Powersports Switchback

Keep On Keeping On

Post author By efgmarketing
Post date July 10, 2019

Contributing Author:
Glenice Wilder
Vice President
EFG Companies

We are halfway through a very interesting year in retail powersports. If you had planned for continued low motorcycle sales and increased ATV, UTV sales, congratulations! You’ve planned successfully and hopefully are managing well. Going forward, you’ll need to stay the course. The forecast for the second half of this year and all of 2020 appears to be equally bumpy. In fact, Black Book recently questioned whether the powersports market would see its typical price spike in Q3.

The Economy

On June 19^th, the Federal Reserve chose to keep interest rates steady in the near term, but retained an option to cut rates as economic risks mount and inflation remains stuck below their target. Amid continuing trade tensions and slowing global economic growth, the Fed is preparing for the economy to take a hit and is keeping an interest rate ace up their sleeve.

There are other indicators of a stalling economy. A subdued global economy, increased corporate stock buybacks, and some spikes in lay-offs will keep business bumpy throughout 2019 and into 2020. Significant peaks and valleys in the stock market have caused unrest. The good news is that investors are predicting another recession in two to three years, meaning a recession may still be a few years off.

Tags Federal Reserve, Harley Davidson, Polaris, recession, Trump Administration

Business Growth

Details Matter: Pick the Right Product Administrator

Post author By efgmarketing
Post date May 1, 2019

Contributing Author:
Glenice Wilder
Vice President
EFG Companies

With powersports sales flat-to-down for the past couple of years, more dealerships are offering a variety consumer protection products to differentiate their business and generate more revenue. While this is certainly a sound strategic move, don’t rush to sign up the first product administrator you find. There are some big differences between providers. Make sure you properly vet your provider before they drain your profit – or ruin your reputation!

It’s You…Not Them

Because your customers are buying F&I products from you, their experience with those products will reflect back on you. You can have the greatest closing numbers in the world, but if your F&I product experience doesn’t reflect the service you provide in the dealership, your customers are not likely to return for their next purchase.

Essentially, your customers may associate their claims service experience with your dealership. A good experience could cement their loyalty and cultivate return business, whereas a bad experience could send the customer elsewhere when shopping for their next vehicle.

Dealership Training

Don’t Skip the Warranty Review

Post author By efgmarketing
Post date April 11, 2019

Contributing Author:
Eric Fifield
Chief Revenue Officer
EFG Companies

Here’s the scenario. It’s a busy Saturday. Every F&I manager is working a deal, and there are still two customers waiting to start the finance process. What’s an F&I manager to do? You don’t want to lose customers due to a long wait, but you also want to make the most on each deal. In an effort to speed up the F&I process, it’s all too common for F&I managers to rush certain aspects, like the manufacturer’s warranty review.

However, this could lead to several pitfalls for your dealership, making the F&I process longer and leaving you open to noncompliance. Under the Magnuson Moss Warranty Act, all powersports dealers are required to provide detailed information about warranty coverage before a customer purchases a vehicle for personal, family or household use. This helps ensure that customers know what to expect in the event something goes wrong, and it enables them to compare coverage on vehicles.

So, if a motorcycle comes with a manufacturer’s warranty, or complimentary coverage of any kind, your dealership is required to inform customers of the coverage. Additionally, if an F&I manager rushes the warranty review, they miss the opportunity to identify potential consumer needs or concerns that could be filled with consumer protection products. This could lead to a much longer product presentation and negotiation process, lengthening the F&I process as a whole and potentially reducing product penetration and PRU.

The manufacturer’s warranty review is about much more than identifying what the warranty covers. Effective managers use this review to identify areas of necessary coverage and build value in consumer protection products before the product presentation.