When the economy turns sour and every customer counts, seeing a potential buyer walk out instead of riding off on a new motorcycle really hurts a dealer’s bottom line. Of course, some dealers where this happens a lot are quick to blame the economy when the problem is something they can fix – the dealer experience. J.D.Power and Associates, those guys that survey everyone, talked to over 3000 customers in September and October to see what they thought of the dealer and how it affected their decision to buy and yesterday released the results.
Why don’t they buy?
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Inability to test ride a bike.
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Desired motorcycle not available at dealership
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Perception of better service elsewhere
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Price
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Lack of low interest financing, incentives or rebates
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High maintenance costs
Though price is mentioned as a reason, customers often spend as much or more when they eventually buy than they would have for the rejected brand so it all goes back to the dealer experience.
None of this is, or should not be, news to anyone except for those dealers who treat customers poorly and wonder why they can’t sell a bike. Knowledgeable, well trained sales personnel and a dealership that can offer great service after the sale will convert many reluctant shoppers into buyers. It’s not always the economy, no matter how much each business having trouble would like to think so and in this current environment of bailouts for everyone, going back to the basics of customer service is often the most direct route to sales and business success.
J.D. Power press release follows:
A majority of new-motorcycle buyers reject a motorcycle brand because of dealer-related issues, according to the J.D. Power and Associates 2008 Motorcycle Escaped Shopper StudySM released today.
The inaugural study, which analyzes the reasons shoppers consider a particular motorcycle brand but ultimately purchase a different brand, finds that 51 percent of new-motorcycle shoppers cite dealer-related issues as a reason for rejecting a motorcycle brand. One of the primary dealer-related issues for rejecting a brand is the inability to test ride a bike, which was mentioned by one-fourth of shoppers as a reason for rejection, while 7 percent of shoppers indicate that the inability to test ride was the most influential reason for not purchasing a particular motorcycle brand. In addition, 18 percent of shoppers rejected a motorcycle because it was not available at the dealership, while the perception of being able to receive better service at another dealership is mentioned by 15 percent of shoppers as a reason for rejection.
“To avoid losing customers due to dealer-related issues, it’s important for dealers to better manage customer expectations,†said Tim Fox, research manager of the powersports practice at J.D. Power and Associates. “For example, making customers aware before they arrive at the dealership why they can or cannot test ride a particular motorcycle may help brands convert more shopper visits into sales. Since dealer-related issues can be controlled to a certain extent by dealerships and brands, focusing on meeting customer expectations in this regard can result in improved customer perception of a brand as well as lower rejection rates.â€
The study also finds that price and financing are cited most often as the reason for rejecting a motorcycle brand, with 57 percent of shoppers mentioning price-related issues as a reason for rejection. Overall, price is cited by 41 percent of shoppers as a reason for rejection, and 28 percent name price as the most influential reason for rejection. Similarly, 16 percent of shoppers mention the lack of low-interest financing, rebates or other incentives as a rejection reason, while 23 percent of shoppers mention high maintenance costs.
“It is important for dealers to understand that for many of these lost sales, there was a legitimate chance of closing the sale during the shopping process,†said Fox. “Eighty-four percent of shoppers indicate they ‘seriously’ considered the brand they rejected, and 41 percent indicate they ‘very seriously’ considered the brand. While price is often a major reason for rejection, 51 percent of shoppers end up spending the same or more on the brand they purchased compared with the brand they considered but rejected.â€
A vast majority of customers (81%) report having used the Internet to research motorcycles when shopping, 73 percent say they read magazine reviews, and 28 percent say they attended a trade show or motorcycle event, according to the study. Seventy-eight percent of motorcycle buyers indicated they contacted or visited a dealership for information before purchasing.
“More than three-fourths of customers report interacting with a dealership to find more information on a particular motorcycle, so manufacturers have a great opportunity to win or lose customers at this point in the shopping process,†said Fox.
The study, which also examines the impact of gas prices on motorcycle riding habits, finds that 29 percent of motorcycle riders report that they changed their driving habits during late September and early October 2008 when gas prices averaged $3.42 per gallon. Among those riders who changed their habits, 75 percent report using their motorcycle more often for commuting to work or school, and 41 percent say they use their motorcycle more often when driving around town. Additionally, 31 percent report doing less cruising, and 30 percent say they did less extended traveling.
The 2008 Motorcycle Escaped Shopper Study is based on responses from 3,022 new-motorcycle buyers. The study was fielded in September and October 2008.
