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View Full Version : Dealership Expectations: Punkin's response to others..



Punkin
Fri Mar 18th, 2005, 05:26 PM
If you haven’t done it yet, please read my response to R1CH in the previous thread…then feel free to comment:

Troy:
>Notice how I haven't mentioned price? And for a specific reason...if I want the best >price in town...I go to the internet, surf, and order it. But that hoses down hard >working local businessmen who are trying to make an honest buck running their >shops.

Troy, I agree strongly with your philosophy here, and I’ll take it a step further:
If you want the cheapest place to buy a <insert item here>, we’re probably (in most cases) not going to be it. However, I find it strange to hear people on this board attempting to equate price and service on the same level. Fay probably will negotiate a cheaper deal than I will. However, 1.) I doubt you’ll ever see Lisa Schomp helping a customer loading a bike onto a trailer 2.) The sales guy you worked with last week now works somewhere else. In other words, all you are purchasing at a discounter is what you receive THAT DAY in THAT MOMENT of the purchase. The true value in a dealership relationship is what happens 1 day, week, month, year, etc. AFTER the sale. My parts manager Jayson, has been with Twin Peaks for 12 years. Tito, a salesman has been here for at least 3 years. Chad, my Sales manager worked here for a number of years and is now back. We’ve got techs who have been here 4+ years, I am bringing in (Tues 22nd) a Service Consultant from Stan’s who’s been with us 6 years, and our newest bilingual salesman has worked directly with Stan’s (through CARQUEST) for over 3 years.

I assure you, there’s value in those numbers, and in the consistency that they create.

>Put your money where your mouth is folks, until people are willing to cut and run >from bad dealerships on general principles, those bad dealerships ain't gonna >change anytime soon.

Well said, and amen. (And that includes US! If it’s not right, we need to know!)

>R1ch:
>On the price subject, it is debateable. If everyone gets the "everyday low price" >then everyone could be getting the shaft and if you go to another place they may >have just as good of service but you can negotiate your price. If I have a choice, I >would prefer to negotiate a price, it means I could get a better deal. No negotiation >Is a negitive for me and I think to most people. Most salespeople want the >flexability to negotiate, that way they can close the deal just by beating the price of >a "everyday low no haggle price"

The auto industry has done us no favors in this department. Most folks, myself included, are trained to believe the MSRP is some magical number that is only designed to induce haggling. However, the motorcycle industry is not blessed with things like $5000 customer loyalty discounts, $7500 customer cash, and 0% financing for 60 months. The fact of the matter is, there’s decent margins in SOME bikes, not in most. In reality, there’s not much room to haggle on a dirt bike, atv, or watercraft.

That said, huge discounters, some of which exist in Denver still do well. Here’s an important distinction about our dealership—I don’t WANT to do the volume required to stay in business while discounting pricing. If I’m moving 2500 units a year, I can assure you I don’t know my customer’s names, their kid’s names, their pets names, what they ride, what they like/don’t like, what kind of tires to stock, etc. I refuse to be the Wal-Mart of dealerships. Our sole goal is to build relationships, be a solid, consistent small to midsize dealer, and provide superior service to each and every person that walks in the door. We can’t do that and keep the doors open by discounting.

>Troy:
>My favorite here in Colorado has been the crating,shipping,documentation fee's >which I charaterize as "bendover" fee's....never even heard of these silly things >before until I came to Denver....then these weasel dealers tried to spend hours >telling me how these fee's are charged by everybody...problem being, I'd already >been purchasing new motorcycles for 15 years and never had seen them before...

Documentation fees: I’m legally and financially responsible for every piece of paper that you touch (and some you don’t) during the purchase process. I have a professional, college educated individual who handles all of these items, ensures your security against identity theft, and ensures all of the paperwork is processed properly and quickly (30 days by state law) to deliver a clean, transferable title to you. This fee pays for this professional to get your unit delivered to you as quickly as possible.

