Archive for the 'motorcycle' tag

Report All MAP Violations!

map-poster-lock-big

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!

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Selling Online #43 : Put Your Best Foot Forward

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.

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Selling Online #42 : Be Where Your Customers Are

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!

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Selling Online #41 : Future Shock

Last month’s column generated more emails than any other that I’ve ever written. After years of telling dealers they needed to get online all it took was the near collapse of the Western world’s economy to get through to you. You’re a hard bunch to motivate.

The reason I’ve been so gung-ho on the web was because it was the only practical way for a dealership to dramatically grow its revenue. A dealership could do nothing and float along with the economy, and we’ve seen what’s happening to them. A dealership could try to expand it’s physical presence into other markets by opening more shops, but that’s expensive, difficult, and risky. Or a dealership could take on the web in a big way.

On one hand, it’s good that so many of you seem to be doing this now. On the other hand I think a lot of you may have missed the window of opportunity. At least as far as jumping into straight e-commerce goes. Especially if my email load is any indication. I know of at least 10 dealerships that say they are going to jump in. Add to that the huge number that didn’t write to me, the number of dealerships already doing it, and of course the huge pure-play e-commerce guys like MotorcycleSuperstore and RevZilla, and as you can see, the pool is pretty darn crowded now.

So given this situation, I want to end my series of columns for 2009 playing Nostradamus and set the stage for a plausible future that I think you need to be thinking about, if not outright planning for.

The year is 2012. The previous two years didn’t provide the much hoped-for economic recovery (think I’m being overly pessimistic? Read this: http://blogs.harvardbusiness.org/tjan/2009/09/the-next-crisis-coming-in-2011.html). The economy as a whole managed to eek out a small amount of growth but only enough to keep it from sliding backwards. What’s worse is that it proved to be a totally jobless “recovery.” Consumers in the USA didn’t have the disposable income nor the security necessary to fuel the powersports industry at a level necessary to maintain it’s current model. More and more dealers closed. So many closed in fact that large urban centers around the US were now without a single powersports dealership. OEM’s were sitting on warehouses and leased lots full of vehicles that were working on their second or third birthday. Production back in their respective home countries was at a virtual standstill.

The dire economic situation had now forced the OEM’s (as well as parts, accessory, and gear manufacturers) to rethink not only their own business models, but the overall business model for our industry as a whole. The idea of having literally thousands of typically undifferentiated retailers across the country selling virtually undifferentiated products out of establishments that by their very nature were burdened with unsustainable overhead and other expenses had finally proved its ultimate folly.

Customers still wanted their motorcycles, ATV, PWC’s, etc. The OEM’s still wanted to stay in business producing them. The ultimate problem was the distribution and retail sales system. Finally, the smart OEM’s hit on a model that had worked before. They looked at the personal computer market pre-Dell and realized that there was an opportunity to leverage the phenomenal opportunity that the internet provided and essentially sell semi-direct. Customers would shop on the OEM’s, pick out the vehicle and options, and then buy it online.

However, unlike the relatively inexpensive and “basic” home PC, the products in our industry presented a level of technical, financial, and legal complexity that they still required one more node in the supply chain. Unlike a PC from Dell, the vehicle would not be shipped directly to the end customer.

The solution was to evolve to a model that traded information for inventory. Vehicle and PG&A inventory was now held as high in the supply chain as possible. What were once “dealerships” that occupied ten’s of thousands of square feet were now transformed into small “authorized delivery, setup, and service” locations. It was a radical transformation from huge dealerships to many more boutique-type establishments that now focused on much more high margin business activities such as the F&I portion of the sale, vehicle service and warranty work, and so on.

The fundamental discovery that allowed this model to work was the realization that the just-in-time logistics costs to get the right vehicle to the right delivery point at the right time could be done far more economically than the aggregated real and opportunity costs of the old (i.e. current) way of doing things.

Customers also shop for OEM branded and produced PG&A on the OEM’s site and have the opportunity to take delivery (for installation or set-up for instance) of the products from participating retail/delivery locations for a revenue share with the OEM.

