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.
Dealer Suggestion #2 - Offer scheduled maintenance plans
Offering a 50, 100 or 200-hour maintenance package, tiered by engine horsepower, can do two things for your dealership:
- It can flat rate a common service job. When billed as a package, it has “room” for your technician to pick up a small amount of efficiency and therefore shop margin dollars.
- It can serve as a “non-cash” bargaining tool to help close a difficult new equipment sale. The customer achieves their goal of getting you to “give a little,” AND it will cost your dealership significantly less in profitability than a discount on an equipment purchase. Also, it gets a customer back into your dealership when they come in for the service!
KPM Tip – Update your shop labor rate
Establishing the right labor rate for your dealership is important. The last time you went through that exercise, you probably changed the signage behind your counter and updated your business system, but did you remember to tell your suppliers?
KPM’s dealer website makes it easy to request a labor rate change. From the main menu on the KPM Dealer Website, choose the third item – Dealer Directory. Then, look for the fourth item from the bottom – Current Shop Labor Rates. Click on it and follow the directions to submit your request.
There are many more ways to improve your bottom line. KPM works hard every day to offer the best-in-class service with the brands your customers want. Helping our customers improve their business is an important part of what KPM strives to do every day.
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