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Business Growth Powersports Market

Set Your Dealership Apart with Certified Mechanics!

Glenice Wilder Vice President EFG Companies
Contributing Author:
Glenice Wilder
Vice President
EFG Companies

Crowd-sourced review sites are becoming more and more popular. While they don’t replace the more intimate word-of-mouth recommendation from a trusted friend, they are certainly a go-to resource for anything from a good dinner to a mechanic. And, speaking of mechanics, how do yours stack up? Do their skills set your dealership apart from the competition, or do your customers even know you have any onsite? And, if you have mechanics onsite, are they certified?

While the powersports industry does not have an official certification body, dealers still have several options to certify their mechanics.

Available Training Options

Whether you already have mechanics on staff, or are looking to hire, understand the training options that are available. There are several educational entities that offer certified training. The Motorcycle Mechanics Institute housed within the Universal Technical Institute offers several hands-on courses and partners with all of the major bike OEMs. General mechanical skills, brand-specific electives and CPO training are all available. Online courses are also available, but lack the necessary hands-on instructor component.

Some community and vocational/technical schools offer an introductory course on automotive and motorcycle engine repair. If you have this type of school in your area, visit the campus, speak to the instructor, and get a sense of the skills required for graduation.

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Categories
Powersports Market

Dusting off the Crystal Ball

Glenice Wilder Vice President EFG Companies
Contributing Author:
Glenice Wilder
Vice President
EFG Companies

I’m asked frequently by our powersports dealers – “What’s the next thing on the horizon?” This question always prompts a useful conversation about recent news and near-term adjustments to make on the showroom floor. But what if we expanded our horizon a little bit? What if we contemplated the powersports dealership 20 years into the future?

A glimpse into my crystal ball shows the entire powersports buying process taking place online. It will look much more like an Amazon purchase model. Consumers will control the entire process and will have access to all information on motorcycles, F&I products, and financing. By moving the sales and financing online, transactions will be streamlined, and simpler. The online platform will also make it easier for dealerships to demonstrate transparency and accountability.

This is a very different approach from today’s dealership, which relies on customers walking into a physical location, test driving bikes, and negotiating price. Even if today’s customer conducts their research online, the majority of dealerships are not prepared to execute a completely digital transaction.  But consider that our dealership of the future is showing bits and pieces of itself today.

Let’s think about changes to consumer buying habits. According to the firm BigCommerce, online shopping is booming.

Online Shopping

  • 51% of Americans prefer to shop online.
  • 96% of Americans have made an online purchase in their life, 80% in the past month alone.
  • Ecommerce is growing 23% year-over-year, yet 46% of American small businesses do not have a website.
Continue reading “Dusting off the Crystal Ball”
Categories
Business Growth Powersports Market

Make a Plan for the Second Half of 2017

Glenice Wilder Vice President EFG Companies
Contributing Author:
Glenice Wilder
Vice President
EFG Companies

Did the first half of this year leave you cautiously concerned or hopefully optimistic? Depending on your product mix, you either experienced strong sales in the off-road powersports area or a soft market for new retail bikes. Several OEMs also reported single digit declines, and the average wholesale price for on-road vehicles was down about three to six percent. However, the average wholesale price for off-road vehicles remained strong, showing a four percent increase. With this level of uncertainty, what steps should you take to ensure a successful second half of the year?

Savvy dealers will focus on maximizing every possible sale. And that means maximizing profit per unit – PRU. There are many factors involved in calculating the PRU including overhead, OEM rebates and marketing charges, etc. But one clear way to increase PRU is through maximizing F&I and funding as many deals as possible.  So let’s look at the deal after the customer says “I’ll take it!”

Where the Real Work Begins

It’s likely that a customer has entered your dealership to purchase a bike – not a maintenance package or a vehicle service contract (VSC). Chances are, they don’t even know these products exist – or any of the other F&I products you have to offer. The concept of protecting their purchase has probably not crossed their mind. They are simply interested in getting on that shiny bike and hitting the road.

Maximizing the PRU requires giving the consumer a view of the broader picture. Whether you offer simply a VSC and GAP, or also tire protection and overall maintenance, give the customer a clear description of all the products available – and why they are important to them. A menu is a useful way to disclose product offerings effectively and compliantly, increasing product penetration and PRU.

Continue reading “Make a Plan for the Second Half of 2017”