By knowing its customers, Team Mancuso Powersports in Houston has grown from a pair of Harley-Davidson dealerships into a thriving six-store group, now with an additional four metric/European dealerships.
Management became aware that many of their Harley customers used other products, too. By adding some other product lines, they could better serve their H-D customers on an ongoing basis.
“Some of those guys were ranchers and boaters and racers, so we knew that we had a good Harley base,” said Darrell Harry, chief operating officer of Team Mancuso Powersports. “We felt if we added some of these other products, we would be able to better service our Harley-Davidson customers that had other needs.”
Along the way, Team Manuso has put production at a premium.
“We work as a team and do everything to have fun, but not at the cost of performance. We want everybody to know that we’re not an entitlement company,” Harry said.
Harry estimates that Mancuso will sell about 4,500 units in 2012, with about 39 percent of them pre-owned.
“We have a strong certified used bike program, where we thoroughly inspect bikes for operating and safety conditions and then we have a warranty and buyback program to back that bike up,” Harry said. “We put heavy emphasis on not putting out the cheapest used bikes, but the best used bikes, and they come with a satisfaction guarantee.”
About 50 percent penetration on extended service plans in metric stores and up to 70 percent in the Harley stores are key drivers of F&I growth at Mancuso.
“And that’s all part of our shared pay program. When someone sells an extended service policy, every one of the managers benefits,” Harry said.
Cross-training managers has produced profits in F&I, and created a team-first approach to the department.
“We really promote that concept of working in unison as a team and not being protective or your own little profit center, but looking at the whole deal,” Harry said.
With total 2012 P&A sales of about $10 million and general merchandise sales in the $3.5 million range, Mancuso isn’t missing many potential sales.
“We try to look at that throughout the stores — are we capitalizing? So once again, the guys do participate when accessories are sold to a motorcycle, both the sales managers can benefit by selling accessories at the point of sale of a motorcycle.”
“We realize that you make the profit at the point of sale of the product, but you make more profit by retaining that customer and getting referrals from them. And that is driven by their experience after they have made the purchase.”
A marketing database that has been built over the last decade now has more than 30,000 email addresses, which has kept Mancuso’s advertising budget low.
“The cost to send an e-mail to 30,000 people is $10,” Harry said. “In the powersports business, it is very difficult to get in front of the right people, because only 2 or 3 percent of society will own a motorcycle. We put our emphasis on those people that we know have bought something from us rather than just going out and trying to develop customers that have never been in our stores and trying to figure out where to find them.”
A first-in, first-out approach ensures that the oldest bikes of the same or similar make or model will be out the door before the newer addition.
“We have a non-current high degree of focus from our web page advertising or any e-blast that we do, so once something becomes non-current, we really get focused on it and look through all the programs the manufacturers may put out.”
What attracts employees to your dealership?
“We have really heavy emphasis on the team,” Harry said. “We look for general managers who really understand the importance of having people work under them that feel a part of their team, and have fun doing what they are doing.”
Location: Houston, TX
# of Locations: 6
Full-time employees: 170
Year founded: 1982
Principal/Owner: Johnny Mancuso and John “JT” Thompson
OEM brands: BMW, Can-Am, Ducati, Harley-Davidson, Honda, Kawasaki, Piaggio, Sea-Doo, Suzuki, Triumph, Vespa, Victory, Yamaha