Archive for the 'marketing' tag

This is the first in what may be an ongoing series of posts (depending on time availability and levels of motivation) about things that are broken or should be improved in the powersports industry. If you have any ideas about something that really needs to be fixed or could be done better, let me know.

This post is going to cover the issue of local search results for powersports products and ask the question:

“Why is our industry not doing more to help the local retailers when it comes to online product/shopping searches?”

A week or so ago I was at the Search Engine Strategies conference in San Francisco and after attending a few sessions on local search and the use of things like QR codes and Near Field Communication, I decided to write this and see if I could shake things up a little bit in our industry.

First, consider this staggering statistic… According to a study done by BIA/Kelsey nearly all consumers (97%) now use online media to shop locally. That’s an amazing stat and seems to be right on for our industry, where most enthusiasts hit Google for research about powersports products and see those shopping results sitting right there with all the rest of the little blue links. The “problem” is that all those shopping results lead to the mega e-commerce players and not the mom-’n-pop, brick and mortar dealers and retailers that make up the backbone of our industry.

Next, consider what is assumed to be an absolute truism in our industry:

“The entire powersports industry, up and down the supply chain, has a vested interest in, and actively attempts to support, the local dealership or powersports retailer.”

In my years in this industry I’ve heard things to this effect echoed over and over… This OEM, or that OEM, or this distributor or that distributor, will swear up and down that they are 100% behind supporting, nurturing, even protecting the mom-n-pop, local dealer.

I’ve got a great idea about a way that they can demonstrate this and put their money where their mouth is. Help the local retailers sell more product to people shopping online by leveraging the technical infrastructure that already exists! Now’s the time for the folks at the top of the food chain to support the retailers at the bottom that provide the very framework that makes our entire industry possible.

Here’s my idea by way of an example:

Tags:E-Commerce, ecommerce, internet, marketing, Powersports Industry, selling-online, supply-chain

What is DustyMoto? A particularly harsh desert race in Arizona? A porn star from the 70’s with a predilection for motorcycle apparel? Actually, DustyMoto is one of the most innovative companies that I’ve come across in our industry and one that you should absolutely be signed up for and using.

DustyMoto is a web-based service that creates a virtual warehouse in “the cloud” that is composed of all the inventory with nine months of no sales held at its participating dealers. When a dealer has demand for a part they don’t have, rather than order it from the OEM, they order it through DustyMoto, and the part is shipped from one of the dealers in the network that has it as excess or obsolete inventory.

Let me rewind and explain what all that means.  First, a virtual warehouse in the “cloud” means that all of the product that DustyMoto shows as available in their system is not sitting in a big physical warehouse somewhere (if it was, it would be pretty big as DustyMoto’s CEO Bobby Franklin told me that they currently have around $45 million in inventory). All of the inventory is being held at participating dealers around the country. “The Cloud” is the term that has been developed in the internet application space to refer to data storage and processing capability that is not housed on any one machine. It’s physically spread all over the place but the application or database appears as one unified entity (Google’s App Engine or Amazon’s S3 for example).

The inventory in the system is typically all stuff that is at least 9months old. According to DustyMoto, studies show that if a part is on your shelf with no sales activity for 9 months, odds are really, really good that it’s going to be there for a birthday or two before you finally pitch it or it ends up on eBay for pennies on the dollar. DustyMoto makes it’s money off a small commission/fee to the seller, currently 15%. Considering that most shops eventually blow out old inventory at levels much steeper than 15%, and typically after incurring carrying costs that add up to way more than that over a year or two, 15% seems reasonable.

Another nice aspect for the seller is that all parts are sold at current dealer cost (the same cost in your price files). That means that it’s possible that you may have paid $100 for a part a year ago, but the part now sells from the OEM for $125, so DustyMoto transacts it for $125. You just made (or recouped carrying costs) $25 on that part.

This is the type of brilliant idea that I’ve called for in several columns over the years. Although in my naivete I thought that it would have been driven by the distributors or OEM’s. Bobby from DustyMoto sent my thinking straight on that one. He explained that the OEM’s and Disti’s have zero interest in making the supply chain or inventory management efficient across the industry. In fact, it’s in their best interest to stuff inventory into the channel with the ferocity of a farmer cramming feed into a goose for foi gras.

When I pointed out that inventory carrying costs were one of the largest contributors to dealers having financial hard-times, and wouldn’t it be in the OEM’s interest to do what they can to make their dealers more healthy. I could sense Bobby rolling his eyes over the phone as he explained to me that if that dealer dies off, it’s an opportunity for the OEM to shove inventory into another empty parts department in the dealership that steps in to take the dead one’s place. My, what a healthy industry we have…

With those market dynamics in place, it’s imperative that dealers and retailers in our industry use all the tools available to make ourselves as self-sufficient and profitable as possible. Think of DustyMoto as a Co-Op that allows all of the dealers in the country to work together to make the entire industry more efficient, effective, and healthy.

Think about it… How much old inventory do you have on your shelves that you just know someone, somewhere, is ordering brand new from the OEM…? How many times do you order a part for an older bike that you just know has been sitting on some poor sucker’s shelf two states over for the last three years? DustyMoto is in place to solve these very real problems

I’d like to see DustyMoto’s capability built into every major DMS system out there. When you add a part to an invoice that is not in stock at your shop, it should query DustyMoto’s servers first, before that special order goes to the OEM or distributor. It should be seemless. If DustyMoto has not already begun working on an integration with folks like Ziios (see Arlo’s recent article on Ziios openness to integration and extension) they are missing the boat. If DustyMoto and Ziios offer that capability, then ADP better get on board as well.

I honestly believe that if DustyMoto plays it’s cards right, they have the ability to radically transform a major aspect of our business thus making everyone at the retail level a lot better off. And like all networks, the more nodes, or participants, the better it will all work.

I think one of the biggest risks to their success is if one of the major DMS players steps in and sets up a competing network (which is not just bad for DustyMoto, but bad for the idea as a whole because now you have inventory split into multiple exclusive networks).

I also think that DustyMoto needs to implement a type of credit system that rewards buying from the network. Sure, everyone wants to unload their old stuff, but I think there needs to be an incentive system that can help re-train the behaviors of parts managers to not just order from the OEM or distributor first without checking DustyMoto’s system (again, integration into the DMS will help alleviate this). Maybe a system that the more you buy from the network, the lower commission rate you have to pay when you need to unload your own old stuff?

After a year that had me writing a few columns and blog posts that made me sad or mad about things going on in this industry, I’m happy to be able to finish up my year with a column that is as hopeful for what may be ahead for our industry as this one.

Now go sign up!

Tags:Column, dealerships, E-Commerce, ecommerce, marketing, Merchandising, supply-chain

…And he just checked in to your shop on Facebook Places. Or on Gowalla… Or FourSquare… Or Loopt… Or Yelp… Or any number of “location based social networking” clones that are popping up all over the interwebs.

