Knowledge is money

In a time where the industry is suffering we are encouraged to re-examine the way business is conducted in order find a little more profit on top of our bottom line. No longer is it how can we squeeze every last dollar out of our customer but it's become how can we squeeze every last amount of profit out of our expenses. The dealers that are surviving and "thriving" are the ones that have scrutinized where ever penny has gone and which of those cents hold the largest returns. "We aren't going to sell our way out of this one" as said by a KTM executive and he's right.

It's September 2009, do you know where your bottom line is? Lets face it, Summer has run out of steam and we are facing a long slow winter. I hope you have a real understanding of where your bottom dollar is. Without knowing exactly where you stand, where your profits are and where you've got some work to do you're just running in the dark hoping that your business plan will pull you through one of the toughest times your dealership may ever weather, or succumb to. If you don't know what it costs to open your doors every day, down to the savings you'll have if one of your hourly employees is cut back a day of the week then you're off to a bad start. Sit down with your accountant, spouse or calculator and educate yourself. It won't be fun but it needs to be done now.

You do know what is going to carry you through the winter don't you? Optimize your efforts in this area, expound your cost effective marketing strategies. If it comes down to it, make goofy youtube videos of employees cleaning bikes and talking about features and benefits with strong undertones of how to contact your dealership. This is FREE Over 2 million views - Entertainment is king.

So many dealers are struggling to make a buck in order to cover floor plan all while concentrating on liquidating in volume. Listen if you want to operate on shoestring margins and continue to saturate the market then go-ahead. I understand we've got to move old inventory that's collecting dust and interest but as you take hits while you're operating on such thin margins that bottom line will catch up to you and when it does times are going to be really tough. Short term is a must but you've got to have your sights set on long term as well. What are you going to do now in order to provide yourself with a cushion in February?

Get your black and white straight, numbers are powerful be sure they are working for you, not against you. Don't forget this industry rewards creativity and honesty. Take a deep breath, put your "out side of the box" cap on and get to work. We've all got a long row to hoe.