Category: Business Growth

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Business Growth

Big Ticket Recreation for the Win

As we move into the dog days of summer, my thoughts drift to a sandy beach or a mountain trail complete with a jet ski or 4×4 utility vehicle. However, I don’t think this is going to be the year of the big getaway. Our powersports and marine industry have a lot of challenges on their hands this summer. Ongoing price concerns and lingering inflation coupled with a heightened political climate have created challenges that cause a negative overhang for both consumers and dealerships.

According to composite data from 1,700 dealers who use the Lightspeed DMS, the average dealer was down 8.4 percent in combined revenue in May 2024 as compared to 2023. This decline is especially concerning, considering we are well into the typically busy recreation season. Data from the Conference Board reflected consumer confidence continues to weaken with persistent concerns about inflation, prompting buyers to hold off on purchasing homes and autos.

But there are some bright spots on the horizon. The Committee for Economic Development, which oversees the Conference Board, shared their predictions for 2024, indicating that consumer sentiment has changed since the pandemic. Buyers are increasingly upset by uncertainty, prompting them to seek out experiences and spend on things they really enjoy. This is especially true for younger generations.

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Business Growth

Come On In, The Water’s Great!

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.

PWC Market

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!

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Business Growth

Cutting Waves…or Cutting a Check?

If your family is anything like mine, the countdown to summer begins when the calendar flips to May. End of school, warmer weather, and the Memorial Day holiday prompt thoughts of weekends on the water. I bet you – and your marine and personal watercraft customers feel the same way. But nothing ruins the outing more than a boat or jet ski that won’t run or dies in the middle of the lake! As a dealer, what are you doing to ensure your customers enjoy hours of fun cutting waves instead of cutting checks for expensive repairs? More specifically, are you generating revenue from value-based protection products that will keep those recreational units in the water versus on the dock?

As I’m sure you’re aware, the U.S. watersports market is doing quite well. Based on market research from Statista, the watersports equipment market will experience annual growth rate of 4.34 percent from 2024 to 2028. According to the US Bureau of Economic Analysis (BEA), around 100 million Americans go boating each year. Outdoor recreation makes up 2.1 percent of our country’s GDP, generating USD $788 billion in real gross output. Boating and fishing are the largest outdoor recreation activities in the country, totaling nearly USD $23.6 billion. While that’s great news, these numbers don’t put dollars on your balance sheet or customers on your doorstep.

What does reach customers, and tangentially your bank account, is building a strong transactional relationship with current and new customers. Recognize that your customers may be planning for that summer getaway without considering the functionality of the toys they plan to take with them. Make it your job to protect their vacation and their marine and personal watercraft vehicles.

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