Powersports Switchback
What’s the most valuable thing in your powersports dealership? The latest model side-by-side? A deep inventory of used bikes? Nope. It’s your employees. Without your employees, nothing gets sold or fixed. Customer service is out the window…and they certainly don’t return. But are your employees as profitable as they could be? Do they need better training? It’s a good question to ask.
The groundhog did not see his shadow; the clocks have sprung forward; tax season is in full swing, and spring is just around the corner. Powersports dealers across the U.S. expect to capitalize on a strong spring selling season. Before the frenzy starts, set your team up for success and avoid burnout by investing in your people today.
According to the Bureau of Labor & Statistics, 44.1 million people voluntarily quit their jobs in 2023. As of June last year, Powersports Business News reported that labor shortages continue, citing a survey by Sunrise Cycles stating that 62 percent of dealers surveyed were short staffed in at least one department.
We’ve all felt the stress that comes with a short-staffed environment. Everyone takes on more responsibilities, and burnout and disengagement are just around the corner. According to the most recent Gallup State of the Workplace Report, employee engagement has continuously dropped from 2020 through 2022 and the ratio of engaged to disengaged workers in the U.S. is now 1.8-to-1.
Based on data from 1,700 dealerships in the US who use the Lightspeed DMS platform, powersports closed out 2023 with a glimmer of positivity. While overall revenue was down 0.9 percent, unit sales were up 0.7 percent, signaling the potential for hope in 2024. Regionally, the Northwest, Midwest and South all notched notable revenue gains.
While interest rates and inflation clearly put a damper on sales in 2023, positive economic news in January should prove beneficial. Consumer sentiment is also showing signs of improving as inflation eases and gas prices drop across most of the country. Hiring picked up sharply in January as employers added a booming 353,000 jobs, highlighting a labor market that continues to defy high interest rates and household financial strains. while at the same time incomes of most Americans are growing.
These indicators may paint a rosy picture for 2024. But it’s critical that dealers understand one thing above all else. Selling a powersports unit today is radically different than during the pandemic. Every step in the sales process – from the initial buyer consideration to rolling that unit off the lot – requires a unique set of skills from every team member. Shifting product mixes, evolving consumer demands, and emerging ways to leverage data are all factors dealers need to keep in mind as they empower their teams for success. And F&I training is the key to ensuring team members are firing on all cylinders.