Tag: Powersports Business

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?

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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?

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Categories
Business Growth

The Outcome Is In Your Hands

The third quarter of this year ended with a bang for both new and used powersports dealers, with unit sales growth up 27.3 percent. The 3Q Powersports Business/BMO Capital Markets dealer survey showed 69 percent of dealers were above plan for the year. Of the survey respondents, 83 percent are single-store operators and the majority carry a wide variety of powersports products. Both new and pre-owned unit sales were strong, with 1 in 5 dealers reporting that F&I sales were very strong.

What happens when those strong sales aren’t so strong? According to the survey results, 84 percent of respondents were concerned about the US political climate and another 63 percent were most concerned about the pandemic. When asked specifically about the presidential election, write-in comments reflected that dealers believe a Democratic win would negatively affect business.

So let’s take a quick check on our current situation. The US continues to suffer from the coronavirus. In fact, the number of new cases recorded each day has ballooned from fewer than 40,000 in September to over 100,000 in early November. And scientists are cautioning against a larger winter surge, as people are forced inside due to cold weather. Clearly, COVID-19 is not going away anytime soon.

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