Category: Dealership Training

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Maximize Productivity Ahead of High-Stakes Selling Season

The groundhog did not see his shadow; the clocks have sprung forward; tax season is in full swing, and spring is just around the corner. Powersports dealers across the U.S. expect to capitalize on a strong spring selling season. Before the frenzy starts, set your team up for success and avoid burnout by investing in your people today.

According to the Bureau of Labor & Statistics, 44.1 million people voluntarily quit their jobs in 2023. As of June last year, Powersports Business News reported that labor shortages continue, citing a survey by Sunrise Cycles stating that 62 percent of dealers surveyed were short staffed in at least one department.

We’ve all felt the stress that comes with a short-staffed environment. Everyone takes on more responsibilities, and burnout and disengagement are just around the corner. According to the most recent Gallup State of the Workplace Report, employee engagement has continuously dropped from 2020 through 2022 and the ratio of engaged to disengaged workers in the U.S. is now 1.8-to-1.

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Dealership Training

Boost Sales with Targeted Training

Based on data from 1,700 dealerships in the US who use the Lightspeed DMS platform, powersports closed out 2023 with a glimmer of positivity. While overall revenue was down 0.9 percent, unit sales were up 0.7 percent, signaling the potential for hope in 2024. Regionally, the Northwest, Midwest and South all notched notable revenue gains.

While interest rates and inflation clearly put a damper on sales in 2023, positive economic news in January should prove beneficial. Consumer sentiment is also showing signs of improving as inflation eases and gas prices drop across most of the country. Hiring picked up sharply in January as employers added a booming 353,000 jobs, highlighting a labor market that continues to defy high interest rates and household financial strains. while at the same time incomes of most Americans are growing.

These indicators may paint a rosy picture for 2024. But it’s critical that dealers understand one thing above all else. Selling a powersports unit today is radically different than during the pandemic. Every step in the sales process – from the initial buyer consideration to rolling that unit off the lot – requires a unique set of skills from every team member. Shifting product mixes, evolving consumer demands, and emerging ways to leverage data are all factors dealers need to keep in mind as they empower their teams for success. And F&I training is the key to ensuring team members are firing on all cylinders.

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Dealership Training

Relearning the Art of Negotiation

The powersports market has struggled this year to maintain the high profit margins of the previous few years. Between inventory levels rising and lending rates skyrocketing, front-end margins continue to feel the pressure. As Fall hits several regions known for ATV/UTV use, powersports dealers are hoping the fourth quarter shows some bright spots.

The economic indicators paint a murky picture. While the rate of inflation held steady in September at 3.7 percent, consumer sentiment trended downward reflecting the growing impact of rising prices on discretionary spending. A strong labor market coupled with decreasing prices for fuel and groceries could provide a glimmer of hope.

While these factors are largely out of your control, there is one thing that can make a notable difference – relearning the art of negotiation! Chances are your dealer staff has turned into order takers, giving the consumer a ‘take it or leave it’ attitude that either turns them off completely or shows them a narrow selection of units that don’t meet their needs. I’m not talking about the hard-nosed, fight for every dollar type of negotiation. I’m talking about engaging closely with customers, understanding their needs and financial situation, and working with the entire dealership staff to find the right unit for the customer.

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