Categories
Recruiting

Good Talent = Revenue

Good news! The retail powersports market continues on a roll! According to composite data from more than 1,650 dealerships in the US using CDK Lightspeed DMS, sales increased 23.9 percent in February 2021as compared to February 2020. Early results from the Q1 2021 Powersports Business/BMO Capital Markets Dealer Survey reflected that more than half of all respondents said business was trending above plan.

In general, a positive sentiment has also spread across several economic indicators. According to the U.S. Bureau of Labor Statistics, unemployment rates in each of the large metropolitan areas dipped below 10 percent in February. The stimulus at the end of 2020 ($900B) and the relief package signed in early March ($1.9T) equate to nearly 14 percent of US GDP.

However, there are a couple of wrinkles which could put a damper on that optimism. Inventory continues to be an issue, both in terms of units and parts for all makes and models. Many dealers responding to the Powersports Business/BMO survey listed lack of inventory as the number one issue impacting their business. Certainly pent-up consumer demand bodes well for driving traffic to the store, but there is another issue facing powersports dealers. What happens when you don’t have enough staff – or the right talent – to capitalize on that consumer demand?

Continue reading “Good Talent = Revenue”
Categories
Business Growth

Prepare for Profit in 2021

While the country is slowly emerging from the effects of the pandemic, the powersports industry started 2021 with a bang! So, what should powersports dealers do now to prepare for the coming months?

According to composite data from more than 1,650 dealerships in the U.S. that use the CDK Lightspeed DMS, revenue from new and pre-owned Major Unit Sales continued to rise 46% in the January 2021 period vs. January 2020.

There are several factors contributing to continued strength in powersports sales. Temperatures are warming, vaccine distribution is rolling out, and COVID-19 cases are trending down across much of the country. A third round of stimulus checks plus income tax returns will hit consumer bank accounts in coming months. Potentially flush with cash and improved consumer confidence, there is a good chance for steady traffic – both online and in the showroom. But will you have what these customers are looking for?

Continue reading “Prepare for Profit in 2021”
Categories
Compliance Dealership Training

Compliance Training in 2021

We are nearing the first full month with the new Administration and there has been lots of activity from the White House. Vaccine distribution is rolling out, COVID-19 cases are trending down across much of the country, and Congress has a stimulus package to address. All of these actions bode well for the powersports industry eager to ramp up sales.

There have been some notable actions around compliance. Former Federal Trade Commission (FTC) member Rohit Chopra has been nominated to head the Consumer Financial Protection Bureau (CFPB). During his tenure with the FTC, Chopra was active in pursuing abusive and discriminatory lending practices. Specifically, Chopra has signaled interest in establishing more protections against auto lending abuses, specifically for members of the military, Black and Hispanic consumers. If confirmed, Chopra would replace current CFPB head Kathy Kraninger.

As we can expect a renewed and revitalized federal compliance program, there is no better than now for a solid compliance training refresher for your sales and F&I staff.

Continue reading “Compliance Training in 2021”