OUTSPOKIN’ Leading Bicycle Retail to Excellence JANUARY 2010
PROGRESSIVE DEALERS FOCUS ON IMPROVEMENT “Profitability Project” retailers meet to share best practices. NBDA-member bicycle dealers from across the country met November 2-4 in Portland, Oregon, to analyze each others’ businesses, critique financial and performance numbers, and visit local bike stores— all with the goal of improving their businesses. These were the latest meetings of the NBDA’s Profitability Project, a program designed to harness the collective experience and expertise of some of the best bicycle retailers in the country, for the benefit of each group member and the industry as a whole. The first P2 group now has 14 active NBDA-member bicycle retailers. The second (P2-2) now has nine members (with opportunities for more to join. See sidebar.) Facilitated by Dan Mann and Kristin Sowa of The Mann Group, and operated under the auspices of the NBDA, the heart of the program is the collection and sharing of “Key Performance Indicators” each month. Those key numbers (as prioritized by the group members themselves) are compiled, distributed confidentially and then analyzed. This process allows each member to compare his or her numbers to the group’s averages on a monthly, quarterly or annual basis. These numbers then form the foundation for the conversations and planning that occur on an ongoing basis within the P2 group. Modeled after “20 Groups” in other industries, the focus of P2 is to develop measureable and useful bicycle retail numbers, and then use the power of the group to make something great happen for each group member.
IN OUTSPOKIN’ THIS ISSUE: Best Practices ..........................................................................2 Dealer to Dealer......................................................................6 Take Control ............................................................................8 Store Review Checklist ..........................................................9 New Members ......................................................................10 Beyond “I’m Just Looking” ..................................................11 Last Word ................................................................................11 Classifieds ..............................................................................12
and lose share. Some move into new product areas. Others focus on improving employee performance, such as by measuring salesperson productivity (even per hour) and training to achieve improved numbers. • How Many Dollars Do You Generate Per Square Foot? Which department needs higher productivity per square foot? Do some departments lend themselves more easily to improvement than others? The group discussed managing their floor plans and inventory mixes to improve the average dollars per square foot. • In a business with a short selling season, how do you manage staffing levels? In one case the retailer needs to lay off some staff, but makes that decision based on measureable performance. If you track sales by employee accurately, it becomes apparent who the good performers are. Can you drive that number higher? If so, how? Should you? “If you don’t measure, all evaluation is mere opinion.” • How To Keep Employees Busy in Slow Times? Role-play and learn how to overcome objections and serve customers better. Keep a work list for each day that must be completed. (It gives something tangible and measureable for staff to attain in a given day.) • What Are Some Typical Obstacles to Profitability? Is it the staff’s core belief that things are overpriced and should be discounted? Is it the customer’s core belief that everything should be on sale? Or is it lack of management mindset toward improvement? If you want to improve your business, the NBDA’s Profitability Project is worth your consideration.
Face to face At the heart of the project are face-to-face meetings (two days in length) held in the city of a group member, including store visits and critiques, aimed at helping the host retailer see his or her business through new eyes. Members have reported how valuable it has been to have feedback from other successful professional bicycle retailers. The meetings allow you to go beyond seminars or outside consultants and move into a friendly and supportive environment with your peers to decide both what you want to accomplish in your business, and how you are going to get there. Here are some of the issues the Profitability Project has addressed: • How Are Sales? Dealers were able to easily compare their own sales numbers to the average, discuss what was driving the numbers and consider strategies for responding. Some may choose to cut prices and gain market share. Some may choose to hold prices
WANT TO JOIN A P2 GROUP? There are openings to join the second Profitability Project group. To qualify, you must be an NBDA-member bicycle dealer in a market that doesn’t compete with existing members, be willing and able to provide the Key Performance Indicator numbers on a timely basis and participate actively in the group. A fee is charged. For more information on the NBDA Profitability Project, go to www.nbda.com/goto/p2. Or, send an e-mail to Dan Mann (dmann@manngroup.net) to set up time for a conversation.