In three short weeks, 2021 has proven to be as unpredictable as 2020. However, opportunities still abound. While vaccine doses are making their way across the country, COVID-19 cases are hitting all-time highs. Congress passed a last-minute stimulus package that some believed fell far short of the need, while others welcomed the opportunity to apply for new loans. So what’s in store for the powersports industry? Likely much of the same, plus some new things to address.
Let’s start with the new stimulus package. In 2020, the powersports industry saw record sales of dual and off road units and notable revenue generation covering the past two years of declines. While anecdotal, many dealers attribute the spring stimulus coupled with stay-at-home orders with the spike in sales. The same scenario could play out with the latest stimulus package, and any others that might follow in the first quarter.
However, there are some headwinds which could put a damper on sales. Data from the Bureau of Labor statistics saw 140,000 jobs lost in December, reflecting the first time job growth has shown a reversal since April. The lingering economic effects of the pandemic have also widened the wealth gap. Americans facing wage challenges and potential housing evictions have depleted any savings they may have accumulated earlier in the year, making a bike purchase out of the question, while families in more secure financial positions may be looking for that off road purchase to fill the time.
New rules and opportunities
It can be expected under a democratic administration for compliance to once again move to the forefront of dealer priorities. While following the rules and regulatory paperwork is often cost-prohibitive and time consuming, savvy dealers can use their attention to detail as a marketing tool, giving concerned consumers a strong sense of safety and security.
Providing the right combination of consumer protection products with each purchase can also boost consumer satisfaction and increase the chance for return business – not to mention added revenue on the initial sale. If the pandemic has taught us anything, it has reinforced the value of customer care and relationships. A dealer who understands why their customer is making a purchase and provides the right tools and support will win every time.
With more than 40 years helping dealers navigate the changing headwinds of economic activity and compliance oversight, EFG Companies has the solutions you need to create opportunities from challenges for a profitable 2021. Contact us today to learn how we can take your business to the next level.