Let’s be honest, dealership cash flow is shorter than it has been in many years. Spending money now is not something you want to do but there is something you have to ask yourself – are you staying in business? We hope so. With that cleared up, let’s get started on 2010.

If you want to make an inviting business location then being clean, organized and professionally presented is step one in bringing customers into the store. That doesn’t mean you have to spend a lot of money! Then again, maybe you do need to spend big money and cannot do it right now. So assess your store and make an annual plan.

Look at everything outside, the parking lot, the signs, the lighting, paint – how do you feel now? Most of what I point out here is potentially big expenses. If anything is going to be done in this category, pick the biggest bang for the buck.

Now walk in the store and take a hard look from the door. This is what the customer sees! If you are the one who manages the “look” of the store…be hard on yourself. Has the unit inventory been moved and then cleaned recently? Every few days? Every week? How about P&A? Do you have relevant and seasonal displays that are exhibiting lifestyle? Lifestyle display is more important than proving you have enough inventory to make it impossible to get though the showroom.

Then there is the service department. I’m one who believes that there should be clear view of the service department for the customers. There are two reasons for this. One is that the customer feels more “secure” about their unit and two; it forces you to keep the department clean and organized. If you have technicians that don’t take organization and cleanliness seriously, have them check out the racing community and what their operation looks like. The customer expects to have the same experience when they look at your service department. While you may not have the dollars for a racing garage, just get as close as you can get.

Assess your store every day. Look at the operation with a critical eye and then act on things as you can afford to make changes. There is no way to cover all that can be done to improve your dealership in a short article so put on your marketing cap and dive in! Next issue we will address action plans. We’ll address how to make them, how to get the plan in place and keep it going.

Copyright © 2009 Neil Frame All Rights Reserved.

Companies spend big bucks on consumer research. What colors do customers prefer? What product names are most likely to elicit interest? What music makes customers want to buy?

Sometimes big corporations can’t see the wheel for the spokes. You don’t need a PhD in Psychology to figure out what customers want. You just have to ask them.  And then most importantly listen to their response.

A recent survey of customers discovered several sales person behaviors which turn them off from buying. More than a casual annoyance these behaviors were cited specifically as reasons that customers would not do business with either the sales person or the establishment.

If you recognize yourself in any of these scenarios, just play it cool, don’t freak out and understand there are some customers who won’t do business with you as a result of these behaviors. So if you’re hopeful to sell something … you may want to change your ways!

Customers say their some of their biggest sales turn offs are:

1 – “Being called buddy or pal …”

Or sport, ace or guy, or any of those quasi-cool names that come in and out of vogue.  For many people the moment you call someone by one of these name substitutes you create a negative impression.

It’s been said that the sweetest sound to someone is the sound of their own name. And it’s true. Enter into evidence the “cocktail party” effect.

This effect is the ability of a person to identify and focus on one speaker in a room full of conversations. Think about a time when you have been at a party with a room full of people and many conversations going on enthusiastically over raucous party music. Do you remember what it was like?

Then from across the room you hear someone mention your name. For abilities which are continually being researched, the human auditory system can ignore most other incoming information and concentrate just on the conversation in which you’ve heard your name.

Scientists have studied this phenomenon and have many complicated and technical theories as to why this happens, but for salespeople the important point is simple. People are interested in conversations that are specifically about them.

But you’re thinking, “I have lots of customers. There’s no way I’m going to remember all of their names.” Well you don’t need to remember first and last names. First names are fine. Then there are many ways of remembering names; using them multiple times after first hearing them, using memory aids like association techniques are all helpful.

Also keep in mind you don’t need to know everyone’s name all the time. If you are working in sales, review your daily sales appointments for that day, so you are familiar at least those people with you have specific appointments. Same holds true for your service manager or any other department that is setting and keeping appointments.

And if in fact you have forgotten someone’s name, you have to just summon up your courage and say, “I’m sorry I’ve forgotten your name.” And then work on remembering it.

Sport. Buddy. Pal. When you call someone by one of these generic names you really send the message to them that they really are not important. Whether you mean it or not, consciously or subconsciously, customers interpret it as you don’t care specifically about them and that you really are just considering them another number on the way to your commission check. So, “Hey pal, don’t do it.”

2 – “Salespeople who are too much on my side.”

This raises customers’ suspicions immediately. Rarely do salespeople today say things like, “I like you. You have an honest face.” But some are still saying things almost as ridiculous. For example, “I’m getting to know you, so here’s what I can do.” Or “Let me go to bat for you with my manager.” (By the way the ‘I’ve got to go talk to my manager has been so vilified from the customer perspective that even if you do have to talk to your manager some customers think some sort of manipulation is underway.) “Here’s an insider’s deal” or “I want to give you a deal, it’s my manager I have to get past.”

Understand the “natural” dynamic between customer and salesperson especially in the initial phases of a sale. Avoid “saying” you are on the customer’s side. What you really want to do is show the customer that you are on his or her side. How can you do that?

• Hustle. Move quickly and with purpose. Show customers you are working for them.
• Listen with your eyes. When a customer is speaking with you. Look them in the eyes.
• When you are with that customer, be with that customer and not thinking of what else you could be doing.
• Find that motorcycle in the back that may truly fit the customer’s needs but so far others have been too lazy to pull out.
• Use the internet to research a motorcycle or product comparison.
• Get them the brochure you promised.
• Call them with the information they requested.
• Don’t let your ego stop you from asking another person for the answer to the question.
• Don’t be afraid to let them look around or comparison shop. If you, your store and your products and pricing are good. They will be back.

Customers are wary of salespeople. It’s the nature of things. You know you’re not that kind of a salesperson, but a first time customer who has never met you doesn’t. So don’t tell them how good, honest and on their side you are … prove it to them!

3 – Being told “if you have any questions feel free to ask.”

You are just trying to make the customer feel comfortable and welcome. But some customers out there are really jaded in terms of their shopping experiences. They perceive this as obvious and just a ploy to interact. They think thoughts like, “you’re a salesperson, and I’m a customer. Of course if I have questions I’m going to ask. Don’t state the obvious.”

So how can you deal with this jaded attitude? Tell them something they don’t know or that isn’t obvious. Like:

• How your store is organized. Your merchandising and signage probably does this very well (or at least it should) but one thing customers find helpful is a bit of orientation. Let’s face it, our stores do have a lot of stuff and for many, especially first timers or those that haven’t been in since you re-merchandised our stores can be confusing.Say something like, “Hi! My name is Mark and welcome to Big Deal Motorcycles. Just so you can navigate a bit the store is organized like this: new motorcycles are over here, pre-owned are here and …”The idea isn’t to be a Graceland Tour guide rather a quick orientation so that customers can spend time on their own looking at what brought them in, not confused and trying to find something.
• Show them what’s hot, different or unique. Another idea instead of telling customers who are shopping that they should feel free to ask questions is to show them what is the latest and greatest in your store.
  • “Hi! My name is Mark and welcome to Big Deal Bikes. I know you probably want to look around a bit, but if you’d like to see the motorcycle that made this month’s cover of Cycle World, it’s right over there.”
  • “I see you’re looking at helmets. I just wanted to point out that this particular helmet was just rated in Motorcycle Consumer News as being one of the best on the market.”
  • “In case you might be interested in the rear of the store our owner has brought in three motorcycles from his collection. If you get a minute you should check them out.”

Of course these are just some examples and you will be able to come up with more on your own. Just remember that some customers really dislike being told the obvious. They may feel as if you are being condescending. Avoid that possibility by not being the typical salesperson. Don’t tell them what they know (i.e. If you have questions ask me) rather and tell them something they don’t know (how your store is organized or what special in your store).

4 – Staring at people as they move through the store.

This is of course a retail equivalent of stalking. Customers know that you are there to work with them. You know you are there to work with them. You don’t need to keep customers under an at-all-costs surveillance. They will not mysteriously be transported by the mother ship out of your dealership.

Relax. Go about your business

5 – Shaking hands too aggressively.

Ok, he-man, we know you go to the gym. You don’t need to show it by crushing your customer’s hand. It doesn’t matter whether your customer is a man or woman no one likes to be in a dealership and feel as if they are in some sort of carnival strong-man greeting contest. Don’t squeeze. Don’t twist. Don’t get too close. Don’t pump furiously as-if your customer will somehow begin spewing crude-oil making you the first human oil well millionaire. Just shake hands firmly, look your customers in the eye, smile and release. Say it with me now, Shake, look, smile and release. Shake, look, smile and release. Shake, look …

6 – Pinky rings.

Enough said.

7 – Hovering.

This is the body distance equivalent to staring at someone. Many customers, even if they have been in your store before like a little alone time. They like to see, touch and think on their own, uninfluenced and unhurried by the presence of a salesperson. Let them. And no, standing seven feet away and pretending to dust your fake ficus plant doesn’t count. Customers can tell when you are just doing busy work to stay in the area. Space is important. If a customer wants to look around your store by themselves let them. They will feel more comfortable about you and your store, and then probably ask better questions, moving them even closer to a purchase.

8 – Asking to help them too many times.

