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Adam Smith’s Texas Harley-Davidson & Texoma Harley-Davidson

Liz Hochstedler
December 28, 2012
Filed under Power 15 Dealers

Fun factor leads to sales success

Dealer principal Adam Smith has been a businessman since his teens, opening his first dealership at the age of 23. Smith has since sold that business, but now operates Texoma Harley-Davidson, which he purchased in 2004, and Adam Smith’s Texas Harley-Davidson, which he bought from his father in January 2011. Smith credits his success to genuine care for his employees and customers.

“The way that our staff is trained is to focus on the experience the customer is having, so we are the most fun place to buy a motorcycle,” general manager Neil Noble said.

Unit sales
From the second customers walk into one of Adam Smith’s dealerships, the staff makes them comfortable. Sales staffers offer customers a drink, give them a tour of the store, offer a demo ride or a ride on the Jump Start machine and introduce them to other members of the staff.

“That process of making sure that everyone gets that experience every time is critical,” Noble explained.

In addition to selling new Harley-Davidsons, the dealerships also focuses on pre-owned.

“In the pre-owned world, the amount of inventory that we carry is really critical,” Noble said. “Between the two stores, we carry more than 200 pre-owned bikes.”

The stores’ pre-owned inventory is shared on both dealerships’ websites, and the staff transfers units between the stores, which are about an hour and a half drive apart, if a customer is interested in a specific unit.

F&I
New to the F&I department is a VIP maintenance plan, which offers buyers unlimited service for a set period of time, free bike rental while their unit is being serviced, free nitrogen tire fills and more.

“We’re not quite to that 50 percent penetration where half of our buyers get it, but we’re getting there,” Noble reported. “All the customers that have it are raving about it.”

The dealerships also have their own insurance agency to insure motorcycles and cars.

PG&A
To increase P&A sales, the dealerships place custom bikes on the floor to display some of the available options, which has been successful. The dealerships also boast strong MotorClothes departments.

“Our MotorClothes staff, they have more fun at work than anyone you’ll ever meet,” Noble raved. “They’re the friendliest, most outgoing people, and it shows in their sales.”

Service
Noble attributes the dealerships’ strong service departments to employing a significant number of master techs and encouraging training. The dealership has implemented a mentorship program, pairing new techs with veterans.

“I don’t think you can have too many highly-skilled techs in the service department,” Noble said.

To encourage customer interaction with the department, techs often perform complete rebuilds on the showroom floor on busy weekends.

Events/marketing
Events have always been a focal point of the Adam Smith’s experience.

“We have one or two big events a month, and every week we have something going on,” Noble said.

The goal is to keep current customers coming back and attract new buyers. Staff are encouraged to make sure customers are buying, or scheduling future service appointments while at the store.

Most of the events at Adam’s feature themes. In October, the dealership hosted a Pinups and Pompadours event, in which women had their hair and makeup done like pinup models, and a rockabilly band entertained.

“We’re in the motorcycle business; it’s hard work, and it’s serious business, but it’s funny, goofy and lighthearted. And if you can’t have fun in the Harley business, where can you have fun?” Noble said.

Inventory management
Even though both dealerships have pretty clean inventories, Noble said he’s working to bring more consistency to inventory management. The dealerships have regular cycle counts and an annual physical to track inventory.

“It’s really proactively looking at what sells and what doesn’t sell,” Noble said. “It just takes a lot of maintenance.”

What attracts employees to your dealership?
Adam Smith’s offers health and dental insurance, life and disability plans, IRA retirement plans with some matching and employee discounts, but the dealerships are more focused on keeping their employees happy.

“If you treat employees well and you treat customers well, then you keep them coming back,” Noble explained.


Location
: Bedford and Sherman, Texas
# of Locations: 2
Full-time employees: 90
Year founded: 2004
Principal/Owner: Adam Smith
OEM brands: Harley-Davidson

 

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