Dealership Training

It’s Not Too Late

Powersports dealerships and salespeople alike have reaped the benefits of healthy profit margins over the last few years. However, just as the margin pendulum swung deep into seller’s market territory, it’s beginning its backward trajectory into a buyer’s market.

According to Lightspeed DMS, powersports dealers reported an overall revenue loss of 1.4 percent during the first quarter of 2023, with service showing the only positive trend. The Powersports Business Q1 Dealer Survey also reflected increasing concern for growing inventory levels in the face of mounting economic fears. Dealers are split on their outlook for the remainder of the year, with many leaning towards “somewhat worse” to “significantly worse” as compared to the end of last year. While inflation and pricing continue to worry, inventory issues have eased significantly.

Where does that leave you? It should be a dog whistle to step on the gas and start selling! I don’t mean lowering your prices or launching some gimmick. I mean empowering your sales team to dust off their selling habits, which may have been