Powersports dealerships are destination points that customers visit with intention. The intention is to see if a powersports product is something they’d like to own or can even afford.
The fact that a customer drives to a dealership usually indicates that they have some discretionary income, or believe that they do. If they didn’t, why would they come in? So, it is almost guaranteed that each customer is interested in purchasing something.
But what percent of people in America actually own a motorcycle? I ask many powersports dealerships this question and receive a variety of answers that usually fall somewhere between 15 and 50 percent. Their answers seem logical if you think of all the people that are out riding on a warm spring day. However, the answer can be quite surprising — only 3 percent of Americans own a motorcycle, according to the latest Motorcycle Industry Council statistics.
An equally important statistic for dealerships to consider is the average closing ratio. That ratio for a dealership is somewhere between 10 and 20 percent, usually closer to the 10 percent side. Most people within the industry know this, but it seems that we never turn the equation around to make it say that 80 to 90 percent of the potential customers that walk in to a dealership leave without purchasing! The reason this is so important is it proves that we are often too focused on the smaller percentage that are buying, and not focused enough on following up with the 80 percent that are “just looking.” Many of the latter group spend their discretionary income in other industries and end up purchasing bigger houses, new vehicles, vacation packages, plasma TVs, swimming pools, etc.
Most of us in the industry know that powersports products are the most enjoyable products out there, but our potential customers forget. Remember the old saying, “Out of sight, out of mind?” If we properly follow up with customers, we can keep the joy of riding in the forefront of their mind and increase our sales. Here are a few tips for proper follow-up:
Following up with potential customers is not difficult, but it is a choice. If we choose to remain the same and change nothing, ironically, nothing will change! Another option is to educate ourselves to perform more professional and consistent follow-up so we can compete with our competition in other industries.
Tory Hornsby, general manager of Dealership University, was drawn to the powersports industry 10 years ago when he turned his passion for motorcycles into a career. Hornsby, father of three, worked in nearly every position in the dealership before becoming a general manager. Click here for reuse options!
Copyright 2006 Powersports Business