I'm sure you've heard the saying "Time is money." An overused cliche yes, but nonetheless its underlying meaning will always hold true. So, I ask you this: Is your outdoor power equipment dealership running efficiently, or is there room for improvement? With the limited resources that small- and medium-sized businesses operate on, efficiency becomes even more critical to maintaining and growing your profits. Here are three technologies that will help you become a more profitable and efficient outdoor power equipment dealership.
As a dealer, you likely devote a fair amount of time to inventory management, right? Parts to keep your customers going, the optimal level, make-up and display of equipment to maximize your sales? Of course! But what about the other inventory you purchase with each payroll? That’s right, shop labor inventory! And it already has an established retail price, your posted shop labor rate.
David Dollard recently wrote about a few great tips to help dealers increase their profitability in his blog post. Here are a few suggestions on how to protect and possibly increase your profit margins.
Here are two suggestions from KPM dealers that may work for your dealership – and a tip from KPM.
Dealer Suggestion #1 - Use retail financing plans and the associated monthly payment
By marking the equipment you have on your floor with a monthly payment, it helps a potential customer “budget” the purchase. Be sure to include the appropriate sales tax and then use the monthly payment factor provided by the retail finance company.
Some equipment manufacturers have formatted hang tags that are customizable and printable. If you can, try not to handwrite them. Research shows customers are less likely to haggle over price when the tag is printed.