Link: J.D. Power
Masonv45 says
Why do you think that motorcycle dealer’s have gotten the name motorcycle “stealers”. Overpriced parts and lack of good customer service.
Say what you will about HD, they KNOW how to treat customers..before and after the sale.
mobilus says
Points 1 and 2 are related, as often manufacturers do not provide demo models for dealers, and many dealers do not have the space for them anyway. If you miss that one demo day of the year to ride the bike you’re interested in, you’re out of luck.
I wouldn’t consider dropping five figures on a car without driving it first, but it’s often asked of customers when it comes to bikes. I understand why the disparity… an auto company may sell a million cars a year and a bike company might sell 10,000 units. The auto salesman can ride with you during the test drive, not so on a bike.
If every bike maker coordinated together with one place in the country, and:
A) built a test track
B) every maker had every model available for test rides
…it could become a sort of Deal’s Gap/Nurburgring mecca and attract all kinds of riders from all over. Maybe build two tracks and set up a riding school alongside the test area, offering beginner, intermediate and advanced courses. I’d spend the money to fly cross country if I knew I could spend two days riding every type of new bike imaginable. I might be suprised and end up buying something I never would have considered.
I know it’ll never happen, but one can dream.
Jesse says
I have to agree with Masonv45 the two primary reasons I chose to buy a Harley instead of one of the other cruiser models was the fact that Harley let me test ride the bike and the way the Harley people treated me from the second I walked in the door to this very day. Every time I go to the store the general manager of the store says hello and asks me how my Sportster is doing.
justpete says
Yes, most Harley shops do have great customer service, when you want a Harley or parts for your bike. But like a lot of people have said here and elsewhere. Try and buy a Buell at that same shop and see how and if their attitude and your experience changes.
lostinoz says
HD IMHO has THE WORST experience as far as service and parts goes. I NEVER have had to wait 3 weeks for parts that I installed myself before with any bike. I know of people that have more shop time than ride time with their bikes because of “back ordered parts.” Don’t believe me? Find a Buell or a V-rod rider, there’s a reason we order most of our parts online, and it’s not JUST because it’s cheaper. It’s because if we take it to the shop, we wont see it for a month because of “back ordered parts”– the same parts mind you we can buy on-line new or through ebay and have shipped to our door in 24 hours. We are also sick of being disrespected for not riding a “real bike.” I was told at a HD stealer’s Christmas party that I should buy a “real bike” by a salesman no less, when I was making a comment about parts availability. His attitude changed when I offered the BETTER option of buying a Suzuki M109 as my next bike because I can at least get parts and service quicker with no disrespect.
Personally, my experience with HD has made me choose a different path for the next bike. They won’t have to worry about me walking away from a sale, as I won’t consider them as an option.
Claymore says
I went to a BMW dealer, once. I guess I didn’t look rich enough because I couldn’t get the time of day out of them.
Note to dealers: Put down your coffee and show people the bikes! Take em for a ride – and I don’t mean just seeing what you can screw em for.
Narfar says
Just to tag on to what everyone else has said…
Biggest thing is lack of demos. I’ve made one purchase without being able to demo and will never do it again. So that pretty much excludes me from the Big 3 unless the dealer has a used bike of the same model. And that’s only if they are willing to use that bike as a demo.
Dealer experience is a big thing to, oddly enough it was on that one purchase that I did not demo that I had my worst dealer experience.
Motorcycle Dealers need to take a clue from the automotive world. As more and more people are buying bikes they need to step up their quality of service. A big problem with this is that in a lot of places there is a monopoly on particular brands. They have no incentive to get any better. Buy it here or go drive 80 miles, your choice.
The Ogre says
Masonv45 – I actually have the exact opposite experience with a Harley dealership. Back in ’97, I was looking to buy a sport touring bike. I visited a Harley/Buell dealership *four* times; and not once could I get anyone to talk to me (I was considering the Buell S3T). I had a different experience at a local Honda dealership – got a salesdroid, but wasn’t allowed to test ride the ST1100.
So, I bought a Triumph Trophy, after a lengthy test ride. I owned that bike for 7.5 years. When I replaced it with my current Multistrada, I did test ride it prior to buying.