Michael Gerber, author of the E-Myth, did a bit of research and discovered why sales people ask customers, “May I help you.” Even after all that has been written and discussed about how that is an ineffective opening sales question, sales people still use it. Gerber concludes that sales people either subconsciously or consciously sales people ask that question because they know what the answer will be: “No thanks. Just looking.”

Why would sales people then ask that question? It gets them off the hook from an uncomfortable situation. Some people want to avoid: 1.) Talking to people who might be less than accepting 2.) Talking about products they are unfamiliar with 3.) Doing any work.

And sometimes sales people don’t have any other approach. So they keep repeating the same, “May I help you.”

Come up with other ways of interacting with customers. (Or check back with us. We’ll do some cool ones in a future column.)

9 – Steering to the expensive stuff.

Customers know that products come in all sorts of price ranges. They also know that some are a better value than others. Customers also know salespeople are often commissioned. And without properly gauging what a customer needs, immediately steering to the expensive items can turn some customers off. They feel as if you are more interested in your commission check than you are their needs.

Ask questions about what kind of riding or what kind of performance they need from the products. Use your skills to discover their needs. Then direct them to the right product that has the functionality your customer is looking for, regardless of price (and by the way it may be the most expensive item you have, but now you have done the work necessary to make the recommendation and customers will understand why you are showing them the big money item).

Do this and they will be back again and again and again. And this will be much better for you and your dealership than a one time high dollar sale.

10 – “When salespeople tell you to smile.”

You’re just trying to be enthusiastic. You’re just trying to communicate that shopping in your store is fun. Be careful. You never know what is going on in a person’s life. They may have just received bad news or are thinking about an important issue in their life. And actually what this communicates is that you are making a judgment about them and that they are somehow deficient.

Instead try mirroring their expression. Not in an over exaggerated, mocking kind of way, but rather one that shows empathy for what they are feeling. Then if you want customers to understand how much fun your dealership is, show them, don’t tell them. Smile when interacting with other employees, smile when you discover a cool product or tell a great motorcycling story, this will send the message that your place is fun and exciting and you will show them instead of telling them. And who knows even if your customer is having a bad day, they may just smile after coming to see you.

Understanding what customers are thinking is an important aspect of successful selling. Use these ideas to help you better understand what you do and how those behaviors can be interpreted and misinterpreted. Avoid these closing killers and remember your performance matters.

© 2009 Mark Rodgers All Rights Reserved.

Why Conduct A Store Evaluation?

The evaluation is a method in which the store owner and staff can quickly identify potential problem areas both inside and outside the store that may be reducing potential turn-over, which results in lost sales and profits.  It’s also a potential way of identifying problem areas that may be causing lost customer base of existing and new customers.

A regularly planned evaluation will condition yourself to see your store objectively (the way customers see your store).  In other words, to force you to take off the rose-colored glasses and see your store as it really is. Since most retailers “live” in their stores, they become too acclimated to their environment and eventually never see the “trees for the forest”.

An evaluation helps the store owner develop a game plan that will enable them to correct any problems that may have been identified on a timely and scheduled basis.  It will give them time to make adjustments before the “smoke” turns into a “fire”.

Once the evaluation is completed and acted upon, will give the store owner the ability to maximize sales,(especially impulse sales), to enhance the overall image of the store.  It will help to create greater loyalty among existing customers while attracting a growing base of new customers to the store.

To create a positive “First Impression”, in the eyes of every shopper that walks into their store-everyday!

Strategy # 2: Take Control!  Create a Customer Traffic Flow Pattern Throughout Your Store

What Is Traffic Flow?

Traffic flow is a retail concept that seeks to separate “customer space” from retail selling space.  Customer space is that area a shopper uses to move from place to place in your store.  What you as a store owner must decide is, is your store “customer controlled?” or is it “store controlled?”  In other words, does your store tell the customer where to travel and what to see, or does your customer go where he or she pleases?

Traffic flow is the life blood of retail store health and success.  Effective traffic flow (the loop), will provide opportunities for every shopper to be exposed to all key merchandise areas of your store.  Without a designated traffic flow pattern (the grid), many customers will get accustomed to your environment so much, that they generally travel down the same path on each and every visit and return to exit out the same path.

Paying careful attention to your store’s traffic flow patter in on of the most important considerations a retailer will be one of the most important considerations you will ever make.  Neglecting this critically important design element will result in dissatisfied customer, lost sales and decreasing profits.

A traffic pattern can be developed as simple as applying commercial aisle tape by 3M, number 471-2” wide to any hard surface floor material.  Those with fully carpeted surfaces can create their traffic loop in their store by cutting a path in the carpet and installing vinyl tile squares.

Strategy #3: Invest in Quality Fixtures

Fixtures are an “Investment” not an “Expense”

In order for any store owner to be successful in merchandising must first have the right tools in which to merchandise.  Those tools are fixtures of top quality and possessing the three main qualities of a “good” fixture:

1. Adjustability- The ability to adjust horizontally in small increments to be able to maximize cubic space in the retail environment.  Example: Shelving on a gondola unit or glass shelves in a showcase.
2. Flexibility- The ability to adapt to assorted accessory add-on equipment to adapt to product changes within a merchandise category, Example: shelves with peg hooks with wire baskets on slatwall or peg board.
3. Mobility- The ability to be mobile with the least amount of effort by one individual.  Example:  Garments four way rack with casters, glass tower and base with casters.

Strategy #4: Practice the Seven Basics of Merchandising

Merchandising Creates Sales

Effective merchandising of your products will do more to increase sales than any other single thing a retailer can do.  Merchandising is a term that describes the promotion of merchandise sales, by coordinating production and marketing, and by developing advertising, display and sales strategies.

Merchandising is both a science and an art.  To effectively merchandise your products you must understand something about the psychology of buying, your customers, the products you sell, and how those products should be displayed in your store.  To maximize your efforts each and everyday you’re open for business, you must learn and adapt these seven basics of merchandising as if they were a part of your “soul”!

1. Every day is Grand Opening Day!  The store must be Clean, Clean, Clean!  No Excuses!
2. Front face your products daily!  Each and every product on a shelf or hook must be brought forward to give the impression of “fullness”.  Don’t leave the impression of your products being half-full or half-empty!
3. Spread to fill!  This technique helps maintain that “full” in-stock look each and everyday.  By taking excess merchandise next to an empty hole on the shelf or empty peg hook and pulling product from behind to fill the hole, will leave the impression you are always in stock on your products. Don’t wait for the “empty hole” to fill itself waiting for the next order to come in, there may be another UPS strike!
4. Color block your merchandise!  Color blocking is a technique that takes advantage of your product’s packaging and color of loose products such as, apparel and merchandising them in a vertical fashion rather than horizontal.  Since customers are first attracted by color, then style and price is last, you’ll want to take advantage of this technique where possible in your store.
5. Practice the two finger rule!  The two-finger rule refers to a technique that enables you to maximize the use of your vertical display space on shelves and other fixture systems.  The two-finger   rule states that your products are space so that the top of the product on a shelf comes within two finger widths of the bottom of the next shelf above.  This will vary as your products do because of non-uniformed packaging.  Your goal is to utilize as much vertical space as possible for the display of your products.
6. End-cap merchandising!  End caps generally refer to the end unit on a gondola type fixture with a base.  End-cap merchandise should be one-two “like” items and no others.  End-caps are your feature, promotional display areas in the store.  The goal is to use the end-cap display to set off the featured products from all the other products.  End-caps are used for general merchandise as well as sale or promotional products.  Change end-cap merchandise every 2-3 weeks as a golden rule.
7. Tonnage, Seasonal and Promotional Merchandising!  Tonnage is a retail term that refers to buying large quantities of an item and creating a special merchandising display unit.  Effective   tonnage displays will require commitment of buying large quantities of product.  These products are generally boxed goods and should never set on the sales floor.  Construct a raise deck or platform to raise the product off the floor, which shows the customer you respect the products you sell and in turn they will buy the product.  Just look at what the grocery stores do to their tonnage displays-how often do you buy from these units?

Merchandising is both a science and an art.  Some of the most effective merchandising techniques available to you involve nothing more than common sense.  Others involve some study, learning and application.  Do not hesitate to work with a professional store merchandiser to become familiar with the specific techniques that will benefit your stores success.

Strategy #5:     Hire, Train, and Retain Quality Employees

Developing a Winning Team

Winning stores recognize the importance of developing a strong team of dedicated, productive and customer-oriented employees.  Therefore, as you consider the human resource needs of your store, you must be very clear in communication your expectations to every potential employee.  Before you advertise to fill a position vacancy you must first have thought through your expectations for the position and for the person performing the duties of this position.

Prior to hiring any employee, you should give serious consideration to addressing the following tasks.

1. Develop a realistic assessment of you staffing needs for the next six to twelve months.
2. Develop specific job descriptions for every position you anticipate filling.
3. Believe that employees are the “most valuable asset” in your store.
4. Attract the “best” and “brightest” talent.  How? By better hiring practices, developing results-oriented training, recognize and reward for results, and believe in “People-Centered Leadership & Management”.

