“Oh, yeah,” I chuckled to myself, “This is different.” That was my reaction as I perused Wilkins Harley-Davidson’s website, specifically paying attention to their “Buying Tips.” Trust me when I tell you it’s not for the faint of heart (Go ahead, you’re a brave soul, go to www.wilkinsharley.com, and then click “showroom” and “Buying Tips”).

We’d all like to think we’re up front and honest and do business the right way, and the good news is most motorcycle dealerships do. But John Lyon may have taken transparency to a whole new level. Here are a few suggestions for customers from the Wilkins family:
• Insist the dealer “write-up the deal” for you to take home and review.
• There are no grounds for you to pay administrative fees or documentation fees or restocking fees.
• Always have a couple of interest rates from local banks handy when you are visiting a dealership. Some dealers inflate the interest rate greatly … watch them closely.
• Ask for a copy of the [manufacturer’s] literature. Compare prices. Tell them to justify how they arrived at the price using the literature.
• Is the staff commissioned? You will need to know this to avoid being sold items you don’t want or need.
• Some dealers offer no payment and interest rate incentives that have a cost associated to the dealer, yet they pass the fee for the program on to the customer.
• Beware of trade-in offers that exceed a normal market value … because sometimes it’s just plain added into the new motorcycle sale.
• Some dealers use a dedicated staff to survey you, while others use full-time telemarketers from outside the states. Showing a customer you are interested in earning their business and being a nuisance are two different things.

Do We Have Your Attention Yet?

John Lyon, grandson of dealership founders, Barbara and the late Harry Wilkins, is the driving force behind this controversial, contrarian and refreshing approach to business. Notice I didn’t say new. What I would call the Wilkins approach is a return to good, old-fashioned family values. And that’s exactly how this family owned and operated dealership located in Barre, Vt., likes it.

Does this approach work? The late Howard Miller purchased 23 Harley-Davidson motorcycles from Wilkins. He’s not some Goldman Sachs executive reaping in huge bonuses. He was a regular, working man who thought carefully about when and where to spend his hard-earned dollars.

Not the Most, Just the Best

With just 13 full-time staff members selling 305 new and used motorcycles per year, you could never call Wilkins the biggest, and that’s fine with them. However, what you can call them is the best in New England. They are rated No. 1 in customer satisfaction (Harley-Davidson’s CSI 18 Month Quarterly Review) and 13th in the United States. Not too shabby for this little 63-year-old Harley-Davidson dealership.

And it appears there is a correlation between customer satisfaction and profitability. Using Ruthless Data System numbers, Lyon’s dealership’s major unit gross profit is actually up to 20.2 percent over 17 percent last year, reflecting an 18 percent improvement over last year.

In terms of accessory and merchandise invoices, Wilkins is up as well: 10,009 in 2010 versus 9,511 in 2009; with higher net sales per ticket ($82.96 versus $79.87) and higher gross profit percentages (38.1 percent versus 34.6 percent). They’ve also dramatically reduced discounts given on counter sales by 46.4 percent over last year.

Does this mean Wilkins is perfect? Not by a long shot. Their finance penetration is approaching average performance (currently 43 percent), but the finance and insurance profitability is severely lacking at $194.48 per vehicle retailed.

“Realizing that we have performed poorly in the finance and insurance arena,” Lyon says, “we recently hired a seasoned business manager to assist us in developing that department.”

Wilkins’ service business, on the other hand, is booming. His Ruthless Data Report (current as of the moment I’m writing this article) shows his year-over-year work order count to be 2,599 versus last year’s 2,348, reflecting a 10.7 percent increase. Hours per ticket are up 17.1 percent, and their average work or accessory gross profit is up 23 percent.

“I firmly believe we have one of the top service departments in New England,” adds Lyon. “In the early years, my grandfather and grandmother both worked on motorcycles in one way or another.  Service is the building blocks for any dealership and should never be an afterthought. At Wilkins, I think our numbers are always good in that area for that very reason.”

Non-Negotiable Prices

The Wilkins crew makes it very clear price isn’t negotiable.  They also make it clear that price doesn’t fluctuate based on the time of the year or the availability of the bike.

