus when they reach 85% efficiency. This efficiency means higher profits for you as well as happier customers when their machine is fixed on time.

Creating happy customers starts with your team, and ends up with the dealership itself. When your team is happy and you’re running an organized, profitable dealership, your customers will keep coming back. Why? Because the overall atmosphere will be a positive one.

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 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!