These Delivery, Setup and Service locations were now composed of mostly high-magin activities and were relieved of much of the non value-added overhead burden from the previous industry model. However, because there was the potential for so many more locations in any given market, the emphasis on quality and high levels of customer service was even greater.

So what’s the moral of this cautionary tale? It’s this: “if you think the internet has been disruptive to your business so far, you’ve most likely not seen anything yet”! Our industry has not yet even begun to scratch the surface of what the internet and all of it’s prodigal technologies and business practices can do for (or to) us.

I’m sure a lot of you are shaking your head and saying: “this guy’s nuts!” Keep in mind I was telling you all two years ago to get into the e-commerce game. I’m sure more than a few of the dealers trying to finally get into the e-commerce game once said the same thing about selling on their websites. Most of you didn’t move until it was too late on the e-commerce front. What if I’m right about this? What are you going to do to prepare?

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Selling Online #40 : Tend Your Online Garden

“Well the frost is on the pumpkin, And the hay is in the barn…” those lines from James Taylor’s “Walking Man” always remind me of this time of the year. It’s harvest time, and it’s time for the gardener/farmer to go out and start picking the crops they’ve been growing all season.
If you’re going to play in the internet you need to understand the importance of having a full time “gardener” for your online garden. Someone to nurture it, coax it along, do all of the right things at the right times. Otherwise you’ll end up with what I see a lot of out there: a land of promise transformed into a barren and forsaken land whose bleakness is only interrupted by patches of weeds, brambles, and thorns.
This month’s column compliments perfectly last month’s screed on the importance of hiring the right people. I was up in the air as to which one to present first, but once I seized on the garden/farming metaphor, I figured this one made more sense to run in October. :)

Last month’s column was all about why and how to hire the best people possible, this month’s column is about what you need them to do and why it needs to be a full-time position.

There’s a lot of moving parts in a modern, successful online operation. There’s the technical side of things to make sure the websites, databases, and applications all work the way they are supposed to. Then there’s the artistic and design aspects to make sure that the world perceives your brand as favoriably as possible. There’s the art and science of search engine optimization and search engine marketing. You’ve also got to consider product merchandising, promotions, and the overall shopping experience. Of course on top of all those, there’s the seemingly infinite number of other things that always seem to pop up. Broken things to fix, decent things to improve, opportunities to pursue, ideas to test and experiment with, etc. etc.
If you think that it’s possible to do all of this without at least one full time person, you’re delusional. In a perfect world you’d have at least one person working on each of these facets. If you want to be successful online, either via e-commerce or just online marketing and advertising (perhaps via social networking technologies like Twitter, Facebook, etc.) you need to have at least one highly competent and dedicated individual in charge of it all.
You need someone that can eat and sleep this stuff. There’s simply too many highly lucrative opportunities to fill this position with a 9-5 clock puncher. You need someone that is passionate about your market (motorcycles, racing, ATV’s, watercraft, etc.), passionate about the web, passionate about social technologies, passionate about design. You need to encourage and support them with the tools, technologies, and most importantly education necessary to stay on top of it all.
I can say with certainty that when a business has at least one person like I’m describing above, they are virtually unstoppable. When they don’t have that, they go nowhere fast and the decline is dramatic and almost instantaneous. It’s a hard climb to the top and it’s too easy on the internet to be knocked off your perch. It’s so easy for the competition to take advantages of unprotected flanks. You’re at the mercy of ever-changing search engine algorithms that can wipe you off the face of web with the flip of a bit.
If you think that you can just move someone that did a decent job as a parts manager into the role of running your websites, your e-commerce, your online marketing and expect to see anything short of poor results without a ton of training, development, and support, you’re just not being realistic.
But assuming that you do hire someone with the intelligence, drive, and potential, how do you get them started. Well, at the risk of being immodest, the first thing you should do is have them read all my columns. If you go wayyyy back to the very beginning, over the years I’ve laid out an almost step-by-step outline of what to do, how to do it, where to get more information, etc. Considering how much I charge for consulting, and considering you’re getting Dealernews for free, if you’re not doing what I’m telling you, well, then there’s something wrong with you. Look, I’m not being arrogant if it’s true!
This is an area of specialized expertise just like the other aspects of your dealership. Do you have a service department without a service manager? A sales department without a sales manager? A parts department without a parts manager? Not if you’re a high-performing dealership. Obviously if you’re doing e-commerce there’s going to be a lot of overlap into areas of the parts department, but you still need to think of your online operations like its own line of business.
I don’t think there’s very many retailers/dealerships out there that have figured this out yet. I think part of that is because a lot of the 20-type groups and other general industry consultants that may have years and years of excellent experience in the “traditional” dealership management roles don’t have a clue about the internet. They don’t properly recognize the immense potential it represents, nor do they properly understand or respect how difficult it is to do it right.
Because the majority of training and education dealerships do get (if they get any) is from these traditional sources, they are absolutely missing out on this stuff. That’s why I write this column. That’s why Dealernews is the only industry trade publication that has dedicated space to these topics for years. We recognize the need to get this information out to you, the dealers, retailers, and independent shops to help you survive the uncertain and turbulent future.
We’ve only witnessed the beginning of the amazing potential the internet has to dramatically and radically reshape the very nature of our industry. Next month I’m going to unleash on you my nightmare vision of the fiery hell-scape unleashed by the Internet Monster in all its fury. Whoa be unto those that have not embraced Todd’s Gospel of The Interwebs and are caught up in the chaotic aftermath (it will be right after Halloween after all!).
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Selling Online #39.2 : You Get What You Pay For : Hiring Pt. II