Strategy #6: Develop and Implement a Policies and Procedures Manual

Why you need an employee handbook!

As a business owner, you should make the creation of an employee policies and procedures manual one of your top managerial priorities.  The purpose of the policies procedures manual is to provide your employees with a comprehensive summary of your company’s policies, principles, standards, expectations and procedures.  It will address important matters such as; define company policies, to inform new hires, to establish uniform standards, to serve as a resource for answering employee questions, to promote teamwork, to maintain compliance with applicable laws and to facilitate employee orientation programs.

To create proper inventory turnover, you must first educate, teach and train your staff to be the best that they can be.  They must know where they stand within your company’s frame work and what their specific duties, responsibilities and expectations from you, are going to be.  It becomes absolutely necessary that every store operation or business, no matter what size, establish written policies and procedures manual.

Strategy #7: Make Quality Customer Service Your #1 Priority

Service, Service, Service!

Need I say more?  Without customer service, you as a retailer will be out of business in a “heart-beat”!  If you don’t take the necessary time and energies to train your staff on who pays their salary, and develop their skills in providing the best customer service available, you’ll be gone in a, “heart-beat”!   Everything you or your staff do in your retail environment, is under the scrutiny of the customer.  They will literally judge their shopping experience solely on the way they were treated that day.  If they felt neglected, insulted (through the five senses) or disappointed in their shopping experience, they will probably not return.  Can you afford the loss of a customer, (per day)?

Train your staff to be  service oriented individuals  with each and every customer and you will sell more products.  Customer service is the one price customers will always be willing to pay for.

Strategy #8: Practice ‘Perpetual Remodeling’

Define ‘Perpetual Remodeling

Perpetual remodeling is an on-going remodel program established after you have make a major remodel to keep your store looking its best each and every year.  By constructing something new on the outside or the inside or your store, you’ll always be considered a “destination” store, that customers want to visit because something new has happened and they don’t want to miss out.  All too often when a remodel is complete, it isn’t touched again for another 5-10 years.  When this happens, the store starts sliding backwards in image, style and newness which causes customers to start shopping elsewhere.  Customers want something new and fresh.  That’s why many consumers buy new cars, houses, clothes etc., every couple of years to make them feel good about themselves.  The customer will seek out those retail outlets that offer change, variety and accepting it as a way of life.

If you don’t change a little something in your store each year, your products are going to go to sleep.  Your customers will become as accustomed to your store environment as you. The more acclimated they become, the less they see when shopping your store which means fewer sales, especially impulse sales.  So, believe in that change is “good” as long as it’s controlled change with a plan every year and a budget!

Strategy #9: Plan for Future Remodels

Budget 1-3%

Each and everyday you open your doors for business you are making sales, (hopefully)!   Out of those sales you should, without thinking, take out 1-3% of gross sales to put away for your next major remodel or to do perpetual remodeling.  Keeping your store it great physical conditions will generate a tremendous amount of sales that could never be experienced by those who never remodel or do it every ten years.

This 1-3% could be used for many purposes including, on-going building repairs and maintenance, fixture replacement and repairs, new employee training, new employee uniforms  and store expansion.  Because everything “costs more than it costs”, you will have the needed funds for what needs to be accomplished.  It sure beats having to dig up a loan somewhere!  Save, Save, Save for that rainy day, you’ll be better prepared to react to changes to make your store the “Leader” not the follower.

Strategy #10: Make Every Day Grand Opening”

What is Grand Opening?

Grand Opening is more than what it appears.  Most people store owners and staff alike, believe Grand Opening is a “one-day to one-month” event and then it’s over.  They couldn’t be more wrong!  Can you remember your last Grand Opening and what it was like, excitement, newness, fresh, clean and sparkling?

Can you tell me if your store today still has that same feeling?  Probably not!   In most cases, Grand Opening is just an event just like a holiday, it comes and it goes.  Well, if you’re the “smart” retailer who wants nothing but sales will think and believe in that Grand Opening is everyday!

There isn’t any justifiable excuse for anyone in retail to let their store slip back into the dark ages after their initial Grand Opening ceremonies.  It must be on everyone’s mind each and everyday that their store is the best that it can be and to say to every customer, “today is Grand Opening”, come on in and shop.  Let the customer enjoy you Grand Opening on every visit and they will reward you by purchasing more of your products.

It’s up to you-”Success or Failure”?  You Hold the Key!

Copyright © 2009 James Rasmus All Rights Reserved.

In the past this concept has been called “20 Groups”. We call it “Business Groups” and we believe dealers should be able to expect more from their business group facilitators. Over time we want to address what is needed in group participation to make it successful for today and in the future.

Ask yourself why you have never been a member or why you aren’t a member any longer. We believe the reason could be the same in both cases. There is always a reason to update the procedures of a group organization and that hasn’t happened for decades. Same old plan that doesn’t focus on the individual dealer.

Why can’t the dealer have in-store evaluation and constant communication with the facilitator every month and still have group interaction – but EVERY month. That is what we call “groups 2.0”!

Do you really believe the composite reports you’ve seen in your group? Would you like to have an understanding of your financial statement and balance sheet? Does your 20 Group facilitator know the intricacies of your store and are all the other dealers getting great input from that understanding?

The above questions and many others are going to be asked and answered over the next few months. It doesn’t take much to know that asking questions and making good decisions will make you a winner!

You’ve made the decision to stay in business and we are here to help you make good business decisions. Please stay with us and let’s win together.

Channel Ideas has created the most revolutionary 20 Group, (Now “Business Group”) program ever. Call, email the T.E.A.M or visit our website…we’ve got the answers

Neil’s contact information can be found on the “Contact” page.

© 2009 Neil Frame. All rights reserved

The vehicles, products and services you provide are unique in the sense that all powersports enthusiasts will be interested in your holiday gift giving ideas and promotions.  Make customers aware of your promotions, coupons, events and more. Just remember that you’re the expert and customers will be coming to your site and reading your e-newsletters to see what you’re offering this holiday season! Run a new Holiday promotion this year or assess what you’ve done in the past and if it’s worked, offer it up to your customers again this year with even more excitement!  Be creative and have fun!

To assist you this Holiday season below are six website recommendations and ideas to get your website holiday ready.

• Holiday Homepage & Gift Guide: Once you have your Holiday plan of action in place I would start with your homepage. Make it festive but try not to overdo it with the holiday graphics! Simple is sometimes better.  Your homepage should provide customers with holiday gift giving ideas. It should be a guide that directs customers to other areas of your web site for more information or to purchase online.  If you have many promotional items, post the information on a dedicated page to display all of your holiday gift ideas and featured product.

• Holiday Coupons: This is one item that customers will use this Holiday season.  Setup a few Holiday coupons that customers can use online or at the store. Be creative and think as a customer!  What type of coupon would bring you into the store? This may also be a great opportunity to “blow out” some older inventory with the new year quickly approaching!

• Free Shipping: Free shipping is common during the Holiday season with many online retailers because it’s effective.  Many customers love the convenience of shopping online and free shipping is a great Holiday incentive. My recommendation is to establish a set amount that customers have to spend in order to receive free shipping. The standard minimum amount is usually $75 to $100 and setup a timeline for customers to take advantage of your free shipping promotion. Emphasize an “end date” for the free shipping and use it as a “call to action” for the customer.

• Send out a Holiday e-newsletter: Many dealers send out at least one e-newsletter a month and sending out Holiday e-newsletter is a must. In fact, send out a couple this December, promoting all of your holiday specials. Send out a newsletter the first week in December with all of your Holiday announcements and a 2^nd newsletter the 3^rd week with last minute shopping gift ideas or incentives.

• Social Sites: If you have a social site, take full advantage of it this Holiday season.  Provide your “Network of Friends” with gift giving ideas and make sure you have links back to your website for more information. Also, take this opportunity to wish everybody a happy and safe holiday season.

• Send out a Holiday e-greeting card: Make this one from the heart and the only purpose is to wish everybody a wonderful holiday season and to thank them for their patronage. You can use your e-newsletter tool to send out a personal holiday message to your customers.

Effective holiday marketing is something that certainly shouldn’t be done “last-minute”. As we all know “Communication is Key” and for 2009 make it a priority to have a plan in place as to what promotions you’re offering,  when to send out your e-newsletters, and if you do have a social site, promote your holiday specials and gratitude of thanks to your network of friends and contacts!

Peggy’s complete contact information can be found on the “Contact” page.

© 2009 Peggy Olson. All rights reserved

If you did you succumbed to one of the most powerful, persuasive forces ever to play out on the human psyche; a little thing called “social proof.”

And don’t think these movements are limited to citizens. Motorcyclists are influenced by these social forces as well. If you’ve ever tried to get your forks as long as possible, your bike as low as possible, your exhaust as loud as possible, your chrome as shiny as possible or your bike as fast as possible … you’ve been swayed by sociological forces.

This is the beginning of one of the fundamental laws of human persuasion known as social proof. Robert Cialdini, PhD. A Regent’s Professor at Arizona State University is probably the world’s most noted sociologist in the field of human persuasion. Cialdini has identified six fundamental principles of persuasion and social proof is one of the most powerful.

