• Avoid software installation fees!
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Ideal Computer Systems, the leading provider of business management software for Outdoor Power Equipment dealers, has once again been invited by Bob Clements International to be the official software provider for their Dealer Resource Pavilion at this year’s GIE+Expo. The expo takes place October 27-29, in Louisville, KY.

This year’s Dealer Resource Pavilion has expanded to include a dealer resource roundtable breakfast, internet café, dealer-only lounge, educational presentations, as well as a service department designed to help dealers turn their dealerships info strong profit centers. Ideal representatives will be on-hand to help educate dealers on ways industry-specific software can streamline their entire service department, as well as all other areas of their business including inventory control, customer management, sales & invoicing, accounting, purchasing, and reporting.

“The Dealer Resource Pavilion has grown to be one of the main attractions at the GIE+Expo and we are honored to participate in such a great educational resource for OPE dealers,” said Greg Carradus, sales and marketing manager of Ideal Computer Systems. “This is the perfect opportunity for dealers to learn best practices for building a profit-generating service department and how business management software can simplify the process.”

Bob Clements International, regarded as one of the top consulting firms for OPE dealers, is once again heading the event. Joining Ideal as pavilion sponsors are ARI, Briggs & Stratton, Cub Cadet, Gravely, Heftee, Husqvarna, Lista, North American Equipment Dealers Association and Stihl.

“Our number one goal at the GIE+Expo is to show dealers what their Parts and Service Departments would be like if they stepped back and looked at them differently,” said Bob Clements, president of Bob Clements International. “Having a good business management system along with the right organization and good processes will take their dealership to new heights in profitability.”

In addition to the Dealer Resource Pavilion, dealers may also view Ideal’s software and speak with company representatives in booth #380 at the GIE+Expo.

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About Ideal Computer Systems, Inc.:

Ideal Computer Systems, a product of Constellation Dealership Software, is recognized as the leading provider of business management software for Outdoor Power Equipment dealers. With 26 years of proven experience, Ideal has helped thousands of OPE dealers manage their business more efficiently while boosting profits. To learn more about Ideal, visit www.idealcomputersystems.com

About Bob Clements International, Inc.:

Bob Clements International is a consulting firm that specializes in the development of high-performance dealerships. The organization works hands on with dealerships throughout North America, helping them attain the personal freedom and financial wealth all owners strive to achieve. You can learn more about Bob Clements International by visiting www.bobclements.com

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.

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.

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.

Ideal: What is your position?

Bob: I am the owner of George’s Mower Sales and Service and involve myself in daily operations.  I do a lot of everything, but mostly pay bills and do the financials.

Ideal: How long have you been in business and when did you implement Business Management Software?

Bob: We’ve been in business for 35 years.  My father-in-law started the business and needed help, so I left my job as an auto mechanic to work for him and stayed.  I ended up buying the business in 1979 when he retired.  We started using business management software in 1989.

Ideal: As a dealer, how many different manufacturer sales reps do you work with?

Bob: I work with over 32 suppliers if you include all industries inside and outside. I work with 11 if you are talking about the OPE industry.

Ideal: How often do you meet with reps?

Bob: On average once a month and for good dealers that is plenty.  When I first got started, I mostly did repairs.  I would call reps twice a month at most.

Ideal: Do you need to prepare before a rep comes to see you?  Do you expect a call ahead of time?

Bob: No, if they walk in we give them the time of day.  We give them the courtesy of hearing what they have to say.  I don’t like to tell someone to get out of my store; most people do not do that.  I welcome all reps into our store. 

The only time I need to prepare is if they come in to do a booking or need to run some history.  With our Ideal system it is quick to do.  For example, when our Snapper rep came in last week, we ran history and did a minimum stock level using Ideal.

I appreciate it when reps call at least an hour ahead of time.  I don’t like to set appointments and I prefer to go by the seat of my pants, but I want to know ahead of time so they can make sure I am here.

Ideal: What makes a good rep?

Bob: Understanding the dealer side of the business.  There are reps that have been on our side of the business and they tend to make a much better rep than just another sales person.  That individual can identify with the dealer.  One rep of mine used to work for me.  I introduced him into the industry and he appreciated all the knowledge I shared with him.

I prefer reps that have power to make decisions and not ones that have to go through two or three people or managers to make a decision.  For example, I had a mower come in with hidden damage found after the crate was opened.  The rep should have called someone to come pick it up instantly. Instead they had to call someone and go through a long tedious process that took time away from me and my business.

Ideal: What do you like about reps?

Bob: I like reps that are knowledgeable, good listeners, and well dressed.  I have a first class store, so I do not want a scruffy rep in my store giving a presentation.

Ideal: What are some areas that sales reps could improve on to become better reps?

Bob: Don’t be pushy and try to sell something you don’t need.  There is no point in overbooking when you are paying finance charges.  I also don’t want a rep telling me to do this or to do that.  I will show reps my numbers and then ask them, “Would you do this if you were in my shoes?”   You have to do what is best for you and I have to do what is best for me.

Ideal: If you could give reps one piece of advice, what would it be?

Bob: I would say, be understanding.  Understand what the dealers are up against or our position in the industry and be knowledgeable to help us overcome our challenges.  For example, last year with <a manufacturer>, we were overstocked.  I started to accumulate $2,300 worth or finance charges.

As a rep, don’t give me lip service.  If you say you are going to do something, do it, and do it in a timely fashion.  If you promise to do something you better do it.  I don’t like to waste time calling back or chasing around to figure out what is taking so long.

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.

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.

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.

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.