Categories
Business Growth

Tired of Chasing Inventory?

While monthly sales numbers have certainly brought good news to retail powersports dealers, there is a flip side to the story. Recently polled dealers who attended a Powersports Business Kenect event shared growing concern about new unit inventory, with 78 percent of respondents noting they were very or extremely concerned. In Q1, 85 percent of dealers said their inventory was too low. With 72 percent of dealers reporting double-digit sales growth in Q1, it appears that the 2021 will be a year spent scrounging for inventory.

We all know that the best option to tackle the inventory shortage is to target the trade-in, but how do you convince people to trade in with you?  While stimulus money is easing near-term financial worries for many consumers, much of that money will be targeted toward paying off debt, delinquent rent, and other expenses incurred due to lost employment income. Educate the customer that their trade-in vehicle has value which can be applied toward their next powersports purchase. Contact recent customers and discuss their current situation. Are they using their motorcycle or ATV, or are they contemplating a new side-by-side? Capture details on the trade-in remotely and provide trade-in options that get them closer to the sale.

Categories
Recruiting

Good Talent = Revenue

Good news! The retail powersports market continues on a roll! According to composite data from more than 1,650 dealerships in the US using CDK Lightspeed DMS, sales increased 23.9 percent in February 2021as compared to February 2020. Early results from the Q1 2021 Powersports Business/BMO Capital Markets Dealer Survey reflected that more than half of all respondents said business was trending above plan.

In general, a positive sentiment has also spread across several economic indicators. According to the U.S. Bureau of Labor Statistics, unemployment rates in each of the large metropolitan areas dipped below 10 percent in February. The stimulus at the end of 2020 ($900B) and the relief package signed in early March ($1.9T) equate to nearly 14 percent of US GDP.

However, there are a couple of wrinkles which could put a damper on that optimism. Inventory continues to be an issue, both in terms of units and parts for all makes and models. Many dealers responding to the Powersports Business/BMO survey listed lack of inventory as the number one issue impacting their business. Certainly pent-up consumer demand bodes well for driving traffic to the store, but there is another issue facing powersports dealers. What happens when you don’t have enough staff – or the right talent – to capitalize on that consumer demand?

Categories
Business Growth

Prepare for Profit in 2021

While the country is slowly emerging from the effects of the pandemic, the powersports industry started 2021 with a bang! So, what should powersports dealers do now to prepare for the coming months?

According to composite data from more than 1,650 dealerships in the U.S. that use the CDK Lightspeed DMS, revenue from new and pre-owned Major Unit Sales continued to rise 46% in the January 2021 period vs. January 2020.

There are several factors contributing to continued strength in powersports sales. Temperatures are warming, vaccine distribution is rolling out, and COVID-19 cases are trending down across much of the country. A third round of stimulus checks plus income tax returns will hit consumer bank accounts in coming months. Potentially flush with cash and improved consumer confidence, there is a good chance for steady traffic – both online and in the showroom. But will you have what these customers are looking for?