“Paycheck friendly” is a new concept to me too. Customers aren’t buying many new units, or doing big accessory remodels on their bikes, or buying big ticket apparel packages either—the cash isn’t there. Those days are gone. Now, we spend in drips and drabs…instead of chunks and lumps. So, Mr. Dealer, it’s probably time to change expectations of your customers’ new spending habits and thus, your selling habits and product offerings. Riders lucky enough to still have a job or some form of regular income now typically budget smaller amounts of “fun money” aside from each paycheck…as they arrive bi-weekly.
If we can’t buy the parts or accessories we (really) want on $100 to $200 every two weeks, then we can save it up for a few weeks in a cookie jar until we can afford it. That flat black Vance & Hines pipe is dancing in my dreams now, but I also want the contrast cut black wheels to match it…and the black air filter too. I can’t afford it all at once, so would you, Mr. Dealer, help me plan my dreambike 6 to 8 weeks out in 2 week increments? Help me get there g-r-a-d-u-a-l-l-y rather than in one felled swoop—you know…”paycheck friendly.”
Interestingly, Sears recently brought back their Layaway Plans–an eight week pre-pay program you can implement on-line. Why? It’s an effort to help customers buy more sequentially by forcing the customer to save for what he wants. Simple. Pay as you go. It sounds old fashioned. It is. And it works.
I am NOT suggesting you do layaway unless you want to (Google “Sears Layaway”). I am suggesting you help your customers better visualize their end goal and help them get there. Paint the picture…because your customers have no imagination until they see it themselves. Arrange and group your products either from lowest cost to highest cost or package them into modular kits that permit your customer to build from paycheck to paycheck. Here are a couple of 4 pay-period, 8 week build concepts:
1st Buy______2 Weeks 4 Weeks 6 Weeks____8 Weeks
Performance Kits: air cleaner exh. pipe FI mapping ignition install
Apparel Kits: helmet gloves jacket pants boots
Wheel Sets rims brake discs calipers tires install
Custom Package seat windshield chrome chrome install
How about calling this your: “8 Week Build Plan” or “Customize Your Motorcycle in 8 Weeks.” I like “Pay as You Personalize?” There is no financial risk on your end—you are only helping your customers see more clearly through the fog of personal finance to a machine they would really like. Look at yourself as an interior designer who provides the “after” picture and an associated budget. The customer still pays as the project progresses, but at least they are more confident in the outcome while the payments are stretched out.
Are you the naysayer in the back of the room? You think this will only aid customers in changing their mind on where to buy their bolt-on or apparel products…and they’ll go to the internet instead? So what would you do to prevent that? If it’s a mechanical installation, be sure to incentivize the labor rate…at the end of the 8 week period. If it’s not going to be ultimately installed in your service department, then here is what you can do….
Product or service, provide a “cumulative credit”…which accrues to the project at week 8. In the case of the entire apparel outfit on the last week, the earned credit could be worth enough to buy an extra set of winter gloves on top of the summer ones bought in week 2. Notice “credit” is NOT a “discount.” Discounting is the easy way out and cuts your GP terribly. If you have to give away something these days, it should NOT be retail dollars—it should be wholesale dollars. Use the apparel credit above as an example. The winter gloves sell for $100 MSRP. If you gave your customer a “discount” of $100 off of all the accumulated 4 apparel items in the 8th week goal, he walked out happy and with $100 of (retail) beer money in his pocket. If you offer the $100 “credit” instead you only let $58 walk out the door (your cost on the additional “free” gloves). The customer, however, should be happier with the extra gloves because his riding experience will be better.
Build loyalty, return visits and happier riders by helping us imagine what we can by not just today, but cumulatively over the next few months. Stair-stepping it out for us and enticing us with a reward credit at the end…makes your dealership more fun to shop in and “paycheck friendly” too. Thanks, bud.