While working with a first-time Harley-Davidson customer, Lyon spent several hours answering questions and helping him find the exact right bike. Then Lyon handed him a bill of sale and told him to go shop! The customer was shocked.  He asked: Aren’t you going to try to get me to take something home now? Lyon smiled and told him he’d be here when he’s ready. He handed the customer his business card with his cell phone number on the back and sent him home.

Closed on Mondays, John got a call at home on his cell phone. It was his first-time customer who asked John to take his credit card number over the phone as a deposit. “I’ll take you at your word,” John replied.  The customer insisted. John again said, “Come to see me Tuesday, and I’ll take your money then.” At that point, the fired up prospective buyer demanded John take his card number immediately.

The reason for his urgency?  The customer was so dissatisfied with his sales experience elsewhere he insisted Lyon seal the deal now so that he could go announce to the rabid pack of sales wolves at the other place that he was buying somewhere else. That first-time Harley-Davidson purchaser is now a repeat customer.  

“The customers start to train each other that we don’t do the whole back-and-forth (price) thing on our bikes,” Lyon says. “What’s important to us is making sure that our customers get the right bike, and we build an entirely enjoyable customer experience.”  

Building a Customer-Centric Culture One Employee at a Time

In this age of downsizing, right sizing and outright firing, John Lyon sticks to a policy his grandfather Harry Wilkins started some 63 years ago: No layoffs. Lyon proudly mentions that never in their history have they laid anyone off. And if it’s up to Lyon (and it is), they won’t.

“People need to know they have a job,” he says. “That way they can concentrate about finding and keeping customers, not whether they should be looking for a job somewhere else.”

And in an environment where many motorcycle dealerships are cutting staff, Wilkins is just about to add another full-time employee, swelling their ranks to a lucky 13. But Lyon doesn’t make that decision lightly and seeks to hire almost entirely on personality.

Different Perspectives

Consider this full disclosure. I used that provocative headline, “How Honest Are You?” to get you to read this article. Here’s why: I like John Lyon. I like Wilkins Harley-Davidson. I just flat out like old-time, family dealerships. Don’t misunderstand me — there a lot to like about new stores, and at the same time, nothing connotes the legacy of Harley-Davidson for me like a third-generation Harley-Davidson store (I worked at one). John Lyon and I have spoken many times, he’s a part of our Ruthless Data System group, and he and I have traded ideas for years.

I’m also a fan of paying on commission. My position is a salesperson’s earning potential shouldn’t be constrained. I believe you can balance the best interests of your customer and your commission to create success. John doesn’t think that compensating on commission can be a part of a customer service-oriented store.

I believe, as does John, that you can and should deliver outstanding value and earn a fair profit.

I believe that finance and insurance can and should be big parts of every dealership’s offering. As we’ve written about previously, this is one area where many dealers land themselves in trouble. At the same time, I’m not sure I would send my customers to other lenders shopping for interest rates. In the profit equation of F&I, mark-up above the buy rate is the one variable of diminishing customer value (products offer more). If a customer asks me why they should finance at the dealership versus finance at their bank or credit union for a lower rate, I’ll make sure they know that rate is just one consideration and for many it’s not the most important (term, right of offset, cross-collateralization and acceleration clauses are others).

The reason I wanted to write this article was not to disparage others’ business practices; rather, I wanted to show you one person who does things a little differently. It’s good for all of us, now and again, to reflect, remind and perhaps reset. No one dealer does everything right or everything wrong.
I think John Lyon’s idea to post his “Buyers Tips” is instructive. Take from it what you will. John Lyon and the rest of the team at Wilkins Harley-Davidson should be terrifically proud of their efforts. For a small dealer, they sure do have some big ideas — primarily, an unwavering commitment to their customers and their employees, demonstrated through action and not just rhetoric. Although I never met Harry Wilkins, I bet he’s proud of his grandson’s commitment to the Wilkins’ legacy. I know I am.

An award-winning author, top-rated trainer and founder of Peak Dealership Performance, Mark Rodgers holds a master’s degree in adult education and the National Speakers Association Certified Speaking Professional designation — only 500 people in the world have this coveted recognition. Contact [email protected] to improve your performance.