What are these sites/services? How do they work? Who uses them? Why should you care? This month I’m going to make an attempt to give you a primer on the subject that makes at least a rough pass on those questions.

Basically, the core of the idea is that now that people have gotten used to the idea of social networking by using sites like Facebook and LinkedIn, and a lot of those people are using “smart phones” that have fast(ish) connection to the internet and have some method of determining where you are physically located (GPS, cell-tower triangulation, etc.) it was natural that someone would come along and make the big connection: Combine the social networking experience with location-aware features while providing opportunity for the business location to participate. Except for the creepy stalker / exhibitionist aspect of the whole thing, it’s pretty brilliant…

Here’s how most of these types of services work. You sign up for an account with a site like FourSquare (www.foursquare.com). When you go someplace (a restaurant, a concert, a club) you use the application on your iPhone (or whatever device you have that is supported) to “check in.” You’re basically broadcasting to your social network (or at least the part of your social network that is using the same service you are) a message that says “Hey I’m HERE!” (and when I think about it cynically, you’re also saying to any potential robbers, “My apartment is empty, go for it!”). From there, depending on the service/site, a lot of other things can happen. If you have “friends” that are on the same location-aware social network, and they have also checked in, you can basically hook up, you can earn loyalty points (which I’ll go into later) from the business, etc.

So far, the big dog in this space has been FourSquare. They were the first big player that developed a large user base, got a lot of press, and captured the hearts of the VC’s. However, now that the concept is starting to prove itself, the really big dogs in the main-stream social networking space like Facebook (with Facebook Places) are starting to roll “check-in” functionality into their service offerings. It seems to me that now that Facebook is playing in this pool, where most people already have their social graph, sites like FourSquare are going to have a lot less room to move around. That is assuming that Facebook doesn’t eventually blow itself up due to privacy concerns.

Most of these location-based social sites like FourSquare have methods to provide incentives to people that check into a location a lot. The idea works like this: Business A has an account with the location-based social service and “claims” their business. Business A provides incentives (special services, discounts, free stuff, etc.) to people that meet certain levels of participation. For example, with FourSquare a user can earn points the more they check into the same location. Earning more points leads to various “badges” that tell the world “I’m a regular.” With FourSquare folks aspire to be a location’s “mayor.” Typically a business owner will provide more perks the higher up the ladder a user goes.

By themselves these location-based social services can be thought of like a game. But where they should be interesting to you is as a means to advertise your business, participate in the various ecosystems that will develop around these growing social networks, reward loyal customers, and so on.

Sites like FourSquare, Gowalla (gowalla.com), etc. are hot right now as companies look for more effective ways to use social networking tools and sites to market their businesses and make money. At the most recent Search Engine Strategies conference I just attended in San Francisco, it was very clear that businesses are becoming more and more disenchanted with the typical paid search advertising (if you purchase Google Ad Words, you know that our industry has managed to jack up relevant keyword prices to levels that are just goofy…). Display ads and other content network ads are proving to be very costly and difficult to measure except for companies that can afford complicated advertising attribution tools and services. Advertising on social sites like Facebook is reportedly not very effective for a lot of companies. Companies see the advertising and marketing opportunities that these new social networking sites offer because they mostly hinge around actually having live customers physically in their store. These sites/services may finally be the holy grail union between local, web, and social people have been waiting for. Or they may be just another flash in the pan web sensation that caters to narcissistic exhibitionists… Who knows? Some folks thought TV was a fad.

You should already be able to envision ways that you can leverage the functionality these sites provide for your dealership. Especially if your shop has, or could be made to have, a reason for people to hang out. You could also partner with establishments in your area that are hot hang-outs for riders. Here’s something to get the ball rolling around in your head: If you live close to a track, partner with the operators by offering free oil changes or something like that to the trackday-rat “mayor” of that facility. It’s a safe bet that a lot of tracks, especially ones that sit empty quite often, don’t have owners or operators that are even bothering to “claim” their business in sites like FourSquare, Yelp, etc.. Offer to step in and do it for them! I’m sure once you start using these things, more brilliant ideas will come to you.

In closing, I recommend that you keep a close eye on this area of the social web. It’s attracting a lot of attention, companies playing in this space are raising a lot of money from VC’s, and it’s already starting to develop some technical extensions and meta-level technologies that hope to provide additional value to the participants. An example of this is TopGuest (www.topguest.com) that links “check in’s” with a user’s loyalty programs (frequent flyer program for example) allowing them to earn points.

Tags:Column, dealerships, E-Commerce, ecommerce, marketing, powersports, Powersports Industry, selling-online, social marketing, social media, social-networking, web2.0

We need to talk. All of us. Everyone in this industry needs to be talking to each other a lot more than we currently do. Sure there’s the occasional show where we all get together like DealerExpo and there’s the inevitable gripe-session that is sure to break out whenever a few dealer principals get together at an OEM show or 20 group meeting. What I’m talking about here is more of an ongoing, broad-based, industry wide series of conversations about the important issues that affect us every day.

Once again, the internet can step in to help. If there’s one thing that the internet is great at it’s providing a common, albeit virtual, meeting space where like minds can get together and discuss whatever hot issues are top of mind.

I’m sure a lot of you are part of a 20 group and recognize that quite often these gatherings are great places to share and discover new ideas that have potential to improve your business or even help grow our industry as a whole. Some of you may even have an email list where you keep those discussions going. I’d like to propose that as an industry we expand that idea and start taking advantage of some of the discussion forums that already exist.

I’m going to focus on two specific places where I recommend we all start gathering and having some lively discussions.

The first is LinkedIn. If you’re not on LinkedIn already, you really need to be. Linkedin is pretty much the best professional social networking site out there right now. In addition to it’s potential to build a network, LinkedIn has a feature called Groups. Groups are like mini-forums built right into the LinkedIn framework. A big part of these groups are the discussions and that’s what I’m really focusing on here.

There are already some great groups on LinkedIn aimed at our industry. In fact, it was the discussion from a few months ago about vendors competing with their own customers (prompted by Arlo’s blog posts at DealerNews) that really motivated me to write last month’s column. But what’s really lacking is a lot more members and a lot more active discussions of issues that really affect everyone: MAP policies, national and state legislation, general business issues, and just general brainstorming.

Here are a few of my suggestions about groups to join. These were picked because they focus on our industry and as of this writing they have the more members than some of the other groups. I don’t have any stake beyond wanting to push toward a critical mass of users to make the groups more useful.

The first is Motorcycle Industry Professionals. This group is a pretty high-level group that covers more than just dealers. It already has over 1,000 members and it has hosted a few pretty good discussions.

Next up is the Motorcycle OEM Network. This is a good group to be in if the goal is to engage in some constructive conversations between the OEM’s and their dealers.

Wrapping up LinkedIn we have the most obvious, the Motorcycle Dealers Group. Unfortunately this group only has about 100 members currently and for the sake of this month’s column, it’s the one I want to see really bloom.

