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Business Growth

Digital Sales Drive 2022 Success

Does it feel like aside from news on the pandemic and supply chain challenges, the mantra for the last two years has been digital sales? Even at the 2022 AIMExpo, “digital” was the word on everyone’s lips. Panelists stated that the bulk of powersports customers have spent significant time online researching bikes and financing before they ever set foot in the dealership. Analysts report that 90 percent of powersports sales begins online, yet nearly 85 percent complete the sale at the dealership.

If you are not using an omnichannel approach to engage the customer on the digital platform of their choice, with accurate, easy-to-navigate information, then chances are that customer will never make it to your dealership.

Train for digital sales

Engaging with a potential customer in a digital setting is very different than the dealer floor.  Understanding the customer’s needs and moving them through the sales process in a virtual platform requires certain skillsets.

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Uncategorized

Staff for Success in 2022

While we wait for the year-end numbers to come in, we can make some educated estimates that sales will continue to be strong, inventory issues will continue to unwind, and service will remain an opportunity for generating profit. But one of the biggest questions looming in 2022 is staffing and labor. Will you have enough employees to support your sales and service opportunities? And, if you have sufficient staff now – will they stay?

Labor is becoming a serious issue across all areas of the economy, impacting both large and small businesses. While the unemployment rate has improved since the height of the pandemic – falling from 6.3 percent in January 2021 to 3.9 percent in December – the rate of those leaving their jobs has escalated. Employers are having to play offense and defense at the same time, struggling to fill a near-record 11 million openings while also holding on to existing workers.

As dealers look to re-staff in 2022, some are finding themselves competing in a very tight labor market. Some economists are starting to believe the pandemic has changed the behavior of the job market in ways that could have a lasting impact, including resetting the relationship between workers and their employers.

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Business Growth Powersports Market

Keep the Banner Flying in 2022

For powersports dealers, 2021 is shaping up to be another banner year, mirroring the record setting gains made in 2020. Regardless of continuing inventory issues caused by pandemic supply chain bottlenecks, units continued to hit the road. While on-road unit sales repeated their decline, off-road and personal watercraft unit sales increased exponentially. Powersports has proven to be a balm to ease consumers’ pandemic malaise.

Will the good times continue? For 2022, demand for off-road and personal watercraft vehicles is expected to remain high. Once manufacturers begin producing more units at scale, dealers can expect the 30-point margins enjoyed during the boom years to begin to decline as supply chain issues resolve. For some, it will be tough to wean themselves from those lofty profits. Dealers who pay close attention to market pricing – and adjust accordingly – will continue to show strong sales and market penetration. Dealers who cling to those margins may find themselves priced out of the market, even though consumer demand remains high.

The key to a successful 2022 will be based on implementing a consistent sales model at prices the market can bear, with a focus on creating long-term customer relationships. Training for all staff members on financing and protection products will also be key to boosting revenue as the sales process evolves to incorporate more online resources. Savvy dealers know there is more than one way to generate profit from a sale. Adopting a more ‘full service’ approach within the dealership will keep those customers coming back.

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