Freight: Every dealer pays freight on every unit they purchase and have delivered from the OEMs. (There are sometimes free freight programs). However, the freight costs that many overlook is when the unit you want is in Montana, and I have to either send someone, or pay a truck to bring it. Or, the 2 or 3 times a week my lot guy is running from Cheyenne to Pueblo to ensure we have the inventory in stock and available for purchase that you want to see. Again, it’s necessary to take a real look at the costs associated here! It’s not difficult at all between payroll, fuel, insurance, trailer cost and maintenance, vehicle cost and maintenance to show an additional $150 ON TOP of what we paid the OEM when we have to go get a unit.

Setup: We are reimbursed various amounts from the ridiculous ($25) to really well ($150) from different OEMs for building various units. I **do not** use high school kids to build new units. I use factory trained technicians, who build the unit, perform thorough inspections, and road test the new unit. ***100%*** of factory reimbursement that I receive goes directly to the technician who assembled and tested the unit. Any setup fee that we collect is based on the difference between our reimbursement, and the value of my technician’s time, both now, or in the future when a customer “drops in” or just needs something “real quick”, or really any of the “non-quantifiable” service costs associated with that unit. Setup also includes the fuel for warming up and rolling units in and out every day (you’d be surprised how this adds up), and a full tank of fuel in your unit at time of delivery.

***My recommendation?*** Ask what you’re paying for! My guys are still learning how to articulate some of these fees, because as you’ve mentioned, they’ve also been told, “that’s what we do”. As a customer that was an unacceptable answer for me, so I expect our customers to hear the real deal!

>MRA828:
>I'm still interested in what someone who owns/manages/does marketing for a >dealership would define as their specific value proposition and what differentiates >them from the dealer 20 miles down the street...

31 year track record for honesty, integrity, and customer service, proven track record of customer loyaltyà in the automotive industry, which has been portrayed since the 1950’s as an industry of thieves and scoundrels!

Plus—family owned and operated, long time employees, willingness to listen to customer concerns--the buck stops with me, I’ve got no one to pass it to! Strong desire to prove to this industry that IT CAN BE DONE BETTER. Realistic realization that we won’t accomplish this overnight!

>Ralph:
>Well, not to mention fees like that are reimbursed by the manufacturer to the >dealer. They try to charge people that bogus crap because suckers will pay. It'd be >nice to see a dealership just say "this is the price, we don't charge BS, may not be >the absolute bottom dollar but we'll treat you fair and earn your repeat business >through excellent service after the fact". Sounds too simple, doesn't it? That and >remembering your customers months or years after you sell them something - BIG >plus points for that one...

My goal is that the second time you come into our store, providing we had “name” contact the first time, you are greeted by name. If not by name, then at least, “Hey, how’s that R1 doing for you?” and show you that I at least remember you, what you purchased, and I don’t stare at you blankly and say, “hey”.

>Kevplus2
>and another question about stocking parts/accessories...how come nobody stocks >anything anymore? i know it is impossible to carry everything, but it seems like no >matter what shop you go into (twin peaks is guilty of this too), there is nothing in >stock. no matter what you need short of oil or grips, they have to order it and you >wait for 2-3 days (or more).

Ouch! The truth hurts, but the truth shall set us free! Hehehe. You are right on. I will say that many dealerships in the area currently have better stock coverage than we do, but we’re working on it. One thing you can do to really help is to point it out! I promise I’m listening. As recently as this week I have instructed our parts guys to close every interaction with something along the lines of, “What did you come in for today that you DIDN’T find?” or “What SHOULD we have that we don’t’?” We also had a mini-forum with some CSC members, and we are still working toward getting our street inventory improved.


I appreciate and invite open comments and questions, or PM’s. Please, if you had a horrible experience 2 years ago, don’t beat on me—I had nothing to do with it. Many of the employees here are long time GREAT people, who simply need some support and direction from ownership. My family and I intend to build a showcase of a dealership out of this store, and your feedback only helps.