Motorcycles & ATV Dealership
Industry Overview
Consumer demand for motorcycles and ATVs is strong across the country. The personal watercraft market is down from previous high levels, particularly in areas with national parks due to regulations limiting use on park waterways. The high-end and cruiser models of all the vehicles are selling particularly well. Current economic concerns in some areas are not affecting overall sales.
Company Perspective
Sales at Suzuki of Mobile are matching those of the general sports vehicle industry. The dealership typically sells about 300 motorcycles a year and the vast majority are used for recreational riding. Benefiting Suzuki of Mobile is its southern location where motorcycles and ATV riding is practical year round. In addition, there are no nearby national parks with limits on personal watercraft use, affecting their sales. Many sales come from the Baby Boomer generation. These people have money and want to experience the excitement of riding, but also want a higher level comfort and control in a vehicle. Most of these customers spend between $6,000 to $16,000 for a motorcycle, ATV or personal watercraft.
Company Issues / Concerns
During the past six years, business quadrupled in size. The dealership began to experience some of the problems success brings - increased sales led to increased customer needs. There were both personal and coordination issues between the Front of the business (sales) and the Shop (parts and service). The owners began to see an "us" vs. "them" attitude developing and wanted expert assistance in handling these concerns before they became serious problems.
Solutions
The consultants from the George S. May International Company implemented several specific activities at the dealership to help solve the brewing concerns. They took action to open the lines of communications between the front of the business and the shop. The sales manager and service manager now meet regularly to discuss issues. An employee incentive program was started. Employee benefits and procedures to use them were changed to make them more relevant for the people working at the dealership.
"It took about a week to see a change in attitude among the employees," said Phillip Hall, owner of Suzuki of Mobile. "With the changes we are now seeing, I'm expecting a complete return on our investment with May International before the end of the year."
"Before we were like most dealerships, taking advantage of what the market was providing us," Mr. Hall said. "We are now more efficient, making more money and providing better service for customers because our employees are working together better."
