{"id":88,"date":"2017-07-26T20:36:54","date_gmt":"2017-07-26T20:36:54","guid":{"rendered":"http:\/\/efgintelligence.com\/powersportsswitchback\/?p=88"},"modified":"2017-07-26T20:36:54","modified_gmt":"2017-07-26T20:36:54","slug":"make-plan-second-half-2017","status":"publish","type":"post","link":"https:\/\/efgintelligence.com\/powersportsswitchback\/2017\/07\/26\/make-plan-second-half-2017\/","title":{"rendered":"Make a Plan for the Second Half of 2017"},"content":{"rendered":"
\"Glenice
Contributing Author:
Glenice Wilder
Vice President
EFG Companies<\/figcaption><\/figure>\n

Did the first half of this year leave you cautiously concerned or hopefully optimistic? Depending on your product mix, you either experienced strong sales in the off-road powersports area or a soft market for new retail bikes. Several OEMs also reported single digit declines, and the average wholesale price for on-road vehicles was down about three to six percent. However, the average wholesale price for off-road vehicles remained strong, showing a four percent increase. With this level of uncertainty, what steps should you take to ensure a successful second half of the year?<\/strong><\/p>\n

Savvy dealers will focus on maximizing every possible sale. And that means maximizing profit per unit \u2013 PRU. There are many factors involved in calculating the PRU including overhead, OEM rebates and marketing charges, etc. But one clear way to increase PRU is through maximizing F&I and funding as many deals as possible.<\/strong> \u00a0So let\u2019s look at the deal after<\/u> the customer says \u201cI\u2019ll take it!\u201d<\/p>\n

Where the Real Work Begins<\/h3>\n

It\u2019s likely that a customer has entered your dealership to purchase a bike \u2013 not a maintenance package or a vehicle service contract (VSC). Chances are, they don\u2019t even know these products exist \u2013 or any of the other F&I products you have to offer. The concept of protecting their purchase has probably not crossed their mind. They are simply interested in getting on that shiny bike and hitting the road.<\/p>\n

Maximizing the PRU requires giving the consumer a view of the broader picture. Whether you offer simply a VSC and GAP, or also tire protection and overall maintenance, give the customer a clear description of all the products available \u2013 and why they are important to them. A menu is a useful way to disclose product offerings effectively and compliantly, increasing product penetration and PRU.<\/strong> <\/p>\n

There are four components to menu selling:<\/p>\n

    \n
  • Defined transition to F&I<\/li>\n
  • Obtaining signatures<\/li>\n
  • Risk discussion<\/li>\n
  • Benefit presentation<\/li>\n<\/ul>\n

    Transition<\/strong> takes the customer from \u201cI\u2019ll take it\u201d to the dealer saying, \u201cLet me help you purchase this bike.\u201d By clearly outlining the steps involved in F&I<\/strong>, the customer will know what to expect and will be less likely to speed through the process.<\/p>\n

    The signatures<\/strong> step is the \u2018checks and balances\u2019 part of the process. At this time, the dealership team member has the opportunity to verify that every document has been presented to the customer with appropriate signatures,<\/strong> file it accordingly, and ensure that all necessary documents are complete.<\/p>\n

    The risk discussion <\/strong>is a critical step in the process. Review any manufacturer warranties that come with the motorcycle, while highlighting all the components that lack protection.<\/strong> If your dealership stocks pre-owned motorcycles that are outside the manufacturer\u2019s warranty, highlight the fact that the bike comes with no protection to begin the risk discussion. This will help build value for the F&I product presentation<\/strong>.<\/p>\n

    The final step is the benefit presentation<\/strong>. Highlight the F&I products offered, tying them in to the risk discussion and any other information gathered from the customer during the sales process. Is this a first-time buyer or bike collector? Is the vehicle intended for recreational use or a primary means of transportation? Dialogue selling and active listening during the sales process will provide these details.<\/p>\n

    After reviewing each product, go back to the menu and begin closing the F&I discussion<\/strong>. Confirm pricing verbally, including the base vehicle payment and rate using the product menu. Re-affirm with the consumer that they can take delivery at the agreed-upon base payment. Finally, use the menu to ask for the sale while ensuring the consumer knows the protection options available and the cost breakdown.<\/p>\n

    Following this methodical approach can significantly increase your F&I product penetration, maximize your PRU, streamline your operations, and keep everything compliant.<\/strong> Take a look at your current product penetration rates to set your monthly and quarterly production goals for the next half of the year. Make sure your team is on-board with competitive pay plans and ongoing training. Keep good records and hold your team accountable for both successes and training opportunities.<\/p>\n

    Next month, I\u2019ll discuss the second portion of increasing PRU \u2013 converting cash deals to finance.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Did the first half of this year leave you cautiously concerned or hopefully optimistic? Depending on your product mix, you either experienced strong sales in the off-road powersports area or […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[13,2],"tags":[7,6,43,44,5,42],"class_list":["post-88","post","type-post","status-publish","format-standard","hentry","category-business-growth","category-powersports-market","tag-efg","tag-efg-companies","tag-fi","tag-finance-and-insurance","tag-glenice-wilder","tag-menu-selling"],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7NG7I-1q","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/posts\/88","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/comments?post=88"}],"version-history":[{"count":1,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/posts\/88\/revisions"}],"predecessor-version":[{"id":89,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/posts\/88\/revisions\/89"}],"wp:attachment":[{"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/media?parent=88"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/categories?post=88"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/tags?post=88"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}