PSB 123s: How to increase PG&A profit
1. Bundle common accessories.
“Put together discounted packages of accessories to make buying more convenient,” said sales trainer and Profit Xcelerator presenter Don Cooper. “You can create different types of bundles, for example, a ‘Safety Package,’ ‘Maintenance Bundle,’ etc. You can even create several levels of packages, for example, Basic, Enhanced and Premium, or Silver, Gold and Platinum. Customers save time and money, while you sell accessories you might not have separately.”
2. Be careful with the “playing it safe” strategy.
“Stocking too little products, too low cost products, or plain products can cost you lost sales,” said Tucker Rocky’s Jennifer Robison, also a ProfitX presenter. “Too many dealers today have this idea that a low price point plain black jacket, for example, will sell. Not true. Although every store should offer a plain, moderately priced riding jacket, it should be accompanied by many other types of jackets of different colors, features, styles and prices. Customers today want choices; otherwise why should they come shop you?”
3. Always keep racks and displays full.
Product should be pulled forward, clean and with the labels facing the customer, said Doug Riipinen of Western Power Sports. “No one buys from an empty or dirty display rack.”
4. Calculate and understand dollars per square foot.
“It is crucial that a dealer studies and understands how much revenue each square foot of their retail store should generate in order to meet the goals of their business and remain profitable,” Parts Unlimited’s Lou Lopez explained. “If a particular brand or display is taking up a sizable portion of real estate in a dealership, it is important that it generate enough revenue to justify the size and location. If not, it should be replaced with a different brand or display that will meet the goals set by the dealership.”
5. Highlight new accessories on social media.
“Post photos and descriptions of your latest accessories on Facebook and Twitter for your fans to see. Add reviews from your staff as well,” Cooper advised.
6. Plan to have an in-store marketing strategy.
“To make the most profit, pick a brand and product to get behind, launch a great in-store marketing message, and after the 90-day ‘new or full retail’ timeline, be prepared for a sale or inventory reduction because there will always be something new for the next season,” Robison said.
7. Prepare for impulse buys.
“Dealers should always put the highest gross profit items nearest the checkout and should always be stocked full,” Riipinen explained.
8. Promote your dealership within your greeting.
Add a line to your greeting promoting a new product, service, event, or sale that is currently happening or scheduled to happen at the dealership, Lopez says. “With staff being reduced, this minor change will not only make customers feel welcome, but also inform them of what is going on at the dealership. Something as simple as a greeting goes a long way in recognizing there is someone in your retail store who might want to spend some money.”
9. Display accessories near the vehicles.
“Clothing retailers display ties, shirts and suits together because it causes buyers to want all three. Position a mannequin on or near a vehicle, decked out in a helmet, jacket, gloves, etc.,” Cooper said.
10. Continue your PG&A education.
A few seminars during Profit Xcelerator, Powersports Business’ conference and expo, will show dealers how to increase their PG&A profits, including “Your Retail Reality Check,” presented by Robison, “Successful P&A Inventory Management” by Steve Jones of Gart Sutton & Associates, and others. ProfitX runs Sept. 25-27 at the Red Rock Casino Resort and Spa in Las Vegas. Register at www.powersportsbusiness.com/profitx.