Newsletter
Issue No. 26 | APRIL, 2014
GARAGE TESTIMONIALS
I have spent a great deal of my professional life in the
auto industry. During that time I have had the great pleasure
of listening to some of the very best speakers that industry has to
offer. None of them come close to delivering their messages in the passionate and
powerful way you did yesterday. To say your presentation was profound would be
an understatement. Your unique style and personality are unmatched. – Jay Forrest,
GM, Wye Heritage Marina
As always, please continue to give us feedback on the website and suggestions
Sam Dantzler
for training topics we can address: [email protected]
Change
“ The only way to make sense out of change is to
plunge into it, move with it, and join the dance.”
— Alan Watts, British Philosopher
Y
ou have new staff. You have new customers. New
technology forces new models of advertising
and awareness. Managers have become owners,
and owners are snatching up new stores. The industry
is changing for everyone. The OEMs are no longer
sleeping through the recession. New models have
launched, although I have to say that I question Honda’s
latest addition,
the NM4. The
MIC (Motorcycle
Industry Council)
stats continue to tell
us that motorcycles
are becoming
more acceptable in
society than ever.
So the obvious question is, “How are you handling it?” If
you are like most, the older we get, the more resistant to
change we become. Sometimes it’s just easier to bitch
about why “they” had to change, and then ask someone
else where to get the information or workaround. Or, you
can just embrace it.
When did personal accountability leave the building?
When did we start delegating common sense? When
did we stop reading operating manuals? When did it
become easier to shoot something down before drinking
it in?
FACEBOOK, APPLE IOS7
–––––––––––––––––––––––––––––––
Facebook changed its layout in 2013. I hated it.
Apple changed its operating system to iOS7 in 2013. I
hated it. Looking back, I was pissed off that the colors
made my phone look like a toy and not a business tool.
Really? That’s what I got pissed about? I simply couldn’t
see through to the advancements in versatility and
improvements, as I was hung up on the colors. I even
spent time talking to others, both live and on Facebook,
who gave credibility to my rants. I can’t get that time
back. Of all things to focus time and attention on, I could
have just accepted it and moved right along with my
day. But, change is hard.
ECOMM FROM THE OEMS
–––––––––––––––––––––––––––––––
Dealers can’t possibly carry all the products out
there. Even with one OEM, it’s overwhelming. The idea
of product obsolescence (any product older than 12
1
Continued p. 2
isn’t meant to usurp the P&A Manager’s power, nor is
it meant to replace your ordering system or Open-ToBuy. It is meant to be a systematic guide to carrying
AL
inventory in necessary amounts on your floor,
GO
and not relying on your manager’s “gut
uy
o-­‐B
$ feelings” or current fashion sense.
n-­‐T
e
NT
Op
U
O
e
c
AM
It should be reviewed and
feren
if
D: D
R
$ $ WA
R
FO
$
adjusted by the manager
E
s e NC
c
le
$
A
n
L
e
sa
BA
fe r
y ’s
$ RY
da
Dif
o
O
t
prior to submission.
T
f $
o
EN
t
V
s
os
$ se
IN
-­‐) c
ha
s ce $ ct (
u rc
ale
en
TE Isn’t the selling history
tra l: ’s s
’s p
fe r
$ DA
Sub tota oday tory oday
Dif
t
t
b
n
f
$
Su (+) nve st o
d
I
$ ses
Ad rent (-­‐) co
available to a manager
ha
s r
ce $ u rc
ale
Cu tract en
’s s
’s p
l:
fe r
$ Sub tota oday tory oday
Dif
t
t
b
n
through the DMS, you ask?
