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

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 for training topics we can address: sam@samspowersportsgarage.com

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

You 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?

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NewsletterIssue No. 26 | APRIL, 2014

Sam Dantzler

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THE GARAGE– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

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,

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.

What’s NewSam’s Powersports Garage Website Upgrade

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

isn’t meant to usurp the P&A Manager’s power, nor is it meant to replace your ordering system or Open-To-Buy. It is meant to be a systematic guide to carrying inventory in necessary amounts on your floor, and not relying on your manager’s “gut feelings” or current fashion sense. It should be reviewed and adjusted by the manager prior to submission. Isn’t the selling history available to a manager through the DMS, you ask? Sure it is, but unfortunately few managers actually use it. Recently, Triumph adopted a similar process to Harley’s, in an attempt to encourage dealers to carry styles and inventory they may not normally choose. With multiple options to modify and return orders, this is a low-risk way to “try out” different products on your floor and reach a demographic you may not already be hitting. It’s amazing that big box retailers have 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

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current Inventory Manager predict that trend too, or is it reasonable to try new product offerings with limited risks? Change.

A NEW SALES PROCESS– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

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.

THE TESLA MODEL– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

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…

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Enjoy It While It’s FreeHow 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 two-post 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.

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?!?! |

by Neil Pascale

Industry PartnerNeil Pascale

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 neil.pascale@dominionpowersports.com.

Think AboutThis...Two 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.

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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? |

Sam Dantzler

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