School is out and summer is in full swing, meaning it’s time to enjoy fun in the sun! If you are a powersports dealer who carries personal watercraft inventory, these may be your favorite months of the year. Thanks to technology advances in personal watercraft and jet skis, there are some great new models available with useful amenities. These new units come at a time when consumers are hitting the water in record numbers. Data from Global Market Insights reveals the personal watercraft/jet ski market to be valued at $1.9 billion with a 5 percent compounded annual growth. North America takes the bulk of that share at 62 percent.
While those billions aren’t reflected in your balance sheet, they do offer some upside guidance to make strategic decisions at your dealership. If Q1 sales numbers are any indicator, you might be scratching your head about where all this revenue is going!
According to Lightspeed DMS, powersports dealer sales were down 11.4 percent and revenue was down 10.4 percent in April 2024, as compared to April 2023. Dealers in the southern states reported the least amount of decline, likely reflecting warmer weather.
So, what is the best strategic decision you should make this summer? Ensure your teams are getting every dollar possible from every sale! Leaving money on the table in this market can mean the difference between a successful selling season and falling into the red. One simple step – stand in your customer’s flip-flops for a few minutes during every encounter! Are you providing the best deal possible, with the best protection products, that finalizes the deal and keeps that customer coming back? Are you selling value…or another unit?
Hopefully optimistic
According to the Q2 2024 TransUnion Consumer Pulse Survey, half of Americans ranked inflation for everyday items such as groceries and gasoline as a top financial concern. While the US Consumer Price Index dropped to 3.4 percent in April – down from 4.9 percent a year ago – the decline has not trickled into consumer pocketbooks.
Despite these gloomy sentiments, more than half of consumers reflect resilience and are optimistic about their household finances over the next 12 months. Nearly half of consumers expect to see their incomes rise during the year, with more than 60 percent of Gen Z and Millennials reporting optimism about household finances.
Now, let’s think about your customers. Chances are, inflation has taken a chunk out of their disposable income and high interest rates have impacted their borrowing comfort level. On the flip side, employment levels remain high, and the majority of industrial segments are healthy. The key driver is value. What is the value of that personal watercraft or jet ski unit? It’s not just the unit itself, it’s the time spent with friends or family, enjoying restorative recreation, and creating lifelong memories. Is your dealership in the business of selling memories – or personal watercraft? What mindset does your sales team bring to the transaction?
Training is the best money you can spend right now to reinforce the key values or your dealership and make the most out of every sale.
At EFG, we realize dealers who sell marine and personal watercraft products face several challenges. Our proven team of EFG trainers and experts are here to help you get those units in the water and grow needed F&I revenue. We bring years of experience to your team. At EFG Companies, we’re more than an F&I provider, we’re your business partner in the retail marine and personal watercraft industry. Contact us today to learn more about how our team can help you achieve your winning strategy.