Finally, we have Dealernews’ own Shop Talk. You really should be a member of this social network because you’ll also be kept informed of blog posts from the Dealernews staff as well as other important information from Dealernews.

So now that you’ve signed up, start participating! Ask questions… What impact are e-bikes going to have on our industry? What kinds of features should the ultimate DMS system have? What kinds of parking lot events are folks running that break the mold of the tired-out “open house”? If you see a question or discussion that you can provide valuable insight, jump in!

So now we’re left with the big questions of “why?” Why do I want to poke, prod, and encourage all of you to participate in these discussion forums? The answer is because I want to make sure that our industry sticks around as long as possible. I want the fundamental structure of small and medium sized dealerships to be able to compete with the growing threat of mega-online shopping sites, direct to consumer sales from PG&A manufactures and vehicle OEM’s. I’m positive that if we can start raising and answering more and more questions and addressing more and more issues that are pressing on our businesses as a collective business unit, the stronger we can be.

In the absence of a strong, nationwide, dealership-focused trade organization that has a vibrant and active membership, maybe we can build it ourselves using the amazing potential of existing social networking sites like LinkedIn and Dealernews’ ShopTalk. Fingers crossed!

Tags:Column, dealerships, marketing, recommendations, social marketing, social media, social-networking, web2.0

I’ve created this post for the purpose of insuring that as long as OEM’s and other sources of supply in the motorcycle and powersports industry continue to create and enforce M.A.P. (minimum advertised price) policies (thus creating what are essentially price fixing scenarios) that all violators are treated the same.

It’s the “action” arm of my lengthy post on my take on MAP in general that you can read here.

The goal here is to make sure large retailers and small retailers are all being held to the same standard when it comes to MAP.

So, when you see a violation of MAP anywhere (email, print, website, eBay, Amazon, Google products feeds, etc.) in addition to following the policy of the OEM and reporting the violation to them, report it here as well so everyone can see it. Simply use the comments at the bottom of the page. You don’t need to use your real name to leave a post. I’ll be moderating the comments to eliminate spam, but that’s it. I take ZERO responsibility as to the accuracy of the MAP violation claim. I have no idea if the items actually violate any given OEM’s MAP policy. That’s for the OEM to decide.

The OEM’s with MAP are more than welcome to post their responses to MAP violation claims here as well. As are the offending retailers.

When the offending retailer has made the change to their site, etc. please update the comment section. Likewise, if after reporting the violation to the OEM/Disti you don’t see the retailer being forced to toe the MAP line make that clear as well.

Hopefully by having this fully open and transparent discussion of MAP and all of its tangential issues we can work to create a more fair, competitive, and vibrant powersports market.

Holding my breath…. NOW!

Tags:E-Commerce, ecommerce, internet, MAP, marketing, minimum-advertised-price, motorcycle, Motorcycle Advertising, powersports, selling-online

The idea for this month’s column came to me last year when I was out doing some Christmas shopping. I didn’t have a specific item in mind, but I did have a general idea. Now this is a store that I don’t normally do a lot of shopping in so I’m sure when I walked through the door I had a little of that “deer in the headlights” look. Fortunately this store was staffed with knowledgeable and helpful staff and I think even more importantly, the products were organized and presented in a manner that made it, if not enjoyable, at least pleasant to shop in.

One thing that’s pretty obvious from looking through those stacks of catalogs on your parts counter is that we are in an industry with an insane number of products that our customers can choose from. While a small percentage of the hard-core enthusiasts know exactly what they want (you know the type.. The ones that have the distributor catalog memorized and come in with reams of printouts from the forums) most people need some help figuring out what they need or even more importantly what they don’t know they need.

Unlike in your physical store where you can have one of your knowledgeable and helpful staff aid a lost customer, on your website for the most part, the customer is on their own (unless of course you’ve got some type of online chat and co-browsing or co-shopping application on your site).

When it comes to e-commerce, the only tool you really have to help the customer is the merchandising on your website. For the purpose of this column I’m going to define merchandising to encompass three things:

1. Organization of the products (product or feature groups, category and taxonomy development, etc.)
2. Selection of products (what product go into those groupings or receive some other type of “feature” status)
3. Presentation of the products

The first two elements go hand in hand. You can create a “category” on your site and call it something like “Maintenance Essentials” with products that pretty much anyone that rides any type of powersports vehicle is going to find useful or necessary. One of those items may be chain lube. Let’s say you’ve got access to like 10 different brands each with 3 variations and 3 different sizes. That’s 90 different combinations! For one simple product!

Imagine this type of scenario that I think makes up 80% of the shopping situations out there: A guy rides his motorcycle as an alternate commute vehicle and an occasionally for recreation. He likes his motorcycle, but he’s got a life. He doesn’t spend every waking moment on forums to determine what the ultimate chain lube is. He doesn’t ride with a big group of people that will sit around debating the relative benefits of various type of chain lube. All he knows is that his chain looks dirty and needs cleaning and lubing.

He goes to your site, or any typical site, and types in chain lube and is presented with almost 100 choices! For a simple product like chain lube! You need to make sure that on your site that you’ve picked the “best” one or two options for these major product types and present them in a way that makes it 1) easy to find and 2) communicate that based on your expert opinion that these are the ones to go with. Basically the exact same thing that a good parts person would do in a face-to-face situation. The difference is that online you need to do all of this before the customer ever comes onto your site.

There are a few different ways that you can do this. The first is the idea of creating multiple personas of model customers and so scenario planning on how they may interact with your site. Create like 3 to 5 customer types (the hard-core enthusiast, the casual rider, the spouse or parent of a rider, the total noob, etc.) and then imagine a few different scenarios for each type (a major part broke and they need to find a replacement right now, they are new to riding and need everything but don’t know anything, they need to buy a birthday gift for their wife, son, friend that rides, and so on). Pretend to be these various types in various situations and try to organize your site so that there are obvious categories and product assortments that make each customer’s shopping experience as fulfilling as possible.

If your site has been live for a few years and you’ve been using a good analytics package, you can use its data to see how people use your site and utilize real-world data in your scenario planning. Where they go, what they buy, what they look at and don’t buy, etc. etc.

Obviously this is all a lot of work. It’s so much easier to just buy a site from a 3rd party vendor with all the catalogs pre-loaded, or build your own and dump a product feed into it, have a few general categories like helmets, exhausts, etc., and be done with it. That’s what 99% of the sites out there do, and that’s why 99% of the sites out there suck and don’t sell anything! Not only does merchandising make it easier to shop, it’s just about the strongest tool you have to differentiate your site from all the other sites out there!

That doesn’t mean that you should do away with the potentially millions of other products in your online catalogs. More often than not, you’ll want to present that potentially overwhelming selection on a second layer behind the your primary merchandising and allow customers to drill down to explore. Always have a “See all of our chain lube products” link next to your hand-picked selection. Of course a robust and powerful search tool is your best bet to handle these kinds of shoppers.

