Pat & Son Service Center – Annville, PA – June 2, 2008

CONTACT
Pat & Son Service Center
1500 N. State Route 934
Annville, Pa. 17003
717/867-4406
www.patandsonservicecenter.com
OWNER
Eric Patteson
BUSINESS PROFILE
In these tough economic times, having something to set your business apart can make a huge difference in customers’ minds. It could be something as simple as a calendar packed with customer events or “while-you-wait” oil or tire changes. At Pat & Son Service Center, the company offers a service for its customers in the off-season few other dealers have: indoor storage. It’s not just indoor storage for select customers at a small facility, either. All customers who store their powersports products with the company get covered storage. This is especially noteworthy because the company sells, services and stores RVs in addition to ATVs, motorcycles, PWC, snowmobiles and UTVs. Pat & Son is in its third generation of family ownership with Eric Patteson. His grandfather started the company selling Kawasaki products in 1976. Pat & Son became incorporated in the 1980s and added Arctic Cat snowmobiles and select Polaris products. The company is a Kawasaki full-line dealer. The company’s location is ideal, Patteson says. Situated in southeastern Pennsylvania between Harrisburg and Philadelphia, Pat & Son benefits in customer traffic from the major highway it sits on.
GREATEST CONCERN
While it is good to be diversified at times, it’s a strategy that comes with plenty of challenges. One of those is staying on top of all the lines and the promotions that go along with them, Patteson says. One tactic that some retailers use to avoid this problem is to designate a “product champion” for each line the company carries. The champion is responsible for knowing everything about the line, in addition to training appropriate additional salespeople about it as well. The champion becomes the point person at the dealership for both customers and manufacturers, even determining product mix and what to order for their line at some companies.
WHAT’S HOT
“It’s probably smaller, entry-level motorcycles,” Patteson said. This isn’t because Pat & Son has a younger demographic, but because of economic conditions, he adds. “Fuel prices are driving more people to get into the industry,” Patteson said. Those newcomers are almost always looking to start out with a reasonably priced entry-level bike, where they won’t break the bank paying for it and get the benefit of higher fuel efficiency than an automobile would have. In parts, tires are the best selling ticket for the dealership. On the accessory side, more customers looking to improve the protection they have for their ride has led to a surge in helmet sales.
CUSTOMER BUYING TRENDS
An increasing number of customers are looking for financing for their powersports purchases, Patteson says. Pat & Son does not have an in-house F&I department, but it works with its manufacturer partners to get products into customers’ hands. Patteson estimates nearly 80 percent of the units the dealership sells are financed with manufacturer incentives, such as six months same as cash. Younger customers are just looking to keep their payment cheap, Patteson has observed.
PARTS AND SERVICE
Working quickly and efficiently is a major driver in Pat & Son’s service shop. To do that, the company relies on well-trained technicians, including an Arctic Cat-certified master technician. The shop runs with three, full-time techs. A part-time person does much of the dealership’s uncrating and prep work. “We try to stay on top of everything,” Patteson said. “We rarely have more than a week’s backlog. Others in the surrounding area have machines out two to three weeks. We keep it short so the customer’s not out of their unit any longer than possible.” Pat & Son works with several major distributors to offer a wide variety of parts and accessories for its customers. The product mix leans more toward the motorcycle and ATV crowd rather than snowmobiles, Patteson says. “Mostly because snow hasn’t been really booming during the last couple years,” he said. He rarely advertises in traditional avenues for the parts, accessories or service departments, but Patteson does like to run occasional promotions for the departments on Pat & Son’s Web site.
PROMOTIONAL HOME RUNS
There is power in numbers. Pat & Son partners with other local powersports dealers to get as much bang for the buck as they can, collectively buying advertising. Kawasaki dealers in the area pool their resources to get radio ads on the air regularly, as well as ads on local cable every once in awhile. The company also does some print and billboard advertising. Otherwise, word of mouth recommendations play a large role in growing the business, Patteson said.
WORDS OF ADVICE
“I think the main focus has to be customer service,” Patteson said. “One disappointed customer will tell everyone he sees. Keep them satisfied; that’s the No. 1 goal.”
—Lisa Young