Persuasion is the idea of winning the hearts and minds of another. It doesn’t mean negotiation. It doesn’t mean meet you in the middle. It means full fledged commitment. You know as in … I buy it.

Cialdini states that we all succumb to these forces as automatic responses. For people to evolve we had to learn shortcuts. If we deliberated individual pros and cons of every individual event or situation, hey who would have developed fuel injection?

And it throughout mankind it means survival. Imagine you come upon a building with hundreds of people streaming out screaming at the top of their lungs … what do you do? Well you probably don’t start running against the hordes trying to get into the building! No. You head away from the building as fast as possible. Why? You’re not sure but if that many people are heading the other way … you sure don’t want anything to do with it.

This is the idea of social proof. And there are really two times when social proof is at its most powerful. One is if there is uncertainty in a situation. Take for example teenage smoking.

Uncertainty

Your adolescent years are fraught with trying to decide who to be and how to act. No better example can be found than in the age old fork in the road as deciding whether to smoke or not.

Arizona State University reports some concerning statistics regarding teen smoking. The likelihood that a teenager will take up smoking if they are troubled is 14 percent. If their parents smoke it’s 26 percent. If two friends smoke it increases 1000 percent. If at least three of their friends smoke the likelihood they will smoke themselves increases 2400 percent!

Similar Others

One of the other times when social proof is particularly powerful is when an action or activity is engaged in by others who are like us.

A Columbia University study helped prove this point. In an experiment with a lost wallet, researchers tested whether New Yorkers were more inclined or less inclined to return the wallet. When research subjects found out that recently arrived internationals were going to return the wallet only 33% also agreed they would return the wallet. When they discovered other New Yorkers were going to return the wallet, 70% of subjects were willing to return it.

________________________________________________________________________________________

SIDE BAR

First of all we need to make certain we use social proof ethically. You must ensure you have a valuable offer. Does your product, service or program yield real benefit to the customer?

Untrue or grossly exaggerated propositions will do little to help your business.

You should never use lack of understanding to coerce customers into making a decision. Use the power of persuasion unethically and you may convince customers in the short term but over time, you will lose their trust and their business.

Yes, offering your customers real value (and I don’t necessarily mean low prices) is the foundation to good business. If not, all the wiz-bang psychology on the planet will not help your long term business prospects.

But if you do have a “good offer” to make, using the power of social proof will radically increase the likelihood that you will be successful.

________________________________________________________________________________________

So how can we use the principle of social proof in our stores? Here are some ways you can leverage the power of social proof.

• Customer Testimonials.

When a customers says thank you for a product that you’ve sold them or a service that you’ve performed you are in a moment of power. And I can’t stress this enough it is that precise moment when you are most powerful. Not later that afternoon, not later that week but at that precise moment. When a customer says thank you to any member of your staff you should train all of your people to say:

“No problem! We are glad to be able to help. Maybe you would be willing help others. We’d like to share the good news of your experience so others could benefit. Would you mind jotting down a quick e-mail or letter describing what you’ve just told me so that we may share it with your fellow riders?”

Of course you should use the words and phrases that are comfortable for you and your staff, but everyone who is likely to get this sort of positive customer feedback should be able to make this statement smoothly and confidently, without stuttering or stammering. So role-play this statement and you will get more customer testimonials.

Then how do you use them?

• Public Bulletin Boards:

Have bulletin boards in “customer areas.” You could have one near the showroom floor, one outside of an office area, and of course one in the service write-up area. Then post specific customer testimonials in these places. As customers are milling around, they can’t help but read and be influenced by these incidents of social proof.

• Evidence Binders:

We’ve talked about evidence binders in previous columns but the idea is so important we need to mention it again. Get a three ring binder from your local office supply store. Get clear plastic slip covers. And then create sections by products or services that you offer. Then rotate your bulletin board testimonials into your evidence binder. Then have one in each selling area (motorcycles, apparel, accessories, or service) and if a customer is having a hard time making a decision, pull out your evidence binder and show the customer what others think about the item.

• Advertisements:

Have you ever heard one of the OnStar radio commercials? You know the ones. An upset mother phones the call center and she explains frantically how she has inadvertently locked he infant in the car along with her keys. Then the calm and confident OnStar representative soothes her mind while she unlocks the car via the satellite. Powerful, huh?

Well although you probably aren’t fixing anyone’s motorcycle from the VanStar 1 Satellite you can play off of this idea. Use your customer’s testimonial comments in printed form or for an even more powerful delivery if you are doing your own radio or T.V. spot … tape them! Then you are really leveraging the idea of social proof.

• Newsletters:

Have a section in your paper or electronic based newsletter. This is where you can reprint your customer testimonial letters in their entirety. Especially powerful if the letter ties in with some major theme of the newsletter, i.e. big ride coming up, preventative maintenance offer.

• Web sites:

You can pull phrases or quotes from your customers and “sprinkle” them throughout your web site. This make for interesting and powerful reading.

One dealer in the ultimate use of testimonials and similarity would organize his testimonial letters in his evidence binder by town. So when a customer would come in he would show not just other riders’ opinions but other riders from that person’s home town! Now that’s taking an idea up a notch.

• VIP clubs
  

Adventure Harley-Davidson, dealer principal Mike Davis and his business manager Randy Miller use the principal of social proof for their “VIP” pre-paid maintenance plan. They have created a very nice wooden plaque and engrave VIP purchasers’ names on metal plates and affix to the plaque which hangs on the showroom floor.

“I suggested the idea,” says Miller, “and people seem to like it.” Indeed. They are going gang busters with their pre-paid maintenance plan. Davis says, “Customers love seeing their name. You can see them pointing, smiling and showing it to their friends.”

See. Others are doing it. You should be too!

• Verbal references
  

It’s important to be able to use the idea of social proof quickly and convincingly with customers on the selling floor as well. For example if you are working with a customer and they raise a price objection, work social proof in like this:

“Hey price is important. But it’s only one of several considerations in a purchase decisions. And for many of our customers, it’s not the most important.”

Here we acknowledge that price is important. But it is just one factor and for many of our customers (social proof) it’s not the most important. By adding vocal emphasis on the words is, many and most you make this a powerful segue into your value proposition.

• Advertising

McDonald’s has leveraged social proof for years. We’ve all seen the statement under the golden arches “over 1 Billion served,” and it makes for a powerful statement.

How might you be able to leverage social proof in your advertising and marketing messages?

• Wall of Fame

Many dealers do this now. A wall of customer pictures with their new motorcycles. Always a great idea to show perspective customers other satisfied customers with their motorcycles. Want to spin the idea? Group them geographically or by model. If I’m looking at a model and I see others who though it was a good choice as well this just might influence my decision.

• Riding Groups

Ok the riding group thing has really been done, but Jayme Presel and Heather Haase of Stock’s Harley-Davidson in Manitowoc, Wisconsin have done it a little differently. Encouraged and supported by owner Dave Stock and general manager Dave Hermann, they created a women’s riding group. It started with 2 great to 10 then 24 then 54 and now 107 in just three short years.

They get together for rides and fun, wear matching bandannas and shirts (that the dealer buys) and go on weekend trips. They always come up with interesting places to go and every year go on a big 3 day, 800 mile ride. And talk about creative. On their second ride, they called it “Girls Ride, Too!” and had shirts printed to match. No wonder they are doing such good thing for customers, the dealership and the sport.

How creative could your people be given the opportunity?

Cialdini likes to tell the story of how when his son was about three he tried to get him to go into the pool without his inflatable safety ring so he could progress and learn to swim. He tried all sorts of sophisticated strategies. Then he hired some swim instructors to work with his son all to no avail.

Then one day he returned home to find his son in the pool without the inflatable ring. He ran over and asked, “What made you decide to no use the ring today?” His son replied, “We went to Tommy’s house today and Tommy is three and he doesn’t use a ring.”

There was no way in the world all of these adults were going to convince this kid of anything. Rather, he had to see another three year old doing it and his natural instincts kicked in. If he can do it so can I!

Social proof is one of the most powerful forces in how we as humans make decisions. Avoid this anthropological principle at your own risk. Understand how by showing similar others engaging in an activity, you can encourage others to participate in this great sport of motorcycling.

Come on! All the kids are doing it!

Copyright © 2009 Mark Rodgers All Rights Reserved.

Did you ever wonder why it is that some Motorcycle retail stores are more successful than others? In many cases, they will sell the same products, be located in the same geographical area, and draw from the same customer base. Yet, one store will thrive and achieve success, while the other languishes and seems to struggle just to keep the doors open. Why? One answer is that successful stores didn’t get that way by accident; they were planned. Long before the first product was placed on a shelf for sale a winning strategy was developed to ensure the success of the store. Every element of the store and its operation was planned and designed in advance in order to accomplish one goal: to stay in business and earn a profit. Contrary to the belief held by many retail store owners and managers, success is not achieved by luck or accident. Success results when you bring together careful planning and professional design, quality products offered at a fair price, and a genuine commitment to customer service and satisfaction.