So now that we’ve dealt with the product selection and organization ideas, let’s move onto the final piece, the presentation of those products.

There are so many cool technologies these days that can help you communicate the features, advantages, and benefits of the products that you sell. You’ve of course got the good ol’ custom written and compelling product description. You’ve got the ability to take your own product photos that show things like the product in use, various angles or views, mounting options and so on. You’ve got videos that you can post on YouTube and embed in the product page. You can post sound files of exhaust systems. The limit is really only your imagination and the amount of time you want to devote to it.

At the very top you can even go big time and use rich-media technology like Adobe’s Scene7 (www.scene7.com) that can provide a huge range of presentation and interaction opportunities.

Try to remember that you are the expert in what you sell. Use that expertise to help customers figure out what they should be buying and communicate it through professional merchandising on your site.

Tags:Column, ecommerce, marketing, powersports, Powersports Industry, selling-online

Welcome to 2010! I want to kick off this year with a column about selling online, but selling someplace else other than your own website. This is something that you can engage in even if you’re not directly engaged in full-blown e-commerce on your dealership’s primary website.

What I’m talking about is taking advantage of things like e-commerce applications on social networking sites like Facebook and other “widgets” that you can embed in blogs or forums.

The first example I’ll point out is a company called Payvment [http://www.payvment.com/] that has a nifty little storefront application for Facebook.

In order for this to work you’ll need to have a Facebook fan page set up for your dealership. You simply install the application on your page, set up the look at feel of the storefront using the tools that Payvement gives you, enter in some information about your shop, and then start loading products. (Obviously there’s more detailed steps involved and Payvment’s site provides all the details).

I’d recommend experimenting at first and a load a small selection (around 10) of products that are impulse buy, gift, general interest type of products. You’ll want to keep in mind that Facebook is not really a shopping destination, and typically you’ll want to focus on the interaction and social networking aspect of Facebook and keep the sales pitches to a minimum. But since it is a fan page, I see it as a great way to sell things like t-shirts, hats, and other items branded with your shop’s logo, or the brands that you carry.

Considering that Payvement is totally free to use right now, there’s really no reason to not give it a try and see if there’s a sensible way for you to fit it into the overall online activities.

One dealership that has begun experimenting with Payvment is Ducati Seattle [http://tinyurl.com/ykppl42]. What’s interesting about the fact that they have this e-commerce application running on Facebook is that they don’t even have any e-commerce on their primary dealership website!

Ducati Seattle’s Cindy Wallace is in charge of the Facebook storefront as well as their eBay store where they focus on selling crash damage take-offs, excess & obsolete, etc. Cindy told me that based on a combination of factors (strong local community support & involvement in the shop, etc.) Ducati Seattle has made the decision to not have a full-blown e-commerce operation. “People prefer to come into the shop to buy things where they can actually see them and to see other people there as well.”

But that doesn’t mean that they are not active online in other ways. Based on leadership by Ducati Seattle’s owner David Roosevelt they have made a decision to be very involved in social media like Facebook. Considering that they have over 1,200 fans on their Facebook page it makes sense that they are giving the Payvement application a test ride.

Another Facebook application for selling products from within your Facebook page is Nimbit MyStore for Facebook [http://tinyurl.com/yzvdzxh]. Nimbit seems to be going more for the rock band trying to sell merchandise angle (so they offer features like the ability to sell tickets or downloadable music), but I don’t see why you couldn’t use it to sell merchandise for your shop. Nimbit has several offerings that range from free to about twenty bucks a month.

Moving away from Facebook, I want to point out that there’s a growing number of widgets that allow you to place shopping experiences on more content-centered (as opposed to shopping-centered) websites and pages. A widget is a small bit of code that you embed in a webpage that provides a little area or box where something shows up that gives people information (weather, race results, etc.) or in our case a product display with the ability to buy it right there.

These widgets allow what I call contextual commerce. Where you can offer products that go along with the content the visitor is reading about. Writing a post in your blog about how to bleed the brakes? Why not have a widget in the side bar selling brake fluid, brake bleeders, pads, etc?

There’s quite a few people playing in this widget area out there. Here’s a few leads to get you started: BlinkCart [http://www.blinkcart.com/], Shopit [http://www.shopit.com/], CartFly [http://www.cartfly.com/], and Amazon [https://widgets.amazon.com/] even has widgets that let you sell products they offer (or that you have loaded as an Amazon merchant) on your site.

Check out Widgetbox (a clearinghouse of all things widget) as well and check out the ecommerce tag http://www.widgetbox.com/tag/ecommerce. Finally, of course, you can always Google “e-commerce widgets” to track down more of the latest and greatest as developers keep the wheels of progress humming along.

Having a storefront on Facebook or an e-commmerce widget on your blog is most likely not going to be a silver bullet in terms of generating a huge amount of extra revenue. A lot of this has to do with the fact that most people out there are not in the shopping mood when they are on a social site like Facebook. However, having a good selection of impulse purchase products and gifty items makes a lot of sense. It gives you a chance to have a few more hooks in the water in terms of selling things and it keeps you abreast of what’s going on in the world of e-commerce technology and off-site merchandising.

If you give this a try, please let me know how it works for you!

Tags:Column, contextual commerce, dealerships, E-Commerce, ecommerce, internet, marketing, Merchandising, motorcycle, powersports, Powersports Industry, selling-online, social marketing, social media, social-networking

I’m writing this post to insure that there’s complete transparency regarding my involvement with 50 Below. I’m pretty sure that some of you, either with some encouragement from one of 50 Below’s competitors, or on your own, are going to wonder what the nature of this relationship is.

I don’t want there to be any confusion or misunderstanding about why I’m doing this. I want you Dear Reader to be 100% clear about what the deal is. And because of that, I hope you will respect my position and my conclusion. If at any point in the future anything changes I will be equally clear.

No, This little missive is not brief. It’s not a bunch of key concepts organized in bullet points. You’re going to probably want to carve out a chunk of time to read it, but damnit, it’s my site and it’s one of the few places I can do whatever the hell I want! It’s a blog and I like to rant! And I’m writing a lot of it on an airplane flying back home from Duluth so I’ve got time to burn.

Also, I don’t have an editor anywhere around here so I’m sure there’s a lot of really bad writing in here as well. Also (see?! two sentences in a row that start with also!), because this is my point of view and not officially a statement from 50 Below, I’m going to be pretty direct so there’s not a lot of ambiguity.

On with the show…

As some of you may have noticed, I’ve placed an advertisement on my blog here for 50 Below. In addition, you need to know that I have entered into a co-marketing partnership with 50 Below to help promote, and more importantly, develop, their range of solutions for the motorcycle and powersports industries.