f
$
)
u
e
S
+ nv
st o
d (
I
$ ses
Ad rent (-­‐) co
ha
s r
$ u rc
ale
Cu tract ’s s
Sure it is, but unfortunately
’s p
l:
fe
$ Sub tota oday tory oday
Dif
t
t
$
Sub (+) nven st of s d
I
e
o
d
t
$
s
c
n
A
few managers actually use
ha
s (-­‐)
rre
$ u rc
ale
Cu tract ’s s
’s p
l:
$ Sub tota oday tory oday
t
t
$ it. Recently, Triumph adopted
Sub (+) nven st of d
I
$ ses
Ad rent (-­‐) co
ha
s r
$ u rc
ale
Cu tract ’s s
’s p
l:
a similar process to Harley’s, in
$ Sub tota oday tory oday
t
t
b
n
$ Su (+) nve st of
s
d
I
$ se
Ad rent (-­‐) co
a
h
s
an attempt to encourage dealers
r
$ u rc
ale
Cu tract s
p
’s
’s
l:
$ Sub tota oday tory oday
t
t
$ Sub (+) nven st of to carry styles and inventory they
s
d
I
e
o
d
t
A ren (-­‐) c
as
h
s
c
r
ur
ale
Cu tract s
p
s
s
’
’
l:
may not normally choose. With
Sub tota oday tory oday
t
t
Sub (+) nven st of d
I
ses
Ad rent (-­‐) co
ha
s c
r
multiple options to modify and return
r
t
u
c
u
ale
C
tra l: ’s s
’s p
Sub tota oday tory oday
t
t
Sub (+) nven st of orders, this is a low-risk way to “try out”
d
I
ses
Ad rent (-­‐) co
ha
r
u rc
Cu tract ’s ’s p
l:
Sub tota oday tory oday
different products on your floor and reach
t
t
b
Su (+) nven st of
d
I
Ad rent (-­‐) co
as
h
r
a demographic you may not already be
u rc
Cu tract ’s p
l:
Sub tota oday tory t
b
n
)
u
S
+ nve
hitting. It’s amazing that big box retailers have
d (
I
Ad rent r
Cu
a coveted senior-level position of Buyer, usually
requiring 2-5 years of a “GM-caliber” experience
to even apply for the gig. So, I ask, “Who’s ordering the
inventory in your store, and what makes him/her
qualified?” Who the hell thought guys would be wearing
skinny jeans and flat-billed hats these days? Did your
months) has dealers
stocking “thinly”
at best. And if the
industry data is right,
80% of us go to
your website PRIOR
to visiting your
store, not INSTEAD
OF visiting your
store. When 97%
of America doesn’t
ride, is it really
problematic if the OEM gets me interested in motorcycle
gear because I bought a belt buckle via Ecomm? What if
I bought a motorcycle branded shirt
from Lucky? What if all that actually
CAUSED me to become interested
enough in a bike to wander into your
store? Is it really so far fetched?
What if (as I do) I browse your entire
inventory online from my hotel room
because I simply have no time to
go visit the (anemic) selection at
your shop? What if I did that, then emailed your Parts
Manager to, “...get that cool shit for me!”? Is that so
problematic? Change.
AUTOMATIC INVENTORY REPLACEMENT
–––––––––––––––––––––––––––––––
Harley has been running their CIM (Collaborative
Inventory Management) program for years now. It
Continued p. 3
What’s New
Sam’s Powersports Garage Website Upgrade
THE GARAGE
–––––––––––––––––––––––––––––––
assign courses and reset exams for department staff,
track employee/departmental progress, and cancel and/
or suspend their subscriptions, all in one location. There
are also pre-requisites in place now required before
taking upper level courses, as well as testing parameters
that can be reset by the GM if a student fails the exam
too many times. We’ve also added a new section called
“Fire-Side Chats,” which will showcase interviews with
some of the top performers in the country
to discuss best practices. Yes FDR, I
stole that from you.
So, with all of the changes happening to (and for)
your great big retail world, we too have been tweaking,
rewriting, re-shooting, and improving the content and
access to The Garage. Why the change? Quite simply, we
weren’t making it easy enough for our users.
