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Dealership Training

Training For Future Success

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

The market has been showing positive signs over the past few months, with growth in both new and used bikes. Even the traditional auction houses are feeling the pinch between demand and inventory. Lenders are also looking into the powersports market with renewed interest. With this positive trend, it would be easy to sit back and relax. However, I would encourage you to take advantage of this situation and invest in your dealership. And, the first place to start is training!

Unfortunately, many powersports dealers often operate with the mindset of “Who has time for training?” I would turn that response around to say, “Who doesn’t have time for training?” Every phone call, every customer interaction, every deal jacket is an opportunity for training if you have the right mindset. Let’s consider the following value sets when thinking about the benefit of training in your dealership.

Improved employee performance – When your powersports employees receive the necessary training, they are more likely to perform their job effectively. Throwing a new employee onto the sales floor or adding responsibilities to a team member without training is a recipe for failure and a walk out the door. Make sure your employees understand all of their responsibilities within their role and watch their confidence soar. This confidence will enhance their overall performance, which can only benefit your dealership.

Categories
Business Growth Dealership Training Powersports Market

Navigating Subprime Paper

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

In the last five years, lenders have been competing for more powersports business. Some loosened credit requirements and extended loan terms, while others evaluated the use of alternative data to more accurately determine a person’s creditworthiness.

However, powersports dealers still struggle getting subprime paper bought. When my team is in the store and we see this struggle play out, we always ask how much effort is being put into maintaining lender relationships. The simple fact is, the stronger the relationship, the more willing a lender will be to negotiate and buy outside of their criteria.

So what does it take to develop strong lender relationships? When pondering this question, think beyond complete and accurate applications. It takes communication and the ability to manage expectations.

Do all your team members know lender criteria like the back of their hands?

It’s never a good idea to randomly submit an application hoping for an approval. This process increases each lender’s Look-to-Book ratio, and angers customers when they start receiving a bunch of denial letters in the mail. Each team member needs to clearly understand each lender’s criteria and only submit loans they know will be approved.

Categories
Business Growth

Keep On Keeping On

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

We are halfway through a very interesting year in retail powersports. If you had planned for continued low motorcycle sales and increased ATV, UTV sales, congratulations! You’ve planned successfully and hopefully are managing well. Going forward, you’ll need to stay the course. The forecast for the second half of this year and all of 2020 appears to be equally bumpy. In fact, Black Book recently questioned whether the powersports market would see its typical price spike in Q3.

The Economy

On June 19th, the Federal Reserve chose to keep interest rates steady in the near term, but retained an option to cut rates as economic risks mount and inflation remains stuck below their target. Amid continuing trade tensions and slowing global economic growth, the Fed is preparing for the economy to take a hit and is keeping an interest rate ace up their sleeve.

There are other indicators of a stalling economy. A subdued global economy, increased corporate stock buybacks, and some spikes in lay-offs will keep business bumpy throughout 2019 and into 2020. Significant peaks and valleys in the stock market have caused unrest. The good news is that investors are predicting another recession in two to three years, meaning a recession may still be a few years off.