If you’re a long-time reader of my random thoughts and rants in Dealernews or here on this site (Congratulations! You’re among a very small, and elite group of people!), you should be saying to yourself, “Self: but I thought Todd has said repeatedly in his columns and in his Indy presentations that all of those turn-key, 3rd party website providers were to be avoided if at all possible.” (Actually, to be honest, I’ve said they were all crap) And yes, when those things were written or spoken it was, in my rather well-informed opinion, true.

I fully stand behind the fact that when I expressed those views that if a dealership was committed to really taking on things like e-commerce or using their web presence as a cornerstone of their marketing strategy that the only honest advise I could give was to take it on and build something unique, bespoke, custom… Expensive.

That was before I began a project for A&S Powersports, the dealership that I am, at the time of this writing, responsible for the development and operation of their websites.

I’m pleased to say that now, for like 98% of you, when you ask me what you need to do to get online and really take it on, instead of of a 16 page proposal that had a ton of bullet points and would require you to spend a lot of money, my advise boils down to the following three points:

1. Sign up with 50 Below (load it up… get EZ-Shop, Shop by fitment, and when they launch some of the cool-as-hell stuff that I’ve seen this week, whatever it costs, you’ll need that too…)
2. Have someone that is at least full-time to really take it on that has the competence and ability to make the most of it. You don’t have a service department without a Service Manager do you? How about a sales department with no Sales Manager? Parts department with no Parts Manager? Nope. Nope. And…… Nope. So why would you have a line of your business that has more potential for revenue than all three combined (and right now, without exaggeration, that potential exists) without at least one person dedicated to it full time?
   Would you buy a new box of tools from the Snap-On guy, roll a bike in front of it and then get pissed because when you came back at the end of the month the bike still doesn’t run?
3. Hire me as an obscenely high-priced consultant to really show you how to make enough money so that you can sleep on a bed of $100 bills with three or four MotoGP Umbrella Girls.

(Step #3 is optional, but highly recommended)

Anyway on with the main story…

Over the years, A&S had one primary website, www.ascycles.com. This site was doing double duty as a successful dealership-based e-commerce operation, and our “dealership” website. So whenever we needed to communicate something like an event, or a vehicle financing special, it had to go onto a site that was generating significant e-commerce revenue from PG&A sales to BMW riders all over the country. This meant “giving up” things like screen real estate, navigation areas etc. for locally oriented purposes at the expense of direct revenue generation via e-commerce (promotion space, merchandising, etc.).

At the beginning of this year A&S took on Ducati and created a new line of business, A&S Ducati. This was going to require some shuffling around and thinking about what I was going to do in terms of site organization.

I made the decision that:

• the site www.ascycles.com should remain focused on BMW Motorcycle e-commerce
• there should be a new dedicated Ducati e-commerce site (www.ducati-motorcycle-parts.com (I can’t believe that in 2009 that this prime, SEO worthy domain was available!)
• I should create two new sites for local dealership activities (vehicle information, lead generation, local community activities, etc.).

I had some key goals or constraints for these two new dealer sites:

1) They had to be easily maintainable directly by A&S sales and marketing staff. I had zero desire, interest, or time to do things like put up new graphics or change content on these sites. So there needed to be some kind of easy-to-use content management system.

I could custom develop a site around a content management system (CMS) platform like WordPress or maybe suck it up and go with one of those 3rd party, turn-key sites that focus on the powersports industry. At this point in the process, you need to read that last part with a sneer of disdain bordering on disgust. Remember, I still didn’t like any of them.

2) I wanted a system that automagically had things like vehicle specs and OEM promotions just show up on the site. Well, that obviously ruled out building a custom site on a CMS and pretty much forced me to at least consider one of the three players in this space.

So I wrote up an extensive evaluation questionnaire similar to the one Arlo did for Dealernews. No, you can’t see my questionnaire because I did it as part of my day job for A&S, but Arlo’s is a pretty good representation of what I was asking.

I was going to grill the hell out of these guys and if they couldn’t handle it then maybe I’d have to go the custom route.

So I wrote up the questions, emailed them to each of the vendors, had them fill them out and then scheduled the follow up interviews.

Now I want to be very clear here. I was asking questions to a detail and a level that I’m 100% sure that none of you ask. How do I know that? Because all three told me that. They all said that I was asking stuff that they had never had any dealer ask them.

Because of my years, and years, and years in the software sales industry before I came to the powersports market, I know how to get through the smokescreens, the fake demos, the hand-waving, etc. I was a sales engineer during the dot-com days. I know how to rig a demo. Therefore I know how to spot a rigged game.

And remember, I was looking to spend real money for the dealership where I worked on not one, but two sites. I don’t take my job lightly. I’m obsessive to the point of being a pain in the ass. But I’m pretty good at what I do so I consider it a fair trade.

Also keep in mind that I was sort of throwing my weight in as somewhat of an expert in the motorcycle and powersports industry when I was asking these questions. As in, “You know who I am right? You know, if I end up picking you that means that I’m going against my past stand against a turn-key site and that might be potentially valuable for your company… Right?”

I’m kind of like the male version of Paris Hilton when it comes to the internet in this industry except I don’t carry around an ugly rat-dog and I make a lot, lot, lot less money.

And I’m not as hot.
Or as skinny.

OK… Maybe I’m more like Oprah.

But male.
And white.
And thinner…
And much, much, much poorer.

Anyway… I was being very clear that:

1. I don’t want to use any of you
2. If you impress me, I’m going to be very vocal about it
3. I’m 90% sure that you’re not going to impress me
4. It’s worth your effort to try to impress me

So onto the results:

Company A:

To sum up Company A in powersports terms, they are the equivalent of an inexpensive Chinese motorcycle. It’s cheap, and yea, it technically qualifies as as a motorcycle, but I would never buy one or ride on one or let a friend buy one. And it’s sure as heck not going to win you any races.

• They pretty much refused to offer much of anything in the way of a written response to my RFQ questionnaire so it fell to a phone call.
• On the initial phone call I went though the answers with a salesperson that I’m pretty sure had just turned on a computer for the very first time a day or two before we talked. They were totally clueless about everything. They finally admitted they were new (why would they have a brand new sales person talk to someone like me?! What were they thinking?!) and they were going to get their boss involved. That was probably a mistake.
• “The Boss” was one of the most unpleasant people I have ever had to deal in a sales/customer interaction in recent memory. And they were pretty clueless as well. On several occasions their initial response to a question was something along the lines of “Why do you need to know that?” Because maybe I’d like to know as much as I can about the platform I’m going to invest a big chunk of money in and depend on as a significant part of my business’s future success. How’s that for a reason? Good grief… Sales training anyone?
• So in addition to the general unpleasant feeling about the call, the solution was so horrible that I pretty much stopped writing down answers on my notes and tried to get off the phone as quickly as possible.
• Well, they do have pretty good micro-fiche solutions. I think they should go back to focusing on that, hand off all their customers to 50 Below and just move on. But that’s just me.

Company A’s verdict… Immediate and total FAIL!