We are currently beta testing our new website with
a handful of subscribers. Changes include a more
intuitive experience and a new
Dashboard. The Dashboard
changes are meant to allow
GMs total control over
their subscriptions. It will
give them the ability to
add/delete employees
instantly, grant different
levels of access to individual
staff members/managers,
2
THE TESLA MODEL
–––––––––––––––––––––––––––––––
current Inventory Manager predict that trend too, or is
it reasonable to try new product offerings with limited
risks? Change.
A NEW SALES PROCESS
–––––––––––––––––––––––––––––––
I realize this “straight to customer” model
has been shot down by many states now.
Tesla has made it very clear that this is their model, but
I’m not a fan. However, Triumph has made it very clear
they are investing heavily in their dealers. They are
doing it through Boot Camps, 20-Club reimbursement,
and even employee hiring trade-offs for free flooring.
Triumph understands it needs its dealers for continued
success. That said, the OEM is indeed offering their
motorcycles online. Their attempt to sell (new) bikes
online is not to circumvent the dealer, but rather to reach
certain locations where dealers are not servicing. Yes, I
understand that a dealer will ship a bike to the fringes
of civilization if given the opportunity. But, if the OEM
website can offer the experience and get a commitment
(at full retail, plus freight and set-up), and the dealer can
reap the profits of the incremental sale, is this really an
issue? Slow down and look at what’s being proposed.
Do you really think the OEM would blow out an existing
several hundred dealer network in order to jump into
retail sales? Could this model, instead, drive business IN
to your store once people get hooked on motorcycling?
I get it… you don’t want the precedent set for OEMs to
push dealers out. Understood. But, is it so far fetched
to think an OEM would want brand representation in
parts of the country where it currently is sub-par? If so,
isn’t there a win-win through state dealer association
protections, instead of nixing the idea altogether?
Change.
Did I cross the line on that last one? Have you now
labeled me an OEM Kool-Aid drinker? I’ll let the cards fall
where they may on that. I digress…
A two person approach challenges the fundamental
core of how we’ve sold bikes for years. Some have
deemed it impersonal, shallow, and just like “the car
guys.” (I was as guilty as anyone for slamming this
perspective.) But, that’s the EASY response because
it’s forcing us to look at a potential major overhaul of
our sales process. That said, how much staff turnover
do you have in your store? Is it easier or harder to train
someone on steps 1-4 vs. steps 1-6 of your sales process?
And, allowing the salesperson to NOT have to deal with
the negotiations helps them solidify the relationship.
Isn’t that what we want them to do anyhow? Why fight
it so much instead of understanding the merits of why it
works? Change.
FLATS FROM THE LENDERS
–––––––––––––––––––––––––––––––
As of this writing, FreedomRoad Financial has moved
to a flat-rate percentage of the contract for finance
participation, as opposed to the traditional rate spread.
That move has pissed off more than a handful of dealers,
as witnessed by the conference calls I’ve been on lately.
The Big 3 frustrations are:
> Taking away one of our big products in Finance
> Killing our PUS (Per Unit Sold)
> I don’t like the lenders dictating our business
How many deals get refinanced in the first few months
after taking delivery of the unit because the F&I Manager
held too much rate? Is that product (rate) truly in your
customer’s best interest? Would an extended warranty
or maintenance contract not be better suited? Removing
the spread on the rate forces F&I Managers to focus
on selling the product with inherent value. Some of
the highest PUS numbers in F&I are currently being
held by dealers who don’t allow F&I Managers to max
the rate spread, but rather focus on the products. The
compliance comes from the structure of the pay plans,
with higher commissions paid on the maintenance plans
and warranties—and it works. Change.
3
Continued p. 5
Industry Partner
Neil Pascale
Maybe it’s a store contest—if you like this post, qualify
for a $25 gift certificate—where chances are, you’ll see
more interaction than usual.
Then, follow that with the post on the big P&A
sale. Because your previous post received so much
interaction, your second post—the important one—has a
better shot of going higher in newsfeeds because of all
of that prior post activity.