I won’t ever buy a bike that I don’t test ride first, ever again.
kneeslider says
Just a quick note – please refrain from naming any specific dealership in your comments unless you’re pointing out a positive experience, say “a Harley dealer,” not “Joe’s Harley.” There are more appropriate channels to address specific customer service issues. Thanks.
jamesbowman says
I tried to by a Yamaha xt250 at a dealership about 5 minutes from my work and basically just wanted to make the deal happen and said such as soon as I arrived. I had only 45 minutes and said I want his bike and wanted to get it rolling before work and we could finish the deal on lunch. Left waiting for 35min I just left. A few days later I purchaced the same bike from a dealer 80 miles away and had great service.
I had also visited some other Harley dealerships looking for a sportster 883 and got treated like It was a privledge for me to be in their presence, naturally I never owned that sporster either.
Bad service which includes trying to hose me on the price makes me go else where not being able to test drive doesn’t help either. I also make it clear that out the door price is the number that I care to talk about.
Larry says
When I was deciding which Harley to buy, I rented 3 different models to test them out, to see which one I prefered. Once I made my decision, my Harley dealer applied all three rental fees toward the purchase price. To thier credit, I thought that was a fair deal. I don’t know if this is a “dealer” policy or a “Harley” policy.
Larry
doug says
I visited the local Harley dealer 4 times and never could get anyone to even show me a bike. the sad part was that on two occasions I was the only customer in the place. I now own another brand and look forward to the central Arizona Harley dealer going out of business.
I’m sure it will be any time now.
Gordo says
There is a lot of liability to letting someone test ride a bike. Just because someone comes in with their m-cert and a brand new copy of their MSF cert does not mean they know how to ride a motorcycle. Like wise, bikes require a level of coordination and control that a car does not. I used to work at a dealership and there were several times we sold motorcycles to people who wrecked their new bikes before they even got out of the parking lot.
Put yourself in the dealers shoes for a moment. Someone comes over to your house because they are thinking about buying your motorcycle. They say they will not buy anything they cannot test drive so you let them ride and he lays it down. The gentleman decides decides he does not want to purchase a wrecked bike and he also sues you because he is injured. Now you have a wrecked bike that you must fix or take a lower price for and a pending law suit. Does it matter if you saw his insurance and DL? No it does not. Bikes get sold everyday without a test ride. If you want to ride before you buy, go to a demo day. That is what they are there for.
Morpheous says
Using the economy as an excuse is ridiculous, it has never made more sense that right now to buy a motorcycle for transportation. But therein lies the problem, when you have created a market of RACE or CRUISE as the menu, there isnt much utility in either. The US motorcycle industry has made the error of marketing motorcycles as a liesure activity, instead of a lifestyle of transport. Most even frown on scooters (which they could be making a fortune with at this juncture) Dealers are hurting because they are not adaptable nor read the consumer needs properly. Plus alot of them are truly bad and have always made it through in spite of themselves. As for the test rides issue, IMO a dealer should not be selling to someone who is not MC liscensed to begin with , that is irresponsible. I would certainly think that they could get insurance to allow liscensed motorcyclists to test ride bikes. –
Thruxton-Texas says
Three years ago when I was shopping for a new bike, I was considering a HD Sportster 1200cc, at every dealer the staff acted as if they didn’t give a D**N whether I bought one or not! Maybe because I didn’t want to buy one of the more expensive models. I went to two Ducati dealerships to look at a 800cc Monster (I liked it better anyway); I got slightly better treatment but was told I would get my test ride after I bought the bike. I finally bought a Triumph Thruxton (I liked the look of this one best, and the price was more reasonable)after test riding a used one for sale by an individual. I acted too late and the bike was sold to someone else. So, I chose what I thought was the better of two Triumph dealers, and bought a new one. Repair service after the sale left a lot to be desired, and they were slow to get parts, especially if they knew that you were installing them yourself. Some days you can’t win for loosing.
The risk to the dealer concerning test rides could be eliminated or minimized if they just required a credit card (or cash) deposit along with a written agreement, this dicourages the “tire kickers”. A salesman could also ride along on another bike to make sure the potential buyer doesn’t do anything crazy. If dealers expect someone to cough up the price of a new bike they need to pay more attention to CUSTOMER SERVICE!
Gary says
I would like to say I had a VERY positive experience at Hall’s Ducati in Springfield Illinois. They met my wife and I almost as soon as we walked through the door, and if I would have brought my helmet,(they also offered one of theirs!!), I think that I could have rode every bike in the place! But it was our anniversary weekend and I promised a “quick” stop to look around. I do believe I will be buying a Ducati in the spring!!!
Jeff says
Note to a certain BMW dealer in MD . Tell your sales folks don’t judge a book by its cover . Go Buell !
