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Business Growth

Maximize Value For Millennials

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

Ah, Millennials. They are a much maligned – yet coveted – consumer. I truly believe this demographic will single-handedly change how goods and services are bought and sold. So, who are they and how should a powersports dealer capture their sale?

The Millennial generation was born between 1980 and 2000. They are the biggest in history, even bigger than the Baby Boomers. Financially, this group won’t reach their peak earning age until 2020.  However, Millennials already control a large chunk of liquid assets, an amount that is forecast to grow to $7 trillion by 2020. By 2025, they are expected to generate 46 percent of all U.S. income.

This generation spends money very differently than their Baby Boomer elders. According to a Goldman Sachs Research report issued this year, Millennials are far less likely to purchase something because it’s convenient. Quite the opposite. They will delay a purchase in search of a lower price or a better deal. While they do spend money – they focus on value rather than impulse.

Millennials are the first completely digital generation, living almost entirely on their smartphones. They are research obsessed and will quickly become the expert on an item before they purchase. With this information in hand, how do you tackle this knowledgeable, value-driven customer?

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Categories
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”