Author: efgmarketing

A Successful 2018 Depends on You!

Post author By efgmarketing
Post date January 17, 2018

Contributing Author:
Glenice Wilder
Vice President
EFG Companies

2017 marked a lackluster year for many powersports dealers. Unit volume did not meet projections, and we’re seeing more dealers sell inventory at or below cost just to keep it moving. While it appears that 2018 will look much the same as 2017, there is one caveat. Pre-owned unit sales will most likely continue to outpace new unit sales, due to consumer demand.

Dealers would be wise to analyze today’s consumer. Changing demographics show that Millennials and are overtaking Baby Boomers in terms of spending power. These price-sensitive generations are more likely to consider pre-owned a more appealing option for their already-strained budgets. New bikes are often priced outside their comfort zone. As a result, consumers who delayed purchasing a bike in 2017 will likely shop for gently used bikes in 2018.

Because of this shifting demographic and financial constraints, powersports dealers should outfit their pre-owned inventory with late-model bikes that either have a little bit of manufacturer warranty left, or are just outside of manufacturer warranty coverage. In addition to being top sellers, these bikes offer the most opportunity to sell F&I products on the back-end, helping powersports dealerships increase their profit potential. Adding a CPO component can also help move these bikes off the floor and give the consumer an added value component, as well as help to increase repeat service drive business.

Business Growth

Maximize Value For Millennials

Post author By efgmarketing
Post date December 6, 2017

Contributing Author:
Glenice Wilder
Vice President
EFG Companies

Ah, Millennials. They are a much maligned – yet coveted – consumer. I truly believe this demographic will single-handedly change how goods and services are bought and sold. So, who are they and how should a powersports dealer capture their sale?

The Millennial generation was born between 1980 and 2000. They are the biggest in history, even bigger than the Baby Boomers. Financially, this group won’t reach their peak earning age until 2020. However, Millennials already control a large chunk of liquid assets, an amount that is forecast to grow to $7 trillion by 2020. By 2025, they are expected to generate 46 percent of all U.S. income.

This generation spends money very differently than their Baby Boomer elders. According to a Goldman Sachs Research report issued this year, Millennials are far less likely to purchase something because it’s convenient. Quite the opposite. They will delay a purchase in search of a lower price or a better deal. While they do spend money – they focus on value rather than impulse.

Millennials are the first completely digital generation, living almost entirely on their smartphones. They are research obsessed and will quickly become the expert on an item before they purchase. With this information in hand, how do you tackle this knowledgeable, value-driven customer?

Tags Millennials

Business Growth Powersports Market

Set Your Dealership Apart with Certified Mechanics!

Post author By efgmarketing
Post date October 18, 2017

Contributing Author:
Glenice Wilder
Vice President
EFG Companies

Crowd-sourced review sites are becoming more and more popular. While they don’t replace the more intimate word-of-mouth recommendation from a trusted friend, they are certainly a go-to resource for anything from a good dinner to a mechanic. And, speaking of mechanics, how do yours stack up? Do their skills set your dealership apart from the competition, or do your customers even know you have any onsite? And, if you have mechanics onsite, are they certified?

While the powersports industry does not have an official certification body, dealers still have several options to certify their mechanics.

Available Training Options

Whether you already have mechanics on staff, or are looking to hire, understand the training options that are available. There are several educational entities that offer certified training. The Motorcycle Mechanics Institute housed within the Universal Technical Institute offers several hands-on courses and partners with all of the major bike OEMs. General mechanical skills, brand-specific electives and CPO training are all available. Online courses are also available, but lack the necessary hands-on instructor component.

Some community and vocational/technical schools offer an introductory course on automotive and motorcycle engine repair. If you have this type of school in your area, visit the campus, speak to the instructor, and get a sense of the skills required for graduation.

Tags EFG Companies, Glenice Wilder, Motorcycle Mechanics Institute, Universal Technical Institute