Last month I laid out my thesis that a lot of the problems at dealerships are a result of a lack of hiring competent, educated, and professional people for roles that should be contributing more positively to the success of the shop. I finished up last month with my projection for how the dealership market was going to shake out over the next two years. One group at the bottom just goes away never to be heard from again, and a group at the top merge into larger groups that are run more by professionally educated businessmen and less by “enthusiasts.”

So what happens to you guys in the middle? The X% that makes up most of the market. If one of the above does not describe you, then you’re the one I’m writing this for.

1) You’ll fail. You’ll fail most likely because of poor management and poor execution. You’re overstaffed because you need all those people to keep rolling the rock up the hill, but none of the people you have either posses the ability or the time to move you to the next quantum state. You can’t cut headcount because all of those people are needed as they are propping up a rotten structure on a broken foundation. You can’t or won’t recognize the problem and replace those “props” with more useful people because you’re too busy fighting fires. You never get your head above the water so you never get a chance to focus on developing the processes that will keep all those fires from happening in the first place.

2) You’ll get it, and you’ll survive. Not only will you survive, but you’ll begin building a new structure that will allow you to become an outstanding mega-achiever when the economy and other environmental factors allow it.

I’m thinking that #2 sounds a little more fun.

As a manager you need to keep in mind that the only three things you can really do as a leader to enable a successful outcome are: 1) recruit, hire, or acquire the best people you can, 2) educate and train them to be as good as possible, and 3) create or enable the creation of the processes and environment that will allow them to make the most of their abilities and education.

You have no real control over anything else. So why are you spending any time on the stuff you can’t control? I know why you’re doing it now. Because most likely you’re surrounded by people that would have a hard time getting hired at Starbucks. Do some research into the hiring process at Starbucks. Is making coffee harder than anything you do? Are the people that are working at Starbucks coffee “enthusiasts?” Do the people working at Starbucks need years and years of experience in the coffee industry to make Starbucks successful? Then why do they pay better and offer better benefits to their people than most of you do?

When you consider how much more your dealership’s individual success depends on having the best people, why are you hiring any ol’ mouth-breathing meth-head that stumbles into your dealership from a craigslist ad?

When I manage people, if they don’t provide at least one better alternative way to do a task that I assign, I make a negative mental note of it. I don’t want staff that is just there to do a task I don’t have time to do myself! I want staff there to do a task because they can do it better than I can! If they don’t have the mental capability or desire to do that, they’ve just begun the process of looking for a new place to work.