B*A*M*F says
I’ve got a friend who owns a multi-line scooter dealership. He’s got at least one of every model prepped and ready to ride. A big part of the reason he chose his location was because it had a safe place to do test rides. He has doubled the size of his showroom and has continually seen his sales numbers climb.
I like his sales people pretty well, but they could probably do a better job with customer interaction. Even so, he has the inventory, and he has demos ready for any dry day of the year. It’s a model that works pretty well, even in a relatively small showroom (compared to the average multi-line powersports shop).
hoyt says
Gordo….no way should people be expected to wait until a demo day.
Dealers can’t come up with some legal note that must be signed by the test rider saying they are bound to fix any damage while on a test ride?
On a bright note, it helps if you ride to a dealer on an existing bike (try to borrow a friend’s if you are currently bike-less). My brother was able to test ride a used BMW for a weekend, while the dealer held his Heritage Softail. Done deal the following week.
Rare experience, but there are dealers that still have skills
Azzy says
What ever happened to “you broke it, you bought it”? Couple bike I sold, thats what I told the folks who wanted to try it out.
As fo buying, never even occured to look a a new bike. Too many extras on most newer bikes that I am not interested in. I like simple, and I like what i can fix in my shop at home.
Only bike I ever thought of getting new was a Concourse, but Its kindof hard to expect to drop 1/5th of what a house costs on a bike.
Ive been to a few HD dealerships, and the people there have been friendly during events, and have always answered a question when asked. Although when looking for parts for my Dad’s 85 Sporsters (he has had 2) often we would wait and wait for somoen to get to the counter, and most times told while looking for a part in a book (the 85 was somewhat uniqe) that he should buy a new model and get rid of that one.
Companies got to sell bikes, I know that, but count me out of that game. I will keep to buing from a few small repair shops and private owners in the used segment, until I have cash to buy new.
Erik says
When I bought my V-Strom a couple of years ago, I went into the local shop. They let me test ride a DL 1000 but didn’t have a 650 available and, here’s why I went elsewhere to buy it, they wouldn’t order one for me. I’m sorry, what? You want me too buy the 1000 so it helps clear your inventory rather than listening to what I wanted? See ya.
Mr. Tanshanomi says
There’s a very simple solution to the demo issue, one that we used many times at the Kawi-Honda dealer I used to work at: 24 hour buyback. Go ahead and buy it. If you don’t like it for whatever reason, bring it back tomorrow (undamaged, of course) and we’ll tear up the paperwork.
Better than a quick test ride for the customer, a whole lot less risk for the dealer.
Masonv45 says
Concerning Demo Rides…
I understand the liability issue, but often times demo rides are not available. HD has demo rides for Buell bikes once a year in my area – 500 miles away.
Concerning Showroom Inventory…
Every Honda dealer nearby didn’t have the VFR in their showroom. Apparently they didn’t even plan on getting one to show. And I only saw the ST in the showroom once at one dealer.
Only when a brand new Honda dealer opened across the state line, did they have a VFR. I met the owner at a local bike night and on the spot he offered a test ride for it next time I was in his dealership. Guess where I will be going for purchase and parts?
As with most businesses, the product will only get you so far. Customer service before and after the sale is what brings back repeat customers. Too bad the “good” dealers outnumber the “bad” dealers…
Wes Hill says
My main reason for me not purchasing is the lack of a test ride. Liability should not be an issue, that’s what insurance is for just like a car dealer.
I’ve done demo days and I came away more disgruntled. I was riding a KTM 990 Adventure and the guy freaked out when I stood up on the bike. WTF?
I will never give Honda any of my money. The power dealers will kill motorcycle shops. Enthusiasts like to go to bike shops, not car/mower/generator dealers that know nothing about bikes. Sure they may sell more scoots to girls but who cares. I can only imagine the level of service you’ll get when you take it in because the fork dampening feels off. Lots of blank stares….
todd says
Who pays for the test ride insurance, you or the dealer? If you were an insurance company would you insure test bikes? How much would that cost? If I can borrow the bike for a day and return it can I run it through 3 tank fulls at WFO while running a few errands?
If I walked in to buy a new bike (and even test rode it) would I want to buy it knowing it was a Demo and had a hundred miles on it? Would I want to pay full price even if it had 30 miles on it?