Your potential for success will be dramatically increased and enhanced if you know something about contemporary store planning and design techniques and strategies. This chapter will give you an overview of what some of those strategies and techniques are, and how they can be applied to your store. Our objectives are: (1) to help you create a positive buying environment for your customers; (2) to help you increase your sales and profits; and (3) to help you enhance the image of your store on the outside and inside. [See Photos 1.2, 1.3 for examples]

STORE DESIGN – CREATING A RETAIL ENVIRONMENT

Planning the design of your store means much more than buying a few fixtures upon which to display some products. We have summarized some of the important concepts and components that make up successful store design and planning. Our intent is not to make you a professional retail store planner; rather it is to make you aware of important design techniques that you might be able to apply to your store in order to increase your sales and profits. A strong word of caution is in order at this point: do not, under any conditions, compromise on the quality of your store operation and the design integrity of your remodel project. If the techniques outlined in this chapter are beyond your capabilities and education, then we strongly recommend that you contact a professional store planner/designer as soon as possible. Too many owner/managers make the mistake of trying to do it all themselves in order to “save a few bucks” and end up making mistakes that cost many thousands of dollars more than in making the initial investment in securing the services of a design professional.

Do what you do best.
Hire the rest!

If you’re not a trained space planner/architect or come from a retail background, how are you going to know if you’re taking the right steps? Remember, it always costs more to do the same job twice!

ELEMENTS OF SUCCESSFUL STORE DESIGN

Before you begin your remodel/store-design you should first do a store review and analysis to see if your current building is worthy of investing the dollars required to make the change? Do you need to remodel, add on, build new, or move to a new location?

1. Location. Is your store located in an area designed to maximize sales? Is it easy to get to by your customers? Can your store be easily seen by traffic? Is there ample and convenient parking available? Is your store located in a safe and well-protected area? Does your location provide for expansion opportunities? Is your store large enough to accommodate your current products and future products?

2. Exterior. Look at your exterior. When was the last time you changed your store exterior appearance? The average change should be every 7-8 years to keep a fresh new look to your store to attract new customers. Over the years your store exterior will go to “sleep” if you don’t do something. Even a new paint scheme will wake up the average potential customer driving by your store, enabling them to “see you.” You’ll get questions like, “How long have you been here?” or “I drive by here every day and never noticed your store.” You need fresh new customers every year to replace those who no longer shop your store for many possible reasons. They either moved away, got a transfer or found another “like” store closer to home, or worse, never got the impression you were going to be here tomorrow. Long gone is the “Mom & Pop” business of yesteryear. You must look as if you have multiple locations and are not a fly-by-night retail business.

3. Developing an interior Space Plan to create the “WOW” factor. [See photo 1.4] A space plan is a comprehensive analysis of the internal layout of your store. The space plan design will include recommendations for the placement of your products, fixtures, lighting, sales area, offices, warehouse and storage, customer service areas, registers and equipment. The goal of space planning is to maximize the use of all your store space in order to sell more products. Hire a professional retail space planner, one who specializes in outdoor sports products, for example. Make sure they worked in the retail industry first before you hire them. (Architects design great buildings but 90% of them never worked in retail.)

4. Designing a Traffic Flow Pattern. [See Photos 1.5] Traffic flow: control the customer before they control you! Are customers drawn to all areas of your store on purpose, by design and intent? Do you make it too easy for the customer to come into your store, head straight to the parts/service counter, turn around and leave the same way they came in? Once the customer purchases a motorcycle they come back to the store to purchase “need” items such as tubes, oils, chains or to-order parts. Your parts counter then becomes the “eggs, milk and butter” of the grocery store. Ever wonder why they put those items at the back of the store? They are the main “need” items for their industry. Do the grocery stores make it easy for you to purchase those items? Are the customers being given ample opportunities to engage in impulse buying on the way to or from the area of their primary purchase? Developing an effective traffic flow pattern will help promote the movement of customers from areas that receive the greatest exposure to areas located in the rear or the more remote corners of the store.

5. Store Fixture Selection. [See photo 1.6] Effective store design and space planning will focus on determining the right fixtures for your products, merchandise and budget. Using the right fixtures in your store will help increase sales, make your store more appealing to all customers, and provide a more customer-friendly shopping environment.

Fixtures are an investment — not an expense!

Most retailers underestimate the cost of fixtures to the point of not doing what’s right for the store and the products to be merchandised. Space planning will help determine the budgets and to prioritize which fixtures are needed first, second, and so on. Invest in a retail space planner who knows retail and fixtures.  Don’t rely on vendor “free” fixtures, used fixtures, homemade fixtures or worse yet, “Dumpster-Dan” fixtures. That’s where some retailers rob the trash dumpster behind a store that’s remodeling and taking their throw away fixtures. Ask yourself, “Why are they throwing those fixtures out?” Would you pull out a sofa from the dumpster and put it in your house?

6. Color Analysis. Success in attracting new customers and selling your products can be greatly enhanced through the effective use of color on the exterior and throughout the store interior. Color analysis will include a consideration of the following areas of your store: the exterior, interior walls, flooring, fixtures, product arrangement, lighting, signs, and employee dress codes. Choosing the wrong colors or materials and finishes could turn against you instead of enhancing the store. There’s a lot of psychology in the use of color. Again, seek out those who know what colors would best suit your store design and the interior environment.

7. Product Merchandising. [See photo 1.7] A critical element in effective store design is the merchandising of your products. Merchandising refers to those techniques involved in promoting the sale of your store’s merchandise, including the selection, pricing, displaying, and advertising of your products for sale. Effective design and planning will seek to maximize the merchandising of all products offered for sale in your store. The goal of a successful merchandising program is to increase impulse buying, thus increasing overall sales on a consistent basis for your store. Proper merchandising will increase impulse sales, which can account for up to 65% of your overall sales. Unfortunately most single storeowners and 80-90% of the staff have never worked in any major retail environment prior to getting into the bicycle sports business. Merchandising is one of the “weakest links” in running and operating any successful retail business. The sooner you and your staff become “experts” in merchandise selection, advertising and displaying the product, the quicker you will see sales success.  Bring in those professionals that are capable of teaching and training your staff the “Seven Basics” of merchandising.

8. Signage Considerations. Successful store design will also focus on effective use of all signage, both exterior and interior. Professionally prepared signs and signage will attract more customers to your product lines and serve to increase your sales. Don’t create “graphic pollution”, pre-plan your signage usage with a signage calendar. Plan out your signage, advertising, product purchases and merchandising a year in advance. Know where your signs are going to be placed, the time allowed up and when they come down. Use manufacturer POP materials and co-op advertise your products to the fullest. A signage, promotional, and merchandising calendar will help assist you in these areas and you will be more competitive in the retail market for expendable income that you may be losing today to some chain store or big box retailer.

9. Store Lighting. Understanding what type and style of lighting to use with what products is a critical element in successful store design. Should you consider: Ambient lighting? Accent lighting? Task lighting? Track lighting? Direct or indirect lighting? Successful store planning and design will not overlook the importance of lighting as a source of increasing your product sales. Lighting can be a major player on why customers buy certain products and not others. Get the lighting expert to assist in the many choices of the types of lighting available and to ensure that what you choose will fit into your budget.

10. Employees and Staff. The most important asset in your store is not your products or merchandise; it’s your staff and employees. Planning for success must involve thinking through your strategies for attracting, training, and retaining competent, knowledgeable, and customer-oriented employees. How do you hire and train the new employee to be the best they can be? When was the last time you hired a professional to teach selling or merchandising techniques? Employees are your biggest investment in helping you achieve your goals of success. Don’t turn it into a liability.

DO IT YOURSELF OR USE A PROFESSIONAL?

The obvious answer is to use a professional store designer who knows retail and retail fixtures along with a strong background in merchandising to help you if you have the financial resources available. It is well worth your investment of time and money to work with a retail store design specialist who can bring together all the interior and exterior elements unique to your store and the products you sell. A design specialist can prepare a comprehensive analysis of your store’s current operation, provide you with specific recommendations in all of the areas mentioned above, including designs to help you increase your sales, increase your profits, and enhance your image. Most professional retail space planners can provide you with a wide range of choices in levels of service based on your budget and objectives. Choose the right source that has had actual retail experience. Architects are needed to assist your designer in providing the necessary documents in order for you to get building permits and to insure the quality and integrity of your building from a safety standpoint. However, most architects have never worked in a retail store and lack the experience and knowledge of why people buy products and how to control the customer once in your store.

You may also choose to implement a number of design strategies yourself. It is very important, however, to be aware of the many components involved in a successful store design. Do those tasks you feel most comfortable and competent to do. But, do not hesitate to contact a professional retail store planner, architect or contractor to help you with those tasks you have neither the time nor the experience to complete successfully yourself. Nothing less than the ultimate success of your store is at stake. Remember, if you don’t do it right the first time, it’s twice as expensive the second time around!

Copyright © 2009 James Rasmus All Rights Reserved.

We’ve all been in situations in which we wish we had a better response. You may have worked with a customer for whom the right words might have clinched the deal. Or maybe a verbal exchange with management would have gone differently had you been better able to communicate your true feelings or persuasively present an idea.