Why are you hiring three people at $8/hr. that contribute $X to your company when you could be hiring one person at $20/hr. that could contribute $X*5 if they were educated, intelligent, motivated, and surrounded by other educated, intelligent, and motivated people?

I know why. Because you would never even consider paying $20/hr for that position and letting three other people go because you can’t “afford it”. Or you need the people to just keep beating out the fires. Or you think that if you did bring that person on they would get “bored” or they wouldn’t fit in because they would be the only person there with a degree, or whatever…

Well, here’s my prediction: if you don’t do it you’ll be out of business shortly. Either because of your own businesses “problems”, or because another dealership (local or online) that is doing what I’ve talked about this month drives you under.

Of course the next big challenge you’re going to be faced with if you’re still around in two years is learning how to manage and motivate highly functioning people that are interested in doing more than just “turning the crank”. You know what… There’s education and training for management too. :)

Epilogue: What do I have to say to all of you working stiffs that are reading this? Start making yourself invaluable. I’m not talking about the B.S. that typically passes for invaluable at most shops; “We can’t get rid of Ol’ Pete back there… He’s the only one that knows how all those 3×5 cards that we keep all our customer records on are organized” or “we can’t get rid of Ol’ Pete because he’s got 40 years of stuff locked away in his head.”

I’m talking about doing things that are going to be indispensable in two years that no one in our industry currently has a clue about. Like taking night classes to get a degree in things like internet marketing or e-commerce. Or joining organizations like The American Marketing Association and getting training in things like social media marketing. I’m talking about demanding that your boss provide you with education and training at places like Dealership University, or provides the resources to attend the Dealernews Live sessions at Indy, or attend in-depth educational opportunities like the one I’m going to be providing in Orlando for Leverage this October (face it… If you want to learn how to use the internet in this industry you can do a lot worse than learn it from me).

And if your boss is not reading this, is not following my directions, and you don’t start seeing some radical changes at your dealership in the coming months, then I’d suggest you start looking for a new place to work, because one way or another, you’re going to be doing that anyway in a year or two.

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Selling Online #39.1 : You Get What You Pay For : Hiring Pt. I

I’m going to begin this month’s epistle speaking some truth to power(sports). It’s another one of my columns where I’m right, but you’re probably not going to like it. I’d like to float the idea that a lot of you are your own worst enemy. I propose that a lot of the under-performance and failure going on in the powersports industry is your own doing.

“What?!” you say? “What is this idiot talking about?! Has he not been made aware of the general malaise of the world economy? None of what’s happening to me or my dealership has anything to do with my management or the calibre of people that I have working here! I’m only a victim of circumstance! How dare he blame me for my dealership’s troubles?”

Let me lay my main argument out for you. In my 5 years in this industry (after coming from the high-tech world) one of the most surprising and disturbing things I’ve noticed was the general lack of higher education or even formal professional training among dealership staff (often including the principal or GM level).

I propose that this is being driven by two main factors: 1) Dealerships, by and large, don’t pay worth a crap (I was appalled when I saw the results of Dealernews’ Wage and Benefits review. No wonder so many dealerships are such horrible places to shop in when you pay less than WalMart does for a night stock clerk), and 2) There’s a general lack of respect for the value of education within dealerships (perhaps driven by fear on the part of higher management that they will soon be surrounded by people that are “smarter than them.” Don’t laugh, I’ve had dealer principals admit as much.)

In this economy, less than 20% of college grads are able to find a job in their desired field [ http://abcnews.go.com/Business/story?id=7636561&page=1 ]. What does that say to you? It says to me that now is an excellent time to do some major replanting in your company.

You’ve got a pool of educated people out there that could bring significant improvements to your business. I’m sure that among all of those kids that are dejectedly dropping off applications at Starbucks, Home Depot, and Best Buy, that more than a few are motorcycle or powersports enthusiasts that could contribute positive things to your business if you made it worth their time. I’m not talking about picking up good people cheaply. I’m talking about an opportunity to pay reasonably well for value (these kids have significant financial requirements to think about http://redtape.msnbc.com/2009/05/college-debt-so-crushing-grad-says-i-wish-id-gone-to-prison-instead.html). There’s a big difference.

