Powersports Business Inspiring Success Through Market Intelligence
Most motorcycle dealerships fund their used inventory out of cash, and when cash is tight the outcome is often a reluctance to even consider taking a trade-in. On the other hand, we also know that the most successful salespeople make buying a new motorcycle from their dealership as easy as possible, and removing a shopper’s old motorcycle as an obstacle is often an important psychological step for the shopper to seriously consider buying a new motorcycle.
How can we make it as easy as possible to buy a new motorcycle when we know that we really don’t want (or more accurately can’t afford) a shopper’s trade-in? The answer is for the salesperson to put a “stake in the ground” up front; asking whether the shopper has a trade-in, then saying, “We would be happy to take your motorcycle as a trade-in … of course you will do much better selling it yourself … but if you just don’t want the hassle we will be happy to take it as a trade-in.”
By putting this stake in the ground, the salesperson has set trade-in pricing expectations; has communicated that the old motorcycle doesn’t have to be an obstacle; and has set the tone that the salesperson and this dealership will be helpful.
You are spot on, Fran!
And, I would add that dealers can safely and easily never turn down a trade by 1.) using National Powersport Auctions’ Value Guide (shows what units have been currently selling for @ auction) through their website, http://www.npauctions.com, and by 2.) having NPA sell the unit as a consignment.
As a matter of fact, if retail is slow, dealers can introduce a whole new revenue and profit center to their business by advertising that they buy bikes…regardless of trade intention…w/ the goal of selling at auction.