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Peak Dealership Performance® Newsletter
Number 22

Strap on your helmet, 2010 is here!

What do you have in the works for the New Year? Do you have aggressive new sales plans? Or perhaps, new marketing ideas? Have you set your goals and planned what you'll have to do to have a good year? If you haven't, it's time to get moving.

In reviewing our Ruthless Data Dealers we have uncovered interesting real-time trends regarding revenue. In motorcycle sales, one of our pilot dealers already has 14 motorcycles sold as of January 19th. Another dealer, who is twice the size, has none. Amazingly some dealers are way ahead of the curve with parts and accessories sales up 9.04% and pre-paid maintenance penetration up a stunning 73.4% year over year.

If there is one thing every dealership needs right now, its revenue. You need cash flow to keep the doors open and the lights on or soon it could be lights out. Here are creative ways to get you ahead of the curve in 2010. They're fun for you and important to customers. So grab your helmet, let's ride.

16 Ways to Generate Revenue NOW!
  1. Shift your service department into overdrive.

    Review and cross reference all the bikes sold with any recalls, updates or service needs. Offer free pick-up and delivery to perform the services. Then while the bikes are in the shop, identify performance upgrades, chrome additions and other needed work with the customer.

    For example, while you're replacing a worn rear tire it's the perfect time to add a chrome sprocket cover and belt guard. Going with ape hangers? Great time for chrome controls. Replacing the cam chain tensioner? Great time for performance cams. You get the idea.

    Revenue generation is about helping your customers identify winning ways to improve their ride. They get an upgrade and you improve your business. It's a wonderful reciprocity.

  2. Launch it.

    It's time to get rid of that obsolete, dust-covered riding gear and other accessories. If most of your gear still has AMF on it ... It's time to rethink things. Look to E-bay and Craig's List to quickly attract bargain shoppers while maintaining price integrity in your store.

    Free up the space. Free up the dollars. It's a new year and a new you.

  3. Done yet?

    Take a cue from Jiffy Lube. How fast can you turn around a small job or a quick oil change? Do you offer a quick in and out service? How about a day where all you do is quick jobs?

    Customers expect this kind of turnaround for "normal" service work. Do this and the dollars will come. I know all the reasons you can't do while you wait or same day service, work on how you can.

  4. Let the Games Begin.

    Find out your average year to date P&A ticket dollar amount and play a game to see who can beat it. If the your average ticket is $107 and you can see the customer only has $82 of gear in their hands you know it's time to swing into action and put add on selling into overdrive.

    "Hey do me a favor, have you looked at ...."
    "While you're here you should ..."
    "Have you seen this ... You gotta have it."

    Then every time an employee meets or beats the daily average their name goes in a bucket for a prize drawing or a spiff. Make sure you publically recognize them at the end of the day or the week. Or come up with your own variation.

    However you do it, the point is to create a fun environment where competition thrives and your efforts are focused on beating the numbers. Of course, you have to know your numbers!

  5. Smoke ‘em.

    And we mean the phone lines. Have your business manager calling customers who've purchase motorcycles, didn't get an extended service plan and are still eligible. CALL THEM. EMAIL THEM. TWEET THEM. You simply must reach out to these people.

    One dealer in Texas, asked his business manager to do this. The business manager didn't want to. He thought customers would think he was pushy. He started calling and guess what? Customers actually thanked him for calling. An amazing 85% of people he called signed up for the plan.

    It helps if you develop a workable script or do research to find warranty claims they may have had. Plan, prepare and execute this idea today.

  6. You've Got to Move It, Move It. You've Got to ... Move It!

    Wanna sell more stuff? Move it around more often. It doesn't matter if it is a motorcycle, accessories or riding gear. Move it to a high visibility location in the dealership and create a new display. You will be shocked to discover the interest it creates.

    "When did you get this in?"

    "1983."

    We used this technique with a dealer who was having a hard time selling Dyna models. Moved the bikes to a higher traffic area and ... bada bing. Sold three Dynas in one week.

  7. Hammer Time ... Literally

    Advertise a trade-in weekend for helmets and offer a nominal amount for trade helmets. Customer brings you an old helmet you give consideration on the purchase of a new one.

    It's different. It's strategic. And it increases revenue.

    Of course you have to destroy the trade-in and that's the fun part. Have a place on the showroom floor where customers can destroy their old helmet with a hammer.

    Fun, loud and will definitely get people talking.

  8. Like Your Investment Portfolio ... it's Time to Diversify.

    It's time to diversify your customer base. The XR1200 isn't for your leather vest customers. You have to go after this performance rider. Put some Stortz or Termignoni pipes and some other go fast goodies on one and head to your local sport bike night.

    Find where the Ducati, BMW, Triumph crowd hangs out. These riders typically have more than one bike and that XR will look better in their garage than on your showroom floor.

    It's time to expand the scope and reach of your marketing. Marketing to the same crowd over and over again will get you the same results over and over again.