Well, if you’ve ever searched for the right words or phrases to be more effective, search no more. Here they are: The Greatest. Phrases. Ever.

• “Unforeseen problems …”
  
  Problems arise. Whether it is during the purchase of a motorcycle or the repair of one, stuff happens. When breaking this news to a customer, it’s important to do so quickly and to the point.

“Mr. Hartfiel, we’ve had some unforeseen problems with your moped repair. As we looked deeper into the engine, we discovered significantly more damage than we originally thought.”

This phrase very nicely explains that no one is clairvoyant and that this was something that couldn’t possible be known until the engine was disassembled. It also helps prevent the possible rant, “Why didn’t you tell me about this earlier?!”

• “Unreasonable demands …”
  
  When I worked in a dealership, I had a customer whose motorcycle experienced intermittent electrical problems — a real nightmare. You and I both know that sometimes such repairs take time to work out, and this person’s motorcycle was in the repair facility for a few weeks.

During that time, he would come in every other day to clean and check on his motorcycle. He would closely inspect every inch to ensure there were no new dents or dings. On his second trip to the store, he insisted that his ride be kept no closer than three feet to any other machine, he wanted us to clean the bike daily, and he wanted us to repair and deliver it for free because he was such a good customer.

I got exasperated. Every time this guy called or showed up in the store, my blood pressure jumped, and he and I both became agitated with each other. My frustration was a result of not knowing how to combat, or rebut, his demands.

Sensing my struggle, a colleague gave me two words that I use to this day: unreasonable demands.

The next time this customer came in, I simply said:

“Mr. Thomas, we appreciate your business and value you as a customer. However, you are simply making unreasonable demands on our business. If you like, we will fix your motorcycle, it will be clean when you come to pick it up, and it will be free of dents and dings. But we cannot clean it daily, isolate it in a bubble or give you free repairs.”

“I don’t want to be unreasonable; I just want my bike to be OK,” he replied.

So did I, Mr. Thomas. So did I.

• “Help me understand …” When someone raises a heated issue or an idea you don’t totally agree with, here’s a great statement. When a customer says,“This motorcycle is junk!” Screams the customer.
  “Help me understand why you say it’s not working properly?”

   

  The customer will then start telling you more specifically what makes them think there is a problem. Plus when a customer raises a “charged” word like in this instance, “junk” it’s best not to repeat that word. It has a tendency to validate the comment.

  Or

  “I think our parts special order system is stupid.”

  “What makes you say that?” Then and only then can you start making sense of this kind of comment.

• “What this means to you is …”
  
  In this business we like to talk tech with our customers and say things like:

“This motorcycle has inverted front forks, lowering the unsprung weight.”

Or:

“This bike has a 1200 cc engine, creating 78 foot pounds of torque.”

Customers will nod dutifully, and we think we are communicating. But in reality, many customers just don’t want to appear ignorant about the sport. Don’t keep them in the dark. Add “what this means to you” to your conversations, and you will always make a meaningful customer connection.

Try this:

“This motorcycle has inverted front forks, lowering the unsprung weight. What this means to you is that it helps keep the tires on the ground.”

Or:

”This bike has a 1200 cc engine, which creates 78 foot pounds of torque. What this means to you is that the motorcycle has power you can feel.”

• “Feel” – “Felt” – “Found”

The earliest reference to this that I have found is Ron Willingham’s Integrity Selling originally published in 1987. But the technique probably reaches back even farther. I have taught this technique in just about every workshop I’ve delivered since 1990. Here’s how you can use it.

When a customer complains about a high price, you can respond with:

“I know how you feel. At one time, I too felt that the price might be high. But I found out some things that changed my mind, and they might change yours.”

Then elaborate.

Why does “feel” – “felt” – “found” work? First, it puts you on the same side of the fence as the customers. Be honest. Don’t you sometimes look at the products you sell and say to yourself, “Wow, that’s a lot of money!” So, you are only being honest with the customer.

Next, “felt” is past tense, showing customers that you’ve had a change of heart. “Found” then segues into the important reasons that justify the value, which you can then communicate to the customer.

• “What else?”

This is a great question to ask when you need more information. Whether you are working with a customer, holding a year-end review with an employee or working through a brainstorming session, simply ask, “What else?” Then stop and wait for a response.

The person you are working with will say something, giving you more clues about what you need to do next.

• What do you think?
  
  This is the perfect trial close. A trial close asks for the customer’s opinion about the product or service you are discussing. Trial closes prove the difference between a used Yugo salesperson and a professional motorcycle salesperson.It really tests the water before you ask for the close. If you ask “Want to buy it?” too early in the process, you run the risk of offending your customer. But at almost any point during the conversation, you can say “What do you think?” And your customer will tell you.Another great aspect of this question is that there are really only two responses:  “I love it” and “I’m not sure.” Either one of them should lead you to the next step in the sales process.

• “And at the same time …” Using the word “but,” has a tendency to cancel out everything you’ve said prior to it. For example:“You really did a great job with that sale, but you could have sold a service contract, too.” “You are a smart person, but you’re not very organized.”
  
  If someone made one of these statements to you, you’d probably concentrate on the negative.  Instead, use the phrase, “and at the same time ….” It has the effect of keeping intact the earlier comments and then allowing you to give important feedback. For example:“You really did a great job on that sale, and at the same time we need to make sure you don’t forget about selling the service contract.”“You are a smart person, and at the same time you could be even better with some additional organization.” Big difference, isn’t it? Try it, and you’ll be surprised how much it improves your communication results.
• “You would do the same …”

In every society, people are taught the law of reciprocity. You invite me to dinner, so I should invite you to dinner. You remember my birthday, so I should remember yours. You do for me; I want to do for you. It’s universal.And at the same time (nice, huh?), we often fumble this golden opportunity away. Here’s how reciprocity can work to everyone’s advantage: Remember the last time someone thanked you for a favor, only to hear yourself respond with a casual, automatic, “Sure, no problem”?When you did that, you lost a huge opportunity. Instead of simply saying, “No problem,” try creating an exchange like this next time:Coworker: “Thank you so much for helping me out on that project.”You: “No problem! I know if the situation were reversed, you would do the same for me. “You’ve just positioned yourself perfectly to engage in the age-old human exchange of reciprocity.

• “Will you?”

A great way to help people keep their commitments or follow instructions is to use the words “will you” in front of whatever you are asking them to do.

Don’t say this:

“When you get your customer satisfaction survey in the mail, please send it in.”

Try this:

“When you get your customer satisfaction survey in the mail, will you please send it in?”

And then wait for them to respond. Once they have responded in the affirmative, they are much more likely to keep that commitment. Why? Because they have actively, publicly and voluntarily promised to follow through, and most people want to keep commitments they have made publicly.

• “I really like how you …”
  
  Everyone likes to hear compliments — and not insincere, manipulative compliments. Rather, when you are working with someone, find the things that you like about his or her work habits, and share them with that person. Compliments, when heartfelt, are the equivalent of synthetic oil for relationships. They just work better.

• “How do you do it?”

Busyness seems to be an epidemic. I have not spoken to anyone over the last five years who just said they were “kind of taking it easy.”When you are in a conversation and the inevitable topic of a busy lifestyle comes up, throw this question into the conversation: “How do you do it?”The rule in sales is when your customer is talking, you are selling. This is an excellent way to get them talking. Plus, I like to learn new techniques and information all the time. I know what I know; I don’t know what they know.

• “Tell me more.”

This is another great way to get people talking. When someone gives a response to one of your previous questions or mentions a preference for something, simply say, “Tell me more.” Then stop.Soon, customers will be telling you additional information that will give you insight into their needs, wants or purchasing preferences.

• “Can’t” – “Can”

When a customer questions the quality of a product or service you’re offering, try saying this:“I can’t promise you that you’ll never have a problem. But I can promise you that if you do, we will be here to help.” This works because you are being honest. You truly can’t promise that something will never break or malfunction — especially in the motorcycle business. When you openly admit that to a customer, your credibility goes up.What you can do is ease the customer’s mind and promise to be supportive. Then make sure you are. When presented like this, it’s an effective and economical method. Although I can’t promise you it will work every time, I can promise it will work more often than not.

• “Very funny.”
  

“You guys aren’t open Christmas day?”
“Can I have 75 percent off?”
“You know, you should have thrown in that exhaust system.”
“You don’t have a dealership limo?” When you hear those sorts of outrageous questions or comments, simply reply, “Very funny.” And feel free to drag out the “very.” Your customer will not know how to respond.You won’t get anywhere with this customer by trying to explain why you are an actual human being and that working 24 hours a day, through major holidays, and giving away everything in the store is not in your job description.
You know the comments; they’re the ones that make you shudder.“Why aren’t you guys open 24 hours?”

Worst. Phrases. Ever.

Just as there are great words and phrases, there are also less than great words and phrases. Here are a few of the Worst. Phrases. Ever.

• “We are having a little open house …”
  
  It’s not a little open house, a little sales event or a little information. It’s a great open house, a terrific sales event or very important information.When you use the word “little” in your description of anything, it demeans and belittles whatever you are talking about.