Yes, I’m fully aware that a lot of you reading this are the principals or management of dealerships or retail establishments that have been seen as “successful” for many years. I’m sure that more than a few of the dealerships that have gone under this past year were seen as successful as recently as a year or two ago. But that success was relative. They were competing with a bunch of other dealerships that weren’t exactly highly performing either. It’s fairly easy to be a good JV team when you’re competing with other JV teams in your neck of the woods. But shortly your JV team is going to be playing against the varsity and maybe even the pros from around the world. How’s that going to work out for you if you keep doing things the way you’re doing them now?

I can hear you know… “But Todd… You’re being ignorant and naive! We need to hire a lot of people with years and years of experience in this industry because they need to know how things work as there’s so many fires going on at any given time. We don’t have the money or time to recruit the best and the brightest because we’re dealing with all the crap going on every minute, of every hour, of every day.”

I suggest that you have so many fires to deal with at your shop because you’re doing it wrong. Look… In general (notwithstanding radical outliers that are caused by environmental factors outside of your control), positive outcomes are the result of two major things: 1) quality inputs and 2) a robust repeatable process that is continually reviewed and improved.

Beyond the products and services that you sell (which are by and large generic and totally undifferentiated) what other “inputs” into your business do you have to offer other than the people? Think about it.

What does this have to do with my column’s title, “Doing Business Online?” Everything!

Businessman vs. Enthusiast

Here’s what I see happening over the next two years:

1) The very small mom-and-pop shops are going to go out of business. They will just vanish. They don’t have anything worth buying from a merger or acquisition standpoint. The hole in those markets will be taken over by new dealerships that are part of large, multi-store “chains” or dealer groups that are run by professional businessmen.

2) Large (but not unhealthily so) dealerships that perhaps have been in the family for a while, will be taken over by sons or daughters that are fresh out of B-school. These are kids that have been around the industry for their whole life and know its ins & outs. They don’t see a lot of great prospects out there in the job market, so in spite of the many family fights in the past that included a “There’s no %^&*ing way I’ll work in that %$^$ #$%^ shop of yours!” they will realize a pragmatic reality and decide that perhaps they can bring to bear their exposure to the industry and the formal business education that they picked up at college.

So what’s going to happen to you, one of the dealers that make up the bulk of shops in the middle? Check back next month to see what kind of recommendations I have for how to get out of this cycle and set up your business for success in the future.

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Just To Be Clear…

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.).

I like etc. I buy it in bulk so I have plenty to throw around.

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.
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Selling Online #38 : Send Out A Probe

This is another one of those months where you’re no doubt going to walk away after reading my humble little column and cry, “My God! This man’s a genius! Why have we never thought of this before?!” OK… Maybe not… But it’s still a pretty good idea.

This month I want to pass on a suggestion about how you can make sure that you have the best e-commerce and customer service operation out there: Go shopping!

I’m sure that somewhere in your list of goals and desires for your e-commerce operation that you want your customers’ experience with your shop to be as good as it possibly can be. Not just better than anyone else, but good in an absolute, C.S. Lewis-ish, sense as well. After all, just because everyone else is horrible is no reason for you to be horrible too, right?

So how are we going to do this? We’re going to pick five to seven other e-commerce sites and take them for a test ride. I suggest that you choose two to three of the big e-tailers and catalog sites (i.e. Motorcycle Superstore, Knee Draggers, Bike Bandit, or Dennis Kirk) and then choose three or four dealer-run sites that also sell to the same markets that you do.

Your goal is to probe and test their systems. Their online systems, as well as their human, customer service systems. You need to create a standard testing process or protocol for how you’re going to do the test, and then apply that same protocol to each shopping experience. You’ll then grade or judge each retailer to not only see how well they are doing, but to come up with ideas for how you can be doing things better. Find something that’s horrible? Make sure your systems are set up to avoid it! Find something that’s amazing? Make sure your systems are set up to include it!