  9. Rat -a-tat-tat:

    Here's another group that deserves your attention. Go to the rat-rod car clubs and tat shops with your Dark Custom motorcycles. These units aren't targeted at the sport bike crowd or the leather vest crowd. Also try snow board shops and other extreme sports hang outs. Take some bikes out and start talking.

    At $7,899 for an 883 Iron these aren't grand-slams in terms of revenue but they are customers that you don't usually see. After a year or so they are more than ready to move up the ladder.

    Get out of your comfort zone and try going somewhere new.

  10. Black is the New Green

    Dressers are the new ZX-14. Kawasaki's ZX-14 and Suzuki's Hayabusa have been very popular with customizers for years. More and more they are buying Harley-Davidsons. Make inroads into that customizing community and their clubs by inviting them in and offering them some of the perks you offer your HOG chapter. You will attract an entirely new customer to your store. Those new customers like to spend money. Lots and lots of it.

  11. Adopt the Metric System

    If you really want to expand your customer base go after the metric bike crowd. You'll need a way to move their trades when you take them so get in touch with some of the metric shops in town and see who is buying bikes. Get comfortable with what you can sell at auction or on your floor. Advertise a step up to Harley event where you are taking metric bikes on trade.

    Have buyers on site for metric bikes and trading them in on Harley-Davidsons. It's time to stop making fun of people on metric bikes. If you denigrate their trade it won't work. If you are able to say "wow, that's a cool bike." And mean it, you'll succeed.

    So go the extra yard and adopt the metric system.

  12. Don't be too Cool for School.

    Being too cool costs you money. The guy that just showed up in a neon power ranger leather suit might be looking for a different kind of ride. The guy in the safety yellow Aerostich suit probably rode more miles than your whole store did last year. Sit him on a new dresser and talk about his last trip to Alaska. The community of riders is changing in lots of different ways; try to reflect the changing times while to matching your customers. Be inclusive.

  13. The 1% Rule

    Increase your prices by 1%. Yep that's right across the board increase your prices.

    Now before you lose your mind and start filling my inbox with profanity-laced emails, hear me out. We need a new way to think about what a "good deal" really is.

    A good deal is when the customer feels well taken care of and you feel well compensated.

    Simple as that.

    1% is a negligible increase for consumers. They like you. You provide value. Are your people friendly? Do they know what they are talking about? Do they go the distance for your customers?

    See you provide terrific value for your customers and your due commensurate compensation.

    1% has a negligible impact on your individual customers, but collectively it has a big impact on you. A measly 1% increase could mean thousands of dollars of increased revenue.

    Don't say, "Yes," don't say, "no," just think about it.

  14. Like Barkin' for the Yak Woman.

    This line from the movie Christmas Vacation always makes me laugh. "What's your son doing?"

    "Oh he's got great career prospects; he's working at the local carnival barkin' for the yak woman."

    And you know there's something to this idea.

    Have a barker. For busy times like Friday nights and Saturdays, set up a display table for doing product demonstrations. Have your loudest, friendliest, most fun employee stationed there and feed them a case of Red Bull.

    • Heated gear: "Go ahead put it on, see how warm it is ... here's how it works."
    • New GPS stuff: "Here's how you program it."
    • FXRG Gear: "Here's why this is the best gear ... "

What great new product do you have that you know would sell if people only knew about it?

  1. I'll Make Him an Offer He Can't Refuse.

    Everyone loves a good deal. Take those items you just can't sell and set-up a "Make Me an Offer" table. That obsolete stuff is tying up cash you could be using to stock stuff that will sell itself. Arm an employee with authority to move this stuff, strap on a change belt, have fun and make offers. Turn the old stuff into cash.

  2. Hey how come you charge so much?

    Increase your service department labor rate by $5 or $10 above the competition. I got this from my friend Bill Joseph. Customers would invariably ask, "Hey how come your labor rate is higher than the other guys?" That's when you swing into action and explain the differences in your service department.

    "Great question! In our dealership's service department there are three reasons people choose to do business with use for a little more money. First ... " Then you know the drill.

    So there you have it, 16 ways for you to immediately start to generate revenue for you and your dealership. Now, quit reading this and go sell somethin' will ya?
Looking for a Few Good Dealerships

Attention TALONes Dealerships:
Now accepting pilot dealers for a new real time data portal. See your dealership sales information graphically and real time. Free for you, just give us feedback on this important business tool. Every dealer shown … LOVES IT! Interested? Want more information?
Email: Mark@PeakDealershipPerformance.com
(Although we are proud of our long and ongoing relationship with Harley-Davidson this is NOT a Harley-Davidson program.)

Feel free to share this info at your staff meetings, use it for training sessions, or in conversations. Co-workers not signed up? Forward this to them. Our goal is to help you be, have and do more for you and your customers.
Earn more. Stress less. Make a difference.
  1. Strap on your helmet, 2010 is here!
  2. 16 Ways to Generate Revenue NOW!
  3. Looking for a Few Good Dealerships
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