Service Providers

Creating a profitable PG&A department

Mark Mooney Blog“Where’s the Owner’s Manual? A practical guide to running a profitable, stable motorcycle dealership” is one of the many informative and educational classes being offered this year at the Powersports Business Institute @ AIMEXPO Oct. 16-17 in Orlando, Florida. It doesn’t matter which department we are talking about, it’s what we do and how we do it that sets us apart. This class will delve into this and much more. Here’s an excerpt from “Where’s the Manual?” which, by the way, you’re going to receive, but only if you attend. …

The parts department is your biggest asset when it comes to improving your absorption rate. And it’s interesting that dealers who have turned their attention toward building parts departments that significantly cover dealership expenses have certain traits in common.

The more profitable parts departments do what needs to be done to be successful. What they stock or don’t stock is not based on what can be obtained elsewhere, or obtained at a lower price. Their mindset is: You can’t sell more of what you don’t have; there’s a retail price for a reason, and discounting is not the norm. They actively sell what they do stock, and they have adequate staffing to do the job. There are a lot of other reasons they’re successful, and we’ll get to those.

The parts departments that are less profitable generally have an aversion to stocking something that they know is being sold for less somewhere. It doesn’t matter where it’s being sold for less; it’s just being sold for less. The Internet is the biggest excuse. “Folks just want to come in and try something on, so they can leave and buy it somewhere else, so why stock it?” Discounting is a pretty normal practice for these dealers. There’s not enough staff to go around. Focusing on what needs to be done takes a rear seat to just keeping your head above the smoke.

The more profitable parts departments focus on what needs to be done. The less profitable don’t have the time. The more profitable focus on what they stock. The less profitable worry about what others stock. One believes in retail and sells accordingly, while the other believes they have to discount everything to sell anything (there’s the Internet again). One has the staff to get the job done, while the other … you get the picture. This may seem extreme as examples go, but it’s closer to the truth than you might want to admit. If improvement is going to happen you have to look hard at what’s not happening.

What’s not happening in your dealership? Are all your departments maximizing the opportunities they’re being given daily? We will discuss these topics and much more. We’ll delve into every department during this 75-minute session with practical insight, sharing information and ideas together. Join us at the “Where’s the Owner’s Manual?” seminar at the Powersports Business Institute @ AIMEXPO in Orlando, Florida. See you there!

Mark Mooney is director, retail performance for Pied Piper Management Company LLC, a Monterey, Calif., company that works with motor vehicle manufacturers and dealers to maximize performance of dealerships. One of Pied Piper’s most popular services for the powersports industry is Pied Piper Prospect Satisfaction Index (PSI) sales mystery shopping to help turn more motorcycle shoppers into motorcycle buyers. Learn more about the Powersports Business Institute @ AIMExpo sessions here, and click here for free registration to AIMExpo.

Contact: mmooney@piedpipermc.com
Website: www.piedpiperpsi.com

 

 

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