After all, if you don’t do this, how in the world will you ever know how good you have to be to be great? Trust me, your customers most likely shop with companies other than you, and they know who’s naughty and who’s nice. If you don’t have the same sense for where you stack up, based on first-hand experience, I’m willing to be that you’re not doing things as good as you think you are.

So what kind of things do we need to test? I’m going to offer up a few suggestions for things that you can do to see how satisfying, helpful, flexible, easy, etc. the experiences with each retailer is. Remember, one of your goals is to break their systems. You’re trying, through somewhat reasonable, real-world inspired actions, to become a nightmare customer. You want to be reasonable about it, but (based on years and years of first hand experience) I can guarantee that regardless of how wacky, far-out, or unreasonable you are during this test, that there are real customers out there that are worse than anything you can think up. If you’re new to this, you’ll have to trust me on this. If you’ve been around a while, you know exactly what I’m talking about.

First, pick two to three products that everyone carries so you can shop for the same stuff with each retailer. I suggest that one of the items you pick is a product that you know is hard to get, is frequently out of stock, has a long lead-time from the supplier, etc.

Now on to a few suggested tests (remember, these are just suggestions to get the ideas flowing… Come up with your own, relevant tests):

  • Go to each retailer and place your initial order. Use their site search to see how hard it is to find each product. can you find them by drilling into their categories? Are all of the attributes like color
  • Give them the wrong address: Give them, say…, your personal address with you order online, then call up a few hours later and have them switch the address to your shop’s address. Wait and see where the products end up.
  • Order a hard part that requires installation and once it arrives, call them and see how helpful they are at helping you install that part on your bike.
  • Order something like a pair of riding boots or riding gloves (or underwear… Seriously… It’s happened… Yes. Gross.), wear them and use them to the point where it’s obvious that they’ve been used, and then try to return them. Does the retailer give you a hard time or do they accept the return gracefully?
  • On those out of stock orders, call them up at least once a day to check status. Make note of how patient they are with your badgering. Also, make note if you get conflicting or otherwise funky promise dates. If every time you call up you get a different answer, or every time you call up you get told “two weeks”, regardless of how many weeks have passed, that usually indicates they are not really looking into it or telling you the truth.
  • After you place your order online, call them to change something with the order. The size… The color… Add an item… Take an item off… Then call back later that day and make another change. Then wait to see if you get what you’re expecting to receive. If you don’t get what your expecting after making the changes, call them up and find out what happened. Ask if they have a record of your calls to make those changes. If they do, they are using a good CRM system. If not, then they’re flying blind.
  • Try to return your order or part of your order. How well does it go? If they require something like a pre-approval for returns or an RMA #, try returning your stuff without one. Try returning your stuff without anything in the box other than the product. No invoice. No RMA. No note. The only identifying mark should be your address on the outside of the box. Call them up after you know it’s been delivered and ask about your return. Trust me… This one actually happens, and happens more than you would believe.

After you receive your order, find a product that you bought that has a cheaper price on another site. Even if it’s just a penny or two, and demand that they refund the difference or your going to return the entire order. See how they deal with that.
I think by now you get the idea… Come up with four to six tests like this that you’re going to apply equally to each retailer.

Now the moment of truth… Do all of the same tests to your own operation. Don’t be harder or easier on yourself that you were on the other guys. Be honest. Do all of the tests. Don’t assume that you’ll be fine and skip one or two. I’m willing to bet large sums of money that after you do this test you will be shocked by some of what you find out. About your competition of course, but more importantly, about yourself.

The thing to keep in mind throughout this entire exercise: All of the things you’re just now discovering… Your customers have known for a long, long time. Kind of scary isn’t it? If you actually do this test, I’d love to hear from you about some of your most interesting findings. If you’d like to share, please shoot me an email at todd@radicalpowersports.com and I’ll collect all of the pearls of wisdom as well as the horror stories and post them on my blog.

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Selling Online #37 : Summer Reading

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!

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