Category: Business Growth

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Business Growth

Maximizing Your Opportunities for Profit in 2023

Consumer demand for off-road, boats, and personal watercraft units remained strong for the first half of 2023. However, high prices and financial barriers have impacted sales. While powersports dealers were early movers in digital retailing, they need to take further advantage of this opportunity to strengthen online sales models to have a successful second half of 2023. In addition, a focus on localized financing and improved service capabilities for older models should offset potential revenue loss.

For the powersports and marine industries, the high-flying days of 2022 appear to have come to an end in the first half of 2023. While May dealership revenue growth notched an increase of 8.3 percent for service and sales according to Lightspeed DMS, growing economic concerns have prompted many buyers to delay purchases. The Powersports Business Q1 Dealer Survey reflected that dealers are split on their outlook for the remainder of the year with many leaning towards “somewhat worse” to “significantly worse.”

Although inventory issues have eased significantly and consumer demand remains strong, overcoming rising prices along with growing interest rates will be a tall order for dealers in the second half of the year. Bolstering online sales, taking a customer-focused approach to ownership, and increasing service capabilities to keep those units operating will deliver needed revenue regardless of any economic headwinds.

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Business Growth

Turning the Page

The weather has prompted a slow start to spring in several parts of the country. Weekly snowstorms in the West, chilly temperatures in many Midwestern states, and unseasonal thunderstorms in the East have delayed many folks getting out on the road and enjoying their powersports vehicles. While we can’t do anything about Mother Nature, we can make sure our customers are bringing in their bikes for service now, ensuring they’re ready to go when the weather decides to cooperate.

There is some good news for customers in the market for a new bike or an upgrade. Supply chain issues have largely eased, and many financial indicators are trending positive. While the Federal Reserve increased interest rates a quarter of a point in March, the consumer price index declined to 5 percent in March 2023 on an annual basis, down from 6 percent in February, according to the U.S. Bureau of Labor Statistics inflation report, and the U.S. unemployment rate remained below pre-pandemic levels at 3.5 percent. Not everything is rosy but there is optimism in several economic brackets.

One thing that has remained consistent is the consumer’s penchant for shopping – and buying – a bike online. Thanks to the pandemic, the rate of digital sales continues to grow according to industry organization Specialty Equipment Market Association (SEMA). The quality of your digital platform makes all the difference. From providing information to answering potential buyer questions, your dealership’s digital platform makes a valuable connection. But, how do you know whether your dealership has the right digital content?

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Business Growth

2023 – Two Sides of the Coin

The challenges facing powersports dealers today are largely expected to continue in 2023, with slight changes. Economic uncertainty, evolving dealership sales models, fluctuating profitability targets, persistent staffing challenges, and continued shortages of powersports parts are just a few of the issues which will impact the coin toss governing dealership profitability.

There are some strategic plays for dealers to implement in their game plan. Let’s look at these areas to target for a winning 2023.

Focus on the end zone

On the powersports dealership team, everyone has a role to play. But the team is only successful if everyone works together to get in the end zone. Dealers who take a consumer-focused approach will find an easier path in a potentially tumultuous year. Implementing sales and customer service best practices across all teams, managing the sales from inquiry to delivery, and focusing on the ownership lifecycle in service are all approaches that will generate points on the field.

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