• “To be honest with you …”
  

Been lying up ’til now?

• “I can’t …”
  

Well, unless you are working to cure an incurable disease, you can. You just choose not to. Think about it.

• “I’ll try …”
  
  You hear this one all the time.“I’ll try to call you tomorrow.”
  “I’ll try to get that ordered for you today.”
  “I’ll try and find that information for you.”
  
  ”Try” is a word that people use when they really intend not to do something. It’s what’s known as a “wiggle” word. It let’s you wiggle out of the responsibility. When you say “try,” it gives your subconscious permission to not follow through.

• “Others have said the same thing …”

It always amazes me with people approach handling objections or tough questions with this response. When a customer says something like,

“You guys charge way too much!”

“Your customer service is awful!”

“Your selection is pitiful!”

When you respond with, “Others have said the same thing,” you validate this negative position and actually admit your dealership is too apathetic to do anything about it.

• “Actually, you make a good point …”

The use of the word “actually” is one usage with which you need to be careful. Look at these examples:

“Actually, you have a good idea …”
“Actually, you did a good job …”
“Actually, you handled that well …”

It’s as if the person is telling you: “I really think you’re incompetent, and I’m surprised you’ve had this moment of clarity.”

A final thought: The phrases you use can be both gender- and regional-specific. My wife, Amy, tells me one sure way to get out of any sticky situation when working with a woman is to say, “Hey, cute shoes!”

I’m not so sure about that one, but I do know that here in Milwaukee, when you want to change the direction of the conversation, all you have to say is, “Hey, how ’bout those Brewers?” That’s a sure-fire conversation shifter. Try it with your area sports team.

Having something intelligent to say is a huge key to being effective in your dealership. Knowing which phrases to use and which ones to avoid are vital to your success. Memorize these and internalize the ones you feel will work best for you.

Copyright © 2009 Mark Rodgers

Use End-Cap Displays:  End caps is a term used for the end of a fixture called “Gondola” that is mostly used in the grocery stores, hardware stores and automotive accessory stores.  The power sports industry has been slow in adapting to these fixtures in due part to the basic costs and fixture investment.  By not having gondola’s in your store you will put yourself in a position to where you could lose literally thousands of additional sales called, “Impulse Sales”.  Impulse sales can account for up to 65% of your daily and weekly sales depending on how many end-caps you have in your store and what merchandise you place on these end-caps.

End-caps are meant for promotional and introduction to new products for merchandising. Look at your own grocery store or automotive store to see how they treat their end-caps to help you decide on what products fall into the category of impulse merchandise.  End-cap merchandise should be items that customers need, special buys or “lost leaders”.  Why do grocery stores change their end-caps every other day? To make us buy more products on each visit and typically we will purchase 1-3 more items on every visit above what we came in the store originally to buy.  Why do you think they put the eggs, milk and butter to the very back of the store?  To make us walk by more end-caps and more merchandise.  You too, have that same opportunity if you follow these basic rules.

End-cap displays should focus on one or two “like” products or related products.  The display can be anything from quarts of oils or tie-downs displayed on peg hooks like dog leashes in a pet store.  End cap promotions focuses on large quantities of products that you generally receive a special buy on or that you wish to heavily promote with the goal being, to get something in the hands of the consumer as soon as possible.

Placing too many items on an end cap will only confuse the customer because there’s too much to see and read.  There was a store in Santa Fe, New Mexico with a large end-cap display that had over 27 different items and very few related.  The manager said he wanted to let customers know the many different items they carried.  After standing back for about a half-hour we didn’t see one customer stop and look at the end cap.  Point is, there were too many items to read.  Keep your end-caps simple and to the point. (See Photo 1-12)  You can put up a sign to promote the product or not.  It is recommended that you use the end-caps to merchandise products that are on sale and display products that relate to the time of year or season.  Oils, cleaners, tie-downs (with your name and phone number-see photo 1-13) are great items throughout the year.  We suggest that you take your tie-downs out of the plastic bag packaging and hang them on the end-cap like dog leashes.  Be sure to add an addition 15-20% additional mark-up to the original price and sell them by the single item.  Take some time to develop effective end cap displays, promote the products in your advertising plan and rotate the end-caps often.  Well planned end cap displays give your customers additional reasons to buy products they may not have intended to buy in the first place: Impulse Sales!

Merchandising Basic Number (6)

Display Tonnage: Seasonal and Promotional Merchandising.  Tonnage is a retail term that refers to buying large quantities of an item and creating a special merchandising display unit from which to sell the product.  Effective tonnage displays will require that you commit to buying large quantities of an item; motorcycle helmets, oils, covers, tires or any other item you can buy in bulk at a reduced cost.  The product should be elevated on a raised platform, preferably 30”x30”x12” high or use a gondola end cap in high traffic areas. (See photo 1-14/1-15)  Always use a platform to keep the product off the floor to reduce damage to the product and to elevate the product so the customers see that you care about the products you sell.  Remember, nothing belongs on the floor except customer’s feet and tires mounted to units!

Like end cap displays, tonnage displays should focus on a specific product and be rotated frequently.  When buying products for tonnage displays be sure to purchase more than what fits on the display if you use the product as a promotional item.  Always keep sufficient inventory of these special items to ensure you won’t run out of product in the middle of a winning sales event.  Also keep in mind that your sales staff will have to pay particular attention to these display units and keep them well stocked at all times and never leave a tonnage flat empty for safety reasons.  These types of displays help to put the customer in a buying mood and should become an important part of your merchandising plan.

Merchandising Basic Number (7)

Use Professional Signage: Signage refers to all signs that are used to promote your store, advertise your products and display your prices.  Effective signage techniques will help you promote your business, attract new customers, and help you sell more products at a higher price to retain higher mark-ups.  Effective signage will accomplish a number of important objectives:  tell customers what they are buying; inform customers about the benefits of purchasing your products; and communicate to the customers the price of the product.

The basic rules of signage are; Promote your business on the outside-your store name and the main products you sell. (see photo 1-16) Your store name should be the dominant factor on the building or pole sign, monument sign or on the building.  Interior signage should have your store name (see photo 1-17)  in 1-3 or more places throughout the store to reinforce to the customer as to where they are shopping.  All other signage should be professionally done using the proper equipment, NO HANDWRITTEN signs.  All posters must be mounted in sign frames and hung professionally.  All banners must be hung as such to take out the wrinkles.  And the most important part of signage is that all signage, posters and banners have a hanging life from days to the conclusion of the sales event.  The only sign that stays up 365 days inside your store is your store name.  In other words, signs go up, signs get rotated and signs come down.

Why have a poster or a banner that is last years model still up in your store?  That’s old news I’ve read that piece before.  When rotating your products be sure to rotate the sign with the product.  Having an ATV poster or banner hanging over your street bikes is sending the wrong message to your customers.

When it comes to product signage be sure to use sign frames at all times, never use scotch tape thumbtacks or staples.  You are a professional retail store-act like one.  When in doubt, go to your local Sears or Home Depot and check out their signage techniques and follow their lead.  Also, when signing your store don’t over-sign.  All you will do is create “Graphic Pollution”  and then the signage is meaningless.

To control signage have someone in charge and then you only have one person to go to when there’s a problem.  Get this person involved with your advertising department and other department heads to ensure you have a well-balanced signage program.

Last but no least:

Cleanliness: There’s one thing you and your staff should do each and everyday to ensure you have a high quality, professional looking store that says it’s Grand Opening is to clean your store every day.  Make sure your store is cleaned before that customer enters your store. Make sure your store has been thoroughly cleaned, vacuumed, and fluffed, filled with products and inspected by you and your staff for any last minute details that may need attention.  Hit the customer with the “OH WOW” affect each and every day. Your store must look as though it was never touched the day before.  When was the last time you entered a JC Penny or Nordstrom store after a huge sale weekend and saw a messy store?  Never!  You too must take the same attitude as well as your whole staff.  It’s pride of ownership and pride in the staff to successfully maintain the store to its highest level as all times.

Create your Ten Point store review for the outside and for the interior that highlights the Top Ten areas to help you put your best foot forward.  Walk the outside to ensure the parking lot, sidewalks are clean and that there are no hazards.  Are the trees trimmed, grass mowed and weeds pulled? On the inside, clean your interior prior to opening or after closing.  Never vacuum after the store opens, as this is one of the main dislikes by customers when they go shopping.  You should have someone do heavy maintenance before and after store hours, light maintenance during store hours.  If need be, hire a professional cleaning crew, one that is licensed and bonded to come in after your store closes.

(Note:  If you’d like a copy of RDA’s Ten Point Store Review list just email us and we’ll send a copy to you.)

Your employees are responsible for light maintenance, (see photo 1-18) dusting the units to dusty racks and merchandise, throwing out the daily trash.  Having the staff do anything more than that and you will have problems because they weren’t hired to be your maintenance staff.  Some stores have gone as far as having a one or two person team who goes around the store daily and assists in the light maintenance especially the restrooms and dusting products.