How about rental/test ride rates? If I was serious about a bike I would pay $50 to test ride it (less than 1/2 hour on a couple different bikes) but I wouldn’t pay if I was just kicking tires. If I wanted to take it longer I’d pay $150/day or so, typical rental costs. This could help dealers offset the depreciation and pay for the insurance. Just a thought.
-todd
stu says
with all due respect to those who are finding reasons why we shouldn’t automatically expect dealers to offer test rides (insurance cost, fear of liability etc), you’ve got it plain wrong.
Motorcycles are no different to cars, boats or any other powered vehicle. Any manufacturer and distributor who is happy to take five figures (and probably double that with lifetime parts and service) and markets their product based on its acceleration and dynamic abilities – but says you can’t see for yourself is treating you like a fool.
If they show you this little respect BEFORE you’ve spent any money with them can you imagine how they’ll be AFTERWARDS?
Matt says
Here’s my purchase experience from summer 2007.
Went to mega dealer and asked to test ride the 2008 KLR650. In order to ride, I had to have financing approved. I was pretty sure I would buy, so I went ahead with it.
Rode the bike, and decided to buy. Price was completely out of the range of what I was willing to pay. I kept saying $X,XXX is my absolute maximum, and they kept saying they kept asking me to understand. No matter how many times I said politely explained that I had already given them my absolute max, they kept making trips back and forth to the Asst. Mgr’s office, and coming back with different scenarios. Eventually Asst. Mgr comes out and talks to me, and starts the whole runaround again, between he and the real Manager. It took me almost 4 hours to not buy the bike.
I went to another dealer to check out the DL650,a nd he sent me out on a test ride within 2 minutes. I was in love. The price tag hanging on the bike listed all of the extra setup/shipping charges, and I haggled from there. He couldn’t match what I wanted and was happy to let me walk away. I thought about it awhile and bought the bike.
Two days later, salesman from dealership 1 calls me and tells me that he thinks he can work a deal for me. I told him that if they had a deal for me, they should have said so two days ago instead of jerking me around. I’ll never do business with them.
By letting people test ride and being straight forward about price negotiation, the dealership earned my respect. I didn’t even think about price shopping to other dealers after that. They have my loyalty now.
B*A*M*F says
Wes Hill,
I completely agree that powersports style shops aren’t what they are cracked up to be. I’ll disagree on them selling scooters to girls. Most of the powersports dealers I’ve been to don’t take women seriously when they walk in the door.
steve welte says
when you know the manufacture suggested retail price and they tell you the setup and delivery charges but have advertised $2500.00 off on any Big Twin but then give a price that is still $1000.00 of more over those figures you don’t need to walk away you want to RUN.
todd says
Steve, they wanted to sell my Dad a $3500 MSRP Ninja 250 for nearly $7000. We ran and never looked back. Money (and lack of honesty) has everything to do with why people don’t like dealerships.
-todd
DaveP. says
Peeve #1: Like the survey says, the vast majority of customers have done some research- online or through a magazine. If the salesperson tries to BS me about a bike I’m looking at, I’m out the door: if you’re gonna pee on my leg and tell me it’s raining when I’m looking to buy, how much of a runaround am I gonna get if I have to bring the bike back a week from now (when you already have my money) for a warrantee repair?
Peeve #2: I’m six feet tall and over 200 pounds; it’s darn hard to overlook me… except on the dealer’s floor of Certain Motorcycle Stores, where I’m pretty much invisible to manager and employees alike. If y’all aren’t interested in taking my money why that’s okay with me, another store somewhere else will be happy to…
Peeve #3: that bit about overpriced service and parts? DEAD ON. We aren’t talking gold plating, here.
Dave says
I can understand the liability. There is also liability with cars to be sure, but if someone say, lets the clutch all the way out and wipes out on the bike, the dealer could have a real problem on their hands. Not only for a person possibly getting injured, but its very easy to trash out a bike. I recently read about a guy who bought a harley, then as he was riding out of the parking lot where he bought it, bumped into a car, came off the bike and died. What if that had happened during a test ride? Yes you could in theory die test driving a car too, but the risks with motorcycles are so much higher I would understand it if a dealer wasn’t willing to allow test rides.
Roy says
I’m currently in the market for a Ducati Sport 1000S. I went to the local dealer who has a 2008 1000 Classic demo (he actually quoted the present price of a 2009 Sport 1000S for the plain jane demo), says he can get a 1000S in the color I want (I can imagine the price). Gee, guess what I’m not going to do? Buy a motorcycle from a rip off dealer or have him look at or service the bike I buy. I guess they just don’t need the business.