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Dealership Training

Subscription Training Delivers Profit

May closed out with powersports dealers feeling pretty good about the state of their business. According to a Powersports Business Online Learning Series poll, nearly one-third of responding dealers ranked the success level of their dealership as a 9 or 10 (on a scale of 1-10). It’s no wonder! April numbers continued their meteoric rise, with major unit sales rising 39.2 percent in April 2021 versus the previous year. With Spring in full swing and Summer just around the corner – and the rain subsiding for many – the forecast for the first half of 2021 remains very strong for both new and used units.

Despite continued inventory constraints and some concerns about labor and inflationary numbers, it looks like the powersports industry will have a banner year. But what if there was some additional profit to be had from unit sales? And not just small change, but measurable PRU? Those profit opportunities can be found in training.

This month, EFG launched a subscription-based training model which includes both digital and in-person options, delivering timely tools in a learning environment that works best for each employee. The service also supports the new digital retailing model now used by many powersports dealers. Dealer management can select their preferred subscription package across a wide variety of curriculum, benefiting from up to a 20 percent discount from standard training rates.

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Categories
Business Growth

Tired of Chasing Inventory?

While monthly sales numbers have certainly brought good news to retail powersports dealers, there is a flip side to the story. Recently polled dealers who attended a Powersports Business Kenect event shared growing concern about new unit inventory, with 78 percent of respondents noting they were very or extremely concerned. In Q1, 85 percent of dealers said their inventory was too low. With 72 percent of dealers reporting double-digit sales growth in Q1, it appears that the 2021 will be a year spent scrounging for inventory.

We all know that the best option to tackle the inventory shortage is to target the trade-in, but how do you convince people to trade in with you?  While stimulus money is easing near-term financial worries for many consumers, much of that money will be targeted toward paying off debt, delinquent rent, and other expenses incurred due to lost employment income. Educate the customer that their trade-in vehicle has value which can be applied toward their next powersports purchase. Contact recent customers and discuss their current situation. Are they using their motorcycle or ATV, or are they contemplating a new side-by-side? Capture details on the trade-in remotely and provide trade-in options that get them closer to the sale.

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Categories
Recruiting

Good Talent = Revenue

Good news! The retail powersports market continues on a roll! According to composite data from more than 1,650 dealerships in the US using CDK Lightspeed DMS, sales increased 23.9 percent in February 2021as compared to February 2020. Early results from the Q1 2021 Powersports Business/BMO Capital Markets Dealer Survey reflected that more than half of all respondents said business was trending above plan.

In general, a positive sentiment has also spread across several economic indicators. According to the U.S. Bureau of Labor Statistics, unemployment rates in each of the large metropolitan areas dipped below 10 percent in February. The stimulus at the end of 2020 ($900B) and the relief package signed in early March ($1.9T) equate to nearly 14 percent of US GDP.

However, there are a couple of wrinkles which could put a damper on that optimism. Inventory continues to be an issue, both in terms of units and parts for all makes and models. Many dealers responding to the Powersports Business/BMO survey listed lack of inventory as the number one issue impacting their business. Certainly pent-up consumer demand bodes well for driving traffic to the store, but there is another issue facing powersports dealers. What happens when you don’t have enough staff – or the right talent – to capitalize on that consumer demand?

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