Company B:

In powersports terms, Company B is a 1996 Virago. It might have been an adequate bike for the time, but it’s 2009 for Pete’s sake! A new coat of paint and new tires are not enough to let it compete in the modern marketplace!

• Dated platform. They have not made, nor do they seem to be interested in making any significant or necessary advancements or improvements to their products in several years.
• Pretty much without exception, every one of the sites I’ve ever seen that is based on their platform is ugly. Not just ugly based on 2009 standards, but most of these sites would have been ugly back in 1998 when people still thought that the <blink> tag was cool. I know, because when I judged the top websites for the 2009 Indy show, I had to suffer through reviewing like 90 of them. The good news is I could identify them before the header graphic had even loaded so I didn’t have to suffer long before I moved on to the next one.
  While I can’t fault you dealers for not being graphic designers, or knowing anything about how to design a website that enhances your brand image, you’d think that the largest supplier of websites to the powersports industry would have a frickin clue and hire someone that had more artistic and design background than painting portraits of Elvis on black velvet at the country fair.
• Horrible, horrible shopping experience. Face it… Customers do… not… shop… by… distributor… catalog…! A customer for a motorcycle jacket does not care or know who Tucker Rocky is! Sure, they know Parts Unlimited because their banners are all over the race track, but I’d say less than 1% of your customers has a clue what Parts Unlimited actually does. And they sure as hell don’t want to search through those catalogs for something like a jacket, sprocket, tire, or helmet.
• You’re locked into a long term contract. You are required to sign a one year contract with an non-optional auto-renew clause. No way! I’m not getting locked into anything as important as my website’s platform. Things change in our industry and on the web too quickly to run the risk of missing a significant opportunity to do the right thing for my business because I’m tied to an agreement that is not in my best interest. Seriously, what do they think they are…? A cell phone company?
• Very poor customer service. When I used them on a limited basis for a dealership I was trying to help out (to the point that I wrote several strongly worded e-mails about the issue to their parent company’s upper management) I basically got an “oh… so sorry…” response. I (and by extension Company B’s customer) never did get answers to my questions.
• Very expensive. When all the bells and whistles are turned on to get it to come close to what 50 Below offers when all their bells and whistles are turned on they were almost $10,000 more expensive than 50 Below over a year for both sites. And that’s with, in my opinion, an inferior product and much worse service.
  You’d think that if anyone could get a discount it would be me so they’d have a pretty good reference account… Nope… It’s not until now, in a down market with an obviously inferior product are they offering any discounts to try to shore up customers that are finally realizing that they’ve been overpaying for years. If you happen to have been a customer of Company B, and they offer you a discount going forward, make sure that you ask if you can get that discount back-dated for all those years they were over charging you.
• Here’s a real shocker… The person that I talked to on the phone, a guy that I’ve met at a few Indy shows and you would think would obviously know that there’s a fair chance that I’ll talk to people about our conversation, didn’t hesitate to take advantage of opportunities to totally rip apart the parent company that had just spent an obscene amount of money to acquire them. So here’s an executive at the company ripping apart his parent company to a potential, and somewhat influential, customer. What does that say about the internal dynamics of the entire operation and its internal corporate health?
• Backing up the above indications of bad blood between the acquired and the acquirer was that when I was at Indy and talked to several guys from another division of the acquiring company about their thoughts of the soon to be corporate sibling, they ripped them apart. Not just a little either. These are not rumors about hostility within the overall organization. This is my first-hand account with both sides of this company being openly hostile to the other guys.
• So obviously there’s something really messed up at that company and it’s just one more giant indication that I’d never want to recommend them to anyone, let alone choose them myself.
• I even offered the following to them: “If you are interested in detailed reasons why Company B was not chosen, and think that my input/reasons would help your development in the future, let me know.” Nothing… OK, fine. Maybe in spite of my position in the industry, my years of experience, my demonstrated success in e-commerce in the motorcycle industry they figured I was full of crap and had nothing to learn from. Might have been worth a discussion or two though, no?

Now again keep in mind that both of these vendors knew who I was. That by signing me and the dealership where I worked it would be at least a tacit, and at best an overt, endorsement of their company and their products.

And in both of these cases they acted as if they could care less. I was stunned. I expected a little more effort.

So, I’d say that if they were willing to treat me like that (and let’s not forget, I’m really, really important around here! ), before I’d even signed up with them, you gotta wonder what would happen if I was a customer and ran into “issues.”

So once again. Total… Fail…

50 Below:

With 50 Below, you’re getting a race ready factory bike. You even get factory support in the form of their Marketing Account Executives that will work with you, as part of the standard package to help you get your site working the way it’s supposed to work. They want to help you win. Let them!

So then I move on to 50 Below… Keep in mind that I went into this whole process positive that 50 Below was going to be the absolute worst. So much so that I had considered not even including them.

Why?

1) The solution they first offered a few years ago was so God-awful horrible. That whole page turning, flash-based, parts catalog based shopping experience was just miserable. The templates were eye-searingly bad. Etc. etc.

2) They had had some pretty significant financial and/or legal issues in their recent past that I thought indicated that they were at worst shady and at best irresponsible. Everyone I talked to about 50 Below, even today, universally says something along the lines of:

• “Are they still in business?”
• “Didn’t they all get hauled off to Gitmo?”
• “Don’t they try to keep your domain name if you leave their service?”
• (It should be pointed out that a lot of this FUD was being propagated and encouraged to propagate by good ol’ Company B above… Oh… Look… One more reason to not pick Company B… They like to play dirty.). For the record, none of the above was true or at least true to the extent that it was portrayed. If you want to know what really happened, talk to 50 Below. They will explain it to you.

Or better yet, check this out…

I didn’t know this at first, and I bet most of you might not know this, but 50 Below is also involved in other industries other than powersports. For instance, they are the only approved provider for franchised UPS stores. They are also the sole, authorized website providers for various financial and insurance firm’s independent advisers like UBS and Smith Barney.

I’m willing to bet that all those companies probably did a fair amount of due diligence when they decided to pick 50 Below. WAYYYY more than I did and I’m willing to bet WAYYYY more than you’re going to do. You think they would have picked 50 Below if the rumors were even close to being true? Yea. I don’t think so either.

And does being involved in those other industries mean that 50 Below is not “focused” or “dedicated” to the powersports markets? Hell no… It means that they are diversified across multiple industries so that when crap like what’s hitting our industry now happens, it doesn’t cripple them. Now if all you’re involved in is the powersports industries and things start getting bad, what do you lean on? Oh… Right…Nothing.

So onto the results of my investigation…

About 5 minutes into the presentation on their product offering I was really, really impressed with

1. the improvements they had made in the last few years and
2. how astonishingly far beyond the other two competitors they were.

Their website designs are composed of modern best-practices. All that crappy table based layout stuff that they had used in the past, and that the other two companies still used was gone with clean and efficient CSS based design. Nice!

