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.