Your customers will judge you by the appearance of the store exterior, interior, service department and your restrooms.  Be the cleanest store in your community and you will see more customers, especially the females.

In other words, EVERY DAY IS GRAND OPENING-NOT JUST GRAND OPENING DAY!

© 2009 James Rasmus All Rights Reserved.

“I want you to think of this department as your own business,” Tommy Hannum said opening the door to the service department. A year or two older than me, he was a third generation Harley-Davidson owner, and I was just getting started.

We were greeted by the hum of fluorescent lights and the rattle of an air compressor many years older than the two of us. “So do what you think is best,” Tommy said. (A line I was to hear a lot during my days with Tommy and one I find very useful today) “We’re counting on you.” He slapped me on the back, turned and headed to the front. I don’t think I touched the ground the entire 50 paces to the desk. Needless to say I was revved up.

I loved that service department. I came early, left late and learned everything I could. I even took the flat rate manual home with me so I could read it at night! Riveting, huh? I loved the customers, even the one who told me he’d, “Drive his ‘79 Sportster through the front window of our store, stick his hand down my throat and pull out my heart if we didn’t fix it right.”  I loved the techs, even when they teased me mercilessly for not knowing who or what the Snap-on Man was, or when they put that valve seat ink on the phone that I used so it smeared my face on the next call. Heck I was dumb enough to even like pushing bikes in and out of our service department every day. I saw it as getting paid to work out!

Tommy’s father, the big boss, came in one day and caught me sweeping the floor. He wanted to know why the manager of his service department was sweeping up when we had helpers for that. He was being kind, and I told him I didn’t mind, it was easy to do and no one was yelling at me. (If you’ve ever run a service department you know what I mean). Truth be told, I just couldn’t have my service department looking bad.

Why did I feel such a connection? Because it was my business! Not that I was on the deed to the property, or listed as an officer of the corporation but rather that it was my responsibility to make it work.

This is an idea that I carried with me as I moved throughout the other departments in the dealership and my tenure at corporate. Whatever I was doing I imagined that the workgroup, department or project was my own little business. Ultimately we started our own consulting business and it has been going great.

My hope for you is for you to make your career in this business what you want. Whatever you want to do, have or be it is possible.

And we need you. Because what this business needs is dedicated, committed professionals like you to keep the wheels turning. So running the risk of sounding too much like some incense burning yogi, now go and do good work because “It is your business.”

It’s Your Business

For dealership employees career success starts with thinking of yourself as an ‘intrapreneur.’ Different from an entrepreneur, who starts his or her own business, an ‘intrapreneur’ is a person in an existing business that gets the job done, comes up with creative ideas, and really connects with customers and takes mental ownership of their area and their projects.

The term intrapreneur first appeared around 1982. It means to think of your job, your workgroup, and your department as your own business. As a result, you create new products, services and systems by thinking differently about your dealership.

in•tra•pre•neur

Pronunciation: (in”tru-pru-nûr’, -noor’, -nyoor’), —n.
an employee of a large corporation who is given freedom and financial support to create new products, services, systems, etc., and does not have to follow the corporation’s usual routines or protocols.

Of course you don’t have to be working for a large corporation and you also don’t need to flaunt your company’s rules in order to participate in the idea. It is imperative, however that you start thinking differently.

View from the Top

Sometimes in the workplace we get so focused on our task or our area that we often forget about the whole dealership. We forget that customers experience the entire dealership and not just our one department. And as the saying goes you don’t sink one end of the ship.

It’s important to think of the businesses from your dealer principal’s perspective. When you think of yourself as the president it changes your outlook. You start to see things in terms of costs, image and long term viability of the dealership.

What in it for you?

• Interesting work.

One of the greatest aspects of career longevity is interesting work. Create a new method for prospecting for bike sales. Develop a new process for special orders or come up with a new idea for a promotion. One thing that shows up again and again on employee surveys is that interesting work is more important than money. So, take the initiative and make your work interesting!

• Dramatically improves skill sets.

Becoming a practicing intrapreneur will force you to constantly improve your skill sets. You will be forced to think of your ideas from different vantage points, identify strengths and weaknesses, understand your dealership’s political landscapes and become adept at working through a human organization (which by the way most people don’t do very well).

• Help ensures employability

Look, nothing guarantees your employment. But most successful business owners understand that they are only as good as the people they surround themselves with. You can get anybody to put the UPS order away, but find someone who can do it and come up with a better business process at the same time. Now that person is worth keeping.

Quick Start

Ok enough talk here are some quick tips to start you on your path to intrapreneurship.

• Understand an income statement.

One of the first things you need to understand in business is that there is a big difference between what gets rung in at the cash register and what ends up at the bottom line. Knowing about income measurements like gross sales and net sales, gross margin, and net profit is important. Knowing about income modifications like returns, costs of goods sold and operating expenses are important. You don’t have to be an accountant but when you know for example, what impacts operating expenses you can begin to suggest ways to reduce them.

• Understand the business models of your dealership’s departments.

Motorcycle dealerships are interesting places because they really are many different businesses under one roof. Motorcycle sales, finance and insurance, parts and accessories, clothing and service are the basics. And for some dealerships they have rental programs and rider courses to manage as well.

It’s important to understand that each are unique businesses unto themselves. For example the profit margins in clothing aren’t what they are in accessories. Inventory turns are different. Selling methods vary. When you start to understand this you are starting to see the big picture and may be able to offer suggestions that those who are too close to it may not be able to see.

• Understand your dealership’s business philosophy.

It’s important to understand your dealership management’s business philosophy. Are you trying to be a family store, the custom shop, or the happening place (stores who try to do them all rarely do well at any)?

Knowing what the primary aim of your dealership is can help you tailor your improvements so that they are in sync with what your management is trying to achieve.

• Understand your market.Different dealerships have different market conditions. Is your area one were people have lived for a long time or is it more temporary as a result of military base or a university? What is the tone of the area? Are there gated communities or are there local rec-centers that get a lot of activity? What is the employment situation like and who are the main players?When you understand your market you can really begin to understand what it is that your customers want and need. Then you can create special offerings, services and events ensuring your dealerships success.

• Talk to co-workers in every department.

One of the interesting sociological aspects of dealer life is the “us verses them” mentality which occurs whenever humans interact. You see it first in every day life. Packers fans, don’t like Bears fans, people from the U.S. poke fun at Canada. Canada pokes back. People from Nevada pick on people from California. It’s really is human nature.

And the same thing happens in your dealership. Service gripes about sales, sales gripes about service. And of course everyone knows the real problem is parts. See the pattern continues.

To really work towards becoming an intrapreneur you really have to understand what is happening in those other areas. Talk to a coworker at lunch, over your morning coffee or after hours relaxing. Find out why they have gripes or where their bottlenecks are and perhaps you can do something to change your department to help. Now this is an important detail. You shouldn’t try and change them, rather change you, to help.

• Talk to customers.

Customers are where the rubber really meets the road. As you work with customers, when the time is right, take a moment to ask them what do that like about doing business at your store. Are there things your dealership could improve? Then keep a running tally and ask similar questions of each. Then at the end of a few weeks you could sit down with management and show your results. If you say, “a lot of customers didn’t like our open house.” You might be referring to one guy, who was having a bad day who complained about having to wait in line.

When you can say, “Fourteen customers last week mentioned they really like our new weekday evening hours.” This is meaningful feedback. It’s quantifiable and specific.

• Start with YouRight now list seven things about your performance or your workgroup that you can improve. Grab a pen and pad and start writing. Don’t overanalyze just start letting your mind go. As the saying goes, “Don’t try to think something up, write something down!” Here’s some to get you started:
  • Get to work 15 minutes early so you’re not rushed.
  • Plan your day the night before so you’re more organized.
  • Improve your phone skills, so you are more effective.
  • Learn more about your products.
  • Identify areas in your workgroup’s process to improve.
  • Come up with 3 ways your department can save money.
  • Create 5 ways to increase customer satisfaction.
  • Develop a prospecting system.
  • Develop a follow up system.
• Prioritize.

Now review your list and prioritize them. Start small and set yourself up for success. Instead of developing a new customer relationship management system, try coming to work 15 minutes early everyday for a week. This gives you quick wins and sets you up for patterns of success. Don’t try and revamp everything all at once. Take on one task at a time. That way you won’t be so overwhelmed.

• Take Action.

After you’ve created your list, the most important thing is to take action. And you don’t have to pick the biggest or the most impactful improvement to start with. It has been said that a good plan, executed is better than the best plan that isn’t. Do something!

Challenges

The path to becoming an intrapreneur is not easy. First it means being willing to do something extra. It also requires humility, not acting like some over confident jerk and being willing to fail. And unfortunately human nature will make it even harder.

There will be some people who won’t want to try and make your dealership better. They like things the way they are, they don’t want to do any thing else or different. It’s the old proverb, “The nail that sticks up, gets hit down.” Don’t let that stop you because the personal and professional returns of being an intrapreneur are excellent. Improved skills, more interesting work and better employability are really just the beginning. Plus you really have to implement these ideas. You don’t have a choice because after all it’s your business.

© 2009 Mark Rodgers All Rights Reserved.