Their shopping experience, what they are calling EZ-Shop, finally addressed the horrible practice of catalog based shopping. Customers can shop by category, brand, and even fitment to the model of vehicle that they own. This is seriously an order of magnitude better than the other two solutions. If you care about e-commerce at all as a part of your overall business strategy, this feature alone is reason to pick 50 Below. The fact that they are kicking ass on so many other features as well just makes this such a no brainer solution.

Is 50 Below perfect? Nope. Is it better than the rest? Absolutely.

Are there things I’d like to see changed or improved? Yes. And you know what? They are really interested in making those changes. In fact they already have plans, prototypes, or almost released features to address a lot of the things I’d like to see. They seem to actually be very committed to making their product better and better and providing more value and better service. What more can you ask for from a partner?

If 50 Below would have had an offering like they have now when I began the work on the sites I manage, I would have used it. Or to put it another way, if I was going to go to work for a new dealership today with the goal of creating another world-class internet presence I would use 50 Below as the platform upon which I would begin my work. No brainer.

Where do you want your techs to buy their tools? Snap On? MAC? Or some dude selling crap from China out of a van at the flea market? Same deal.

Does this mean that just because you use 50 Below you’ll automagically end up with a website that shows up #1 in all Google results and generates millions of dollars in e-commerce revenue? Not a chance. Just because you buy a Ducati 1098R can you jump on it and win an WSBK title? Nope. But if you have an amazing rider and a talented team working on it, you’ll have better than a fighting chance.

I get from 50 Below a real sense of forward momentum, valuable progress, continuous improvement. Moving forward at an amazing speed. In the time I’ve spent working with 50 Below I’ve seen a team of dedicated individuals that are hell-bent on creating the ultimate platform for the motorcycle and powersports industries.

In conclusion (finally…), I just spent the better part of a week in Duluth meeting with the folks from 50 Below. Seeing what they’ve got going on, seeing what’s coming, etc. I wanted to make sure that if I was going to get behind promoting something that I could do it in good faith.

After doing that I’m even more convinced that I made the right decision for A&S to use them for my projects and that I can recommend them as the default, no-brainer, “what are you waiting for?”, go-to solution for the motorcycle and powersports industry when it comes to turn-key internet presences.

Why do I want you to all move to 50 Below? Because I want to be able to actually help this industry start using the web so you’ll be successful. I’m sick of seeing dealers wallow around with no website, or crap websites, and not be able to tell you in simple terms how to do the stuff you need to be doing.

Now I can. Call 50 Below. Tell them you just read this and you’re ready to start taking responsibility for getting your dealership into the 21st century.

Here’s some more details about how and why I’m working with 50 Below:

• I contacted them to see if there was anything I could do to help them get more dealers to use their platform. Why? Because I could not understand why anyone except in the most unusual of circumstances would not choose 50 Below. I have a very limited tolerance for irrational behaviour. If after reading this, and after really digging into the three options out there you don’t choose 50 Below, well, I’d love to hear why. Seriously… If you don’t pick 50 Below, tell me why. If it’s a valid point, I will ask them to address the issue. If it’s a legitimate issue, I’ll update this post with that info.
• They are paying me a small consulting retainer to do things like write tutorials for their newsletters and other educational materials in the future. This fee also includes an advertising component for the banner on my site. Trust me, it’s not a lot of money and if I didn’t feel that I was doing the right thing to recommend them to you, the amount of money they are paying me would never be enough to get me to do it.
• I absolutely, positively, do not make any more or less money if you sign up or don’t sign up with them.
• And to be very, very clear, just because I write for Dealernews there is not even the slightest connection between my personal opinions and conclusions and anyone at Dealernews. I will not involve myself in any activity at Dealernews that involves the review or discussion of the competing platforms while I’m working with 50 Below.

Tags:dealerships, E-Commerce, ecommerce, internet, marketing, motorcycle, Motorcycle Advertising, powersports, reviews, selling-online

While I know that most of you see me as the ultimate guru of all things web (right?), the truth is, there’s a wealth of places out there other than me where you can (and really should) find out a lot more about things like e-commerce, internet advertising, and integrating social media into your overall internet marketing strategy and so on.

The truth is, this area of technology (especially social media) is forming and re-forming so fast that if you blink you’re likely to miss a development or a breakthrough that becomes the next “big thing.” You don’t want to be the one that misses out on the next hot trend do you?

If you answered “No!” then read on. If you answered “Yes!” then I’m not sure we have anything else to talk about frankly.

So, without further ado, this month I’m going to save you some time in filtering out the wheat from the chaff (ooohhh… an 18th century reference in a 21st century column!) and point out some of the resources that I find pretty valuable in keeping up with what’s hot, happening, and now.

E-Commerce

First and foremost is a resources that I’ve mentioned in the past when it comes to e-commerce, and that’s Internet Retailer (www.internetretailer.com). Internet Retailer has a print magazine that you can get for free, as well as several really well done e-mail newsletters that you can subscribe to. Internet Retailer is also responsible for the Top 500 Guide, which every year ranks the top largest e-commerce players in terms of revenue and provides a wealth of information such as traffic figures, sales performance data (conversion rates, average order value, etc.) that you can use to benchmark your own performance.

Next up in the e-commerce space is Shop.org (guess what the address of their website is). Shop.org is the e-commerce focus for the larger National Retail Federation (www.nrf.com). Shop.org puts out a great series of e-mail newsletters that do an excellent job of keeping the reader up on what’s going on in the e-commerce space. I find the coverage they provide to have a slightly different twist than Internet Retailer and between the two you can get a great picture of what’s working, what’s coming down the road, what you need to be doing to get ahead and once you’re there, to stay there.

Internet Marketing

As all internet marketing pretty much begins by looking through the lens of the search engines like Google, Yahoo, MSN Live, etc. the best place to get your daily fix of search engine related wisdom is probably Search Engine Watch (www.searchenginewatch.com). They have a series of e-mail updates, as well as a worthwhile RSS feed and Twitter profile (@sewatch) that you should be reading. They cover pretty much all the aspects of search engine optimization (SEO) and search engine marketing (SEM) that you will ever need to know (or at least could ever remember or implement).

The next excellent resource for internet (and even general) marketing is Marketing Sherpa (www.marketingsherpa.com). Marketing Sherpa has developed the reputation as the source for marketing best practices. These are real-world best practices, not high-level theory like you’d get from some place like the American Marketing Association. While they do offer some free reports and resources (their write-ups are free for the first week), to get the most out of what Marketing Sherpa has to offer you will need to pay for the annual subscription. You can sign up for a free trial subscription to check it out. I recommend that you do.

Social Media, etc.

Finally we have the increasingly important and dynamically changing world of social media and all of the hybrid offshoots of sites like Facebook and Twitter.

