According to the Motorcycle & Moped Industry Council’s 2007 Motorcycle, Off-Road Motorcycle, Scooter, MUV & ATV Outlet Profile Survey, of the $4,410,258,791 earned by Canada’s 1,385 retail powersport outlets in that year, $686,667 came from parts, accessories, and riding apparel, and $615,701 was earned from sales of used motorcycles, off-road motorcycles, MUVs, scooters, and ATVs. Canadians may not be rushing out to drop thousands on a new vehicle, but they are still looking to have some fun. Providing plenty of opportunity for dealers to prop up their parts and service departments, reviving an old ride is a road more consumers are taking as they head into spring with economics on their minds and adventure in their hearts.

Martin McCallum, parts and service manager at the Cat Shack in Turo, NS says the economic connection between recession and parts and service is one with potential. “When vehicle sales are down, people are fixing their old gear rather than buying new,” he says. “Rather than trading in and spending $8-9 thousand, they are spending a thousand to repair their old stuff. And in those times, parts and service are critical to the flow of the business.”

Although being an Arctic Cat dealer in the dead of winter in Nova Scotia with six feet of snow on the ground has obvious inherent advantages, McCallum says it’s not always enough to be in the right place during the right season.

“People want a dealer that is pretty well going to have an item right now or that can have it shipped right now. Unless they don’t have a plan for the coming weekend, people will call every dealer in the area for a part if they have to. If there’s snow on the ground today, they want the part today. It’s a short season.”

The fact that most dealers can’t stock every available part, but should have the basics covered is just common sense, but maximizing parts sales means going a little further. The art of the upsell has never been more important as consumers guard their cash, holding out for the best value possible. And laying out complementary items isn’t enough: consumers respond best to a clear, genuine presentation of the value of a product, including all the ways it will make their lives easier – and more fun. This means keeping a close eye on aftermarket accessories that go well with the most commonly ordered items, and some of the rarities that at least some regular customers are always looking for. In fact, it’s customers needing rare parts who are accustomed to having to wait that most appreciate having these items on hand whenever possible. When it isn’t possible to stock a rare part, sometimes letting a customer know the part is on the way can be enough to keep them in your store.

“When people call me for a rare part, something I sell one or two of a year, I make it seem like we have those on the way and shipping in three more days, when really I’m going to order it today and it will be here in three days,” says McCallum, explaining that this tactic is as much about making the customer feel good as it is about retaining the sale. “I make it seem like it’s a common part and we usually have lots, because then the customer doesn’t feel like a bother. We try to make people feel good when they do call, otherwise they are going to call someone else.”

Keeping careful note of the customers who do need rare parts can give dealers an advantage around maintenance season if they can anticipate what they might need to have, or get, in stock. Operating in a smaller locale is a bonus too, as enthusiasts tend to ride in groups and like to tell stories.

“We talk to develop relationships and to know what everyone is doing and who they travel with,” says McCallum. “We’ll be talking to one guy, who will tell us about his buddy who needs a starter. We can go the extra mile and get it in because we know he’ll probably be calling. It’s always interesting to know who needs what before they do,” he laughs.

There’s a lot to be said for adding value through tried and tested incentive, rewards, and preferred customer programs. These don’t have to be costly either; point systems, customeronly sales, and free manufacturer samples can go a long way toward the extra mile.

“Going the extra mile” is an understatement for McCallum who makes sure the regular “die hards” can reach him outside of business hours so a weekend-long trip doesn’t have to come to an end if a machine needs repair. This is just what these times call for, he explains. “People are demanding spectacular service and spectacular treatment, and their business is worth a lot.”

Though he remains committed to accessibility, McCallum warns against giving discounts. “You’re making your margin when times are good, and everyone wants a discount. My answer is, ‘I have it now. If you want to wait and shop on line, I am wondering where the value in your 15 percent off goes if there is a mistake on your order.’”

Despite the drop in the Canadian dollar, there still exists a boost in online cross-border shopping for aftermarket parts and accessories, but McCallum says this small market share isn’t affecting his business.

“I’m serving customers with inventory on hand and I’m keeping a tight inventory, but still having what people need. You really have to communicate and know who you’re dealing with, and it’s a relationship thing. If you don’t have relationships, you can have 40 thousand parts in your inventory and still not have much selection,” he says.

Dale Erickson, owner of Harbour City Mororsports and VI Honda in Nanaimo, BC, says relationships begin with knowledgeable staff. Under the Honda Powerhouse model, VI Honda’s staff is “immersed in training,” he says, explaining that Honda offers weekly online courses covering all aspects of building a successful dealership from product knowledge to systems and sales. With a mix of mandatory and optional learning materials available, staff have access to information about operations in all departments.

“Some courses are department-specific and some aren’t,” says Erickson,” but every course is open to anyone. So the parts guy might get dusted with a bit of sales information or information from any part of the business. This encourages the staff and is a good team-building tool.”

With riding and vacation season approaching, sales are almost exclusively customers buying for their own machines, and Erickson is optimistic that powersport stores can offer those willing to drop thousands on a vacation a tangible, year-long alternative.

Also part of the impending season is a program VI Honda is doing with Honda Canada that ensures any part ordered before 2:30 pm will be at the dealership before the doors open the next day. “It’s great,” says Erickson. “People order their parts at lunch time and get a call before breakfast next day.”

Staff in the busy parts department at Harbour City Motorsports is often asked by customers about discounts, but Erickson agrees with McCallum that it’s better to upsell the value than lower the price.

“I always ask my staff, ‘When people want a discount, are they actually asking for discount or are they asking to make sure what they are buying is quality?’,” says Erickson. “So often people fail to realize that what they have is probably the best quality product on the market, but they are quick to give a discount rather than sell the value. If what you are selling has value in it you’ll sell it.”

An alternative way to provide monetary incentive without dropping the price is letting customers know about upcoming sales or promotions. They might divert their purchase to a later day when the sale is on, but chances are they’ll be certain to buy the item and probably some additional items too. No matter how you approach it, a prime component of a successful business is the ability to adapt to changing economics. What better way to support customers in their quests for frugal fun that to boost sales and relationships in the parts and service departments? CPT