Nov. 10, 2008 – Dealer principals: The envy of everyone sitting in a cubicle
If you are like most motorcycle dealers I know, everything you own is tied up in the bricks and mortar, equipment and inventory of your dealership(s). Given the options that is not such a bad thing.
Think about all of the cubicle-bound people of the world whose only option was to place what money they had on Wall Street, via such great, solid names as Enron and Merrill Lynch. Or maybe they thought to extend themselves with more home than they could afford, counting on the certain appreciation. Comparatively, your investment seems pretty sound.
True, the market value of your dealership might be down, but that is an economic concept unless you are trying to sell. The big difference between you and those who sought the security of a cubicle in a blue chip company is that you can do something to improve your investment.
At some point in your life, or perhaps your daddy’s life, you took a chance, left the security of a “real job” and plunged into something you really wanted to do. If you have been around for any length of time, you have faced tough situations before. You have had to be creative and make a real commitment to your business in the past or you would have been long gone and sitting in one of those cubicles. Things do have to change again and it is only you, the dealer principal, the guy with all the money on the line, who can make the change. It is not going to come from a cubicle on Katella Boulevard or Juneau Avenue.
We have had a great response and a huge number of requests for the “Next Level” sales manual we offered. We had a number of comments questioning the constant reference to Harley-Davidson. The needed changes do apply to dealers of all brands, but at the moment Harley-Davidson dealers provide the best case study for everyone. For 18 years they have had what the English would call “good innings.” Harley dealers, with the support and urging of the Motor Company, truly raised the bar when it came to representation in the market place. The big flaw in the plan is that motorcycle sales were taken as a given. Just build them, ship them and they would sell. Of course, everyone at Big Orange got to be right for a long time. And, to be fair, during that period of time the product was significantly enhanced. Everyone will be able to learn from the adjustments good Harley-Davidson dealers have to make, including the Motor Company.
The first big change is to focus on is the only economic indicator that really matters to a retailer: How many people came in, and what did you do with them? As a dealer principal, that now has to be your primary waking thought. There is no piece of information that is more important. Live it and breath it! Imagine, your ole Uncle Ed rambling about traffic logs. That is not new thinking. We have not changed the procedure; we have changed the process. Next Level is not an easier way to run the dealership.
Any new solution raises as many questions as answers. As one dealer put it: “ I feel like I have a V-8 engine mounted to my 6-cylinder transmission.” At the end of October, I am conducting a retreat for the dealers and sales managers of my partner dealerships and a few others who have actually implemented Next Level processes. We are not debating the value of giving 100 percent of showroom visitors a quality experience, having all price discussions conducted by a manager or the value of a directed and focused follow-up. What we are having to rethink is just what it takes to get it done and maintain optimum performance with the Next Level process. Staffing levels, management ratio, budget and pay plans are back to a plain sheet of paper.
I will let you know what we figure out. I know it won’t be easier and it is going to cost more than we used to spend. The good news is there are buyers out there we failed to reach in the past. It is not to say you have been coasting or looking for an easy place to ride, it is just the times demand most dealers make a change in where their primary focus is. Last month I wrote about the need to go beyond being a “good dealer.” We have to take the lead on this, the OEMs are not able to help and training companies clinging to automobile-type thinking are out of touch.
Yes, things are a lot tougher than they used to be. But I promise you can control your own destiny, and you are the envy of everyone sitting in a cubicle.
On a sad note
I would like to acknowledge the passing of an old friend and longtime business partner, Earl Small. He was a big man and a true optimist. Too large to worry, too noble for anger and too busy improving himself to have any time to criticize others. We will all miss him.
Cheers Ed. psb
Ed Lemco has been involved with the powersports industry for more than 30 years. Lemco, the former owner of Lemco Management Group, is the founder and executive director of the National Council of Motorcycle Dealer Associations. Lemco currently operates a call center for dealers in St Croix.