First up is a site called Mashable (www.mashable.com) who bills itself as The Social Media Guide. They do an excellent job of covering how to use the exisiting social sites both from the perspective of a user, as well as from the perspective of a business looking to use social media for marketing and promotional purposes. In addition they keep on top of the bubbling, churning, and chaotic world of emerging social media players as well as clever and useful ways to leverage the social media ecosystem of feeds, API, applications, and widgets.

Finally I’m offering up a great site, TechCrunch (www.techcrunch.com), that will keep you abreast of both the social media scene as well as the business world of the internet from a technical perspective. TechCrunch is actually billed as a blog, but it’s a blog (and extended media empire known as the Crunch Network) that headed by probably the best “new business” gadfly around, Michael Arrington. Michael and his team are plugged into who’s doing what, what it’s good for, who’s getting funded and who’s the newest member of the internet industry deadpool. It’s a great resource that you don’t want to miss.

So there you have it. A great list of summer reading when you need to know what’s going on in the world of the web. I’ve only scratched the surface by offering up the ones that I read on a regular basis. If you have some great resources you want to share, let me know!

Tags:Column, dealerships, E-Commerce, ecommerce, internet, marketing, motorcycle, powersports, Powersports Industry, Resources, Search Engine Optimization, selling-online, social marketing, social media, social-networking

If you were at Indy, perhaps you saw their booth announcing their new program. Or perhaps you’ve seen some of their advertising. Regardless of where or if you’ve heard about their new program, Motorcycle Superstore has a new initiative that may help you make more money.

What?! How can one of those “evil” internet retailers (and not just “one of”, Motorcycle Superstore is the largest e-commerce player in our market as rated by Internet Retailer in their Top 500 retailers survey for 2008) that so many of you hate have anything to offer your business?

The program that Motorcycle Superstore is rolling out is called the “Preferred Installer Program” and the idea is that dealers sign up with Motorcycle Superstore to be an installation “partner.” When a customer buys a qualifying product from their site, the part gets shipped directly to your dealership where you install and configure it on the buyer’s bike.

If you are familiar with the automobile tire and accessory company The Tire Rack, then this program is going to sound really familiar to you because it’s a model that Motorcycle Superstore’s Don Becklin has pretty much followed for their PI program.

Currently the program is only covering tires, exhaust systems, and Power Commanders, but that may be expanded in the future based on findings from customers and participating dealers.

Now that you know a little more about the program, you’re probably wondering what in the heck is this thing really all about. Where’s the scam? Is this some kind of big wooden horse that you’d be letting into your shop only to have a bunch of Motorcycle Superstore invaders come pouring out?

Not quite. You see, Motorcycle Superstore gets at least half-a-million visitors a month (per Internet Retailer’s estimates, I think the real number is much higher) and only like 2.5% of those people ever buy something from them. Where do the rest of those people go? Well, while the exact numbers are pretty much any one’s guess, the overwhelming majority of purchases in our industry still happen across a counter, face-to-face in a brick and mortar retail store.

Wait! But how can that be? I’ve heard for years how the internet is destroying dealerships and other powersports retailers. Customers come in, ask a bunch of questions, try on a bunch of stuff, and then leave to buy what they need online for a few bucks less.

That’s quite a paradox. Don’s company’s seeing millions of people doing a bunch of research online only to buy somewhere else at the same time dealers are saying that the same thing is happening to them! How do we resolve this paradox?

The truth is, you can’t. The reality is that certain customers, at certain times, for certain products are going to choose the retail channel that best suits their needs. It’s just a fact and trying to fight it is as pointless as tilting at windmills.

Motorcycle Superstore has realized this and has developed a program that they hope will allow them to sell more stuff, make it easier on their (and your) customers, and help support and build the dealer and independent retailers at the same time. It’s a way to grow the pie instead of fighting over the crumbs!

Face it, do you really want to sell a set of tires at close to, if not at, cost just to get customers in your shop? You really want to carry the inventory, or incur the ordering, freight, and receiving expenses on those tires in hopes of getting some extra service work or to attract a new customer into your shop? Of course not!

Just taking tires as an example, Motorcycle Superstore is probably the largest retailer of motorcycle tires on the face of the planet. They get deliveries by the container load. They are getting prices on tires you could never dream of. So it makes sense for them to build their business on that. However, the missing link is what does the customer do with them once they get them? There’s no way anyone is mounting modern sport bike tires on their new Ducati 1098 with a couple tire irons and some Vaseline. Let alone getting them balanced. They need you for that.

This doesn’t even scratch the surface for things like tuning setups for exhaust systems and Power Commanders. If you’re a tuning shop, get ready to fire up the dyno because you may have more work in the near future!

Now that brings me back a few years when I wrote that if someone comes into your shop carrying a new set of tires freshly delivered from some website under their arms, instead of treating that customer like some kind of scum, you should be welcoming them and even going so far as to just mount them for free in the hopes of making an impression on that new customer. Boy, did some of you have issues with that!

Ok, so maybe “free” was going a little far to make my point, but I stand behind my primary idea that someone else’s website’s sale got a new customer through your door. And I’m willing to bet some pretty decent money that your typical cost of new customer acquisition is a lot higher than you’d make off that set of tires.

And now here’s a program, set up by one of those “evil” internet discount shops, that is intended to formally allow you to do exactly what I was preaching two years ago!

I’m going to close this month with two last points. The first is a simple thought exercise where we imagine the following scenario:

A lifelong Kawasaki riders buys some new tires off from Motorcycle Superstore. Let’s say that Motorcycle Superstore make $30 bucks net from that sale (which is probably generous depending on shipping charges, etc., etc.). Your Suzuki and Honda shop was wise and followed my advise and got on board for the PI program and that customer has the tires shipped to your shop.

You get the confirmation email that the tires are on the way and you proactively call the customer up to set up a time for the service (you will do it that way won’t you? Surprise the customer with a level of service they weren’t expecting?). The customer comes in for the tire service and because your advisers have been reading Dave’s columns on selling service they are able to upsell something like a brake system flush, oil change, etc.

Now, while the customer is waiting for the service work to be done, they check out the new Gixxer. Maybe one of your sales people get them on it for a test ride. They like it! “Nice bike!”

They leave your shop with an amazing impression of great service and possibly a decision on the next bike that they’ll buy in 6-8 months.

Now what did this all cost you? Did you have to run an expensive TV campaign? Take out a full page in the local newspaper? No. You got all this because you lost the sale of a set of tires and you executed flawlessly once the ball was on your side of the court.

Finally, if you’re still not convinced that this program is something worthwhile that you need to get on board with, do this. Go to the Tirerack’s website (www.tirerack.com) and find an installer or two in your area that has signed up for their program. Take a long lunch and ride down to a couple and talk to the mangers there and ask them how that program is working for them in the automotive arena.

Then when you get back from your lunch, go to here (http://www.motorcycle-superstore.com/818/MNGR/Preferred-Installer-Dealer-Sign-Up-Information.aspx) to sign up for Motorcycle Superstore’s PI program. I’m willing to be another shop in your area is going to.

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