Powersports Equity: What it is and How to Explain it to Customers
EQUITY IS IMPORTANT!
Equity is important in the world of Powersports sales. After all, it’s the key element that helps you value your trades and give customers the best deals on their new purchases. Understanding how Powersports equity works, is going to make a big difference in how successful you are with trades. This applies to what your sales team does in bringing in the best units while also giving customers the deals that they deserve. In Powersports, equity is the same as it is for anything else: a percentage of ownership. Keep reading to learn more.
If Powersports equity is a percentage of the ownership that a customer has in their current unit, let’s say for example that the unit is worth $10,000 and they only owe $2,000. That means they would have 80% equity, which is money that they can essentially use towards the purchase of their next unit. It's not really that complicated, and it’s a helpful way to show people that they have more money than they think when they are trying to invest in a new Powersports toy.
The great thing about taking trades is that you can get whatever you want from them, and you will get to pick and choose which units you keep. Of course, that means that you need to understand how to value trades and determine equity. Fortunately, there are a lot of tools and technology out there today that makes it easy for you to get the right value and still give customers a good deal.
TALKING TO CUSTOMERS ABOUT TRADES
There are generally two types of salespeople: those who avoid talking about trades and equity. Along with those who jump in too soon. Causing customers to be overwhelmed before they’ve even decided whether or not there is anything that they like in the dealership.
You need to find the balance and train your team to work the trade discussion into the customer buying journey as naturally as possible. In some cases, the customer might come to you first, which could save a lot of the song and dance. However, you should still make sure that your team is trained to handle the discussion, just in case customers aren’t willing to take the reins.
When you're trying to get a good trade, you can’t let the customer know that it’s as good as it is. The best thing that you can do is to be casual, but make sure that you have something to offer them that will get them to complete the deal. If you let people know how badly you want their trades, they’re going to demand more money for them and that will cut into your profits.
THE BOTTOM LINE
Trades can work to your advantage and to the advantage of the customer. You just have to take the time to learn about them and learn how to discuss Powersports equity with customers so that everyone gets the outcome that they deserve in your Powersports deals.
Check out our Thought Leadership page for more resourceful information about Powersports SEO Data & more topics HERE