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.
Even with the economic outlook improving, consumers in the market for a new side-by-side, ATV or UTV are interested in maximizing the deal. Make sure the sales team is well versed on the right approach to sell each type of vehicle. With inventory tight and limited options for buying the vehicle they want, the challenge powersports dealers face now is no longer about competing with the dealership down the street, but rather convincing customers to get off the fence and make their next purchase now.
To ease customer concerns, think beyond trade-in and price negotiations to the finance office. What protection products do you provide to give customers confidence in their next vehicle purchase? For example, promoting a product like xtreme Protection for ATVs and UTVs eases customer concerns about maintaining their vehicle loan payments in the event of a breakdown. xtreme Protection significantly reduces the cost of repairs, enabling customers to stay current on their loan and keep their ATV/UTV in working order without a significant dip in their savings.
Stop chasing inventory and start raking it in by convincing customers that your dealership is the place to go by providing good trade-in incentives and boosting consumer confidence with consumer protection products that meet their current and future needs.
With more than 40 years of experience helping dealers profitably navigate changing markets and consumer buying habits, EFG Companies knows what it takes to ensure your success. Contact us today to get started.