Now, if somebody could just tell me what happened to
free college tuition?!?! |
Enjoy It While It’s Free
How do you know when you’re old? When you
start a sentence like this, “When I was a kid…”
And yes, I admit, I uttered those words just a few
days ago. My daughter was talking about which college
she wants to attend when I threw this out, “You know,
when I was a kid, I went to community college for two
years for free.”
This is true. (Both the college thing and the fact that
I’m now older than dirt…)
You know what our kids are going to be saying when
they approach middle age? “You know, when I was a kid,
Facebook was free…”
Because, I bet it won’t be by the time our kids are old
enough to worry about their kids’ college tuitions. Until
that time, enjoy free Facebook while you have it.
For those of you who are frustrated about the lack
of consumer interaction you’re seeing on Facebook,
here’s a tip for you. Some people refer to this strategy
as “priming the pump.” This is a two-move or twopost scenario to bolster readership on what is—from a
business perspective—an important post.
Here’s how it works: Let’s say you’re planning a big
sale on parts and accessories. Since you’re hoping to
move some inventory, you want as many Facebook
followers as possible to see this post. So, the “priming
the pump” strategy calls for you to create a post that
will get as many comments and interactions as possible.
Think About
This...
Neil Pascale is the Industry Communications
Manager for Dominion Powersports
Solutions, a dealer solutions company that
includes DX1, ZiiOS, PowerSports Network,
Cycle Trader and Traffic Log Pro. He also
leads two dealer educational efforts through
the Dominion Powersports Solutions’ The Pulse, which
includes the industry’s largest regular webinar series, and
an industry sales and marketing group on LinkedIn. He can
be reached at [email protected].
by Neil Pascale
T
wo important Facebook notes for you:
If you haven’t already checked out our Pulse webinar on successful powersports Facebook
dealers and their strategies, visit this link to view this hour long webinar for free:
Powersports Facebook All-Stars
Did you know there’s new technology that allows you to manage both your Facebook and dealership
website from one piece of software? It’s called DX1, and we at Dominion Powersports recently
introduced this to the industry. Let me know if you would like to check it out by emailing me.
4
The only constant in our crazy-ass world is change
itself. The fact that you are reading this (or any industry
content) is proof enough that you are light years ahead
of your coworkers and competitors who simply react
to the conditions around them. Don’t be so quick to
shoot things down without seeing the situation from all
sides. Every change is an opportunity to do something
different. Embrace it. Own it. Then kick its ass.
As for the Honda NM4? I’ll give that rig a rip—I give
you my word. I’ve currently got a love affair with a Ural,
so who knows? |
FAQs
Your Questions Answered
I’M LOOKING FOR A CERTAIN TOPIC OF
TRAINING THAT ISN’T ALREADY AVAILABLE IN
THE GARAGE—WHERE CAN I FIND IT?
We gladly welcome your feedback, and are always
looking for new ideas on how to add to and improve
the content on Sam’s Powersports Garage. If you
have training topics you’d like us to cover, that you
either can’t find on the website or aren’t covered
in detail, please visit our Feedback page and share
with us your suggestions on what you would like to
see added. Or, you can send an email directly to us
Sam Dantzler
at [email protected].
WHERE’S THE SAM SHOW?
APRIL
Visit us online:
samspowersportsgarage.com
7 Los Angeles, CA
9-10 Chicago, IL
15-16 St. Louis, MO
21 Colorado Springs, CO
23-24 Pittsburgh, PA
29-30 Atlanta, GA
MAY
1 Dallas, TX
4-7 New York, NY
12 Ontario, Canada
14-15 Charlotte, NC
16 Destin, FL
19-20 Grand Rapids, MI
21-22 Dallas, TX
28-29 Las Vegas, NV
JUNE
3-4 Spokane, WA
5-6 Winston Salem, NC
10-11 Odessa, TX
23-24 Fort Myers, FL
5