Tag: CDK Lightspeed DMS

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Featured

Winning with Excellence

As we close out the first quarter of 2022, powersports dealers are seeing some positive signals, mixed with some areas of concern. According to CDK Lightspeed DMS, revenue from new and used units grew 3.4 percent in January 2022, versus January 2021. Service saw a 1.4 percent decline as compared to a 13.2 percent increase in December. Overall, average dealer revenue was up 3.0 percent for the month. While this is down notably from the high-flying days at the beginning of the pandemic, it’s still a positive.

Areas of concern continue to be available inventory for both new and used units as well as the rate of inflation. Speaking of inflation, a new wrinkle popped up this month as the Federal Reserve raised their interest rate a quarter of a point and signaled six more increases planned for 2022. While these moves are made to tame the rise of inflation, the impact the average consumer can expect to see includes increases in the interest charged on credit card revolving debt, higher mortgage rates, as well as auto and powersports loans.

This monetary tightening may not affect powersports customers immediately. But there is one area that dealers can boost right away….and it might even be free. Dealers can ensure that the entire ownership experience for their customers is one filled with excellence. This intangible, anecdotal attribute will lock in the sale today and for every repeat interaction. It can even bring new customers to the store in the form of referrals and stellar reviews. All it takes is the commitment from every team member and business partner to ensure that each customer engagement is performed with excellence!

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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?

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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?

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