Powersports dealerships and salespeople alike have reaped the benefits of healthy profit margins over the last few years. However, just as the margin pendulum swung deep into seller’s market territory, it’s beginning its backward trajectory into a buyer’s market.
According to Lightspeed DMS, powersports dealers reported an overall revenue loss of 1.4 percent during the first quarter of 2023, with service showing the only positive trend. The Powersports Business Q1 Dealer Survey also reflected increasing concern for growing inventory levels in the face of mounting economic fears. Dealers are split on their outlook for the remainder of the year, with many leaning towards “somewhat worse” to “significantly worse” as compared to the end of last year. While inflation and pricing continue to worry, inventory issues have eased significantly.
Where does that leave you? It should be a dog whistle to step on the gas and start selling! I don’t mean lowering your prices or launching some gimmick. I mean empowering your sales team to dust off their selling habits, which may have been dormant for the past three years. The days of relying on ‘pent up demand’ and high margins to make quota are over. The effects of stubbornly high interest rates, lingering concerns about the economy and a potential recession are beginning to show. Your sales team likely needs a refresher course – at a minimum – or a complete training upgrade given the increasing transition to a digital sales platform.
Fortunately for powersports dealers, summer is here. It’s the peak powersports sales window for motorcycles, off-road and marine. A ‘glass-half-full’ level of optimism coupled with an engaged, energized sales staff can go a long way in powering your dealership over any speed bumps that are out of your control. So, let’s start with a booster shot of training to get things going.
Training for talent
Your staff are experts when it comes to the products on your showroom floor. They understand the differences between models, performance trade-offs and required accessories. But how are they engaging with customers online? They may need a refresher on utilizing the new digital tools to maximum effect.
Training comes in many shapes and formats and should be used as a tool to educate, support, and motivate your sales team. Used properly, training is a creative approach that keeps your sales team engaged while reinforcing good habits that drive revenue. By setting clear goals and expectations through training, your sales team can be successful during these challenging times.
Our training team at EFG believes behavior-based training is the best approach to delivering proven results. We assess the individual needs of each participant, measure their performance through the various course offerings and follow-up with dealership management to ensure learned behaviors are supported and implemented.
Training does more than support your current staff. It’s a major selling point for recruiting new team members. Career development is often cited as the number one component in hiring and fostering a motivated, engaged team. With continued labor and hiring challenges, training can address many of the issues facing your dealership today.
June is the perfect time to assess the first half of the year, see where you stand on meeting goals and projections, and fine tune your approach to end the year in the black. Investing in your team with proven sales training that delivers revenue seems like a no-brainer. And we’re here to help. Our proven team of EFG trainers bring years of experience and a proven curriculum that can refresh your sales team while helping you hire and retain new staff. Remember, at EFG Companies, we’re more than an F&I provider, we’re your business partner with years of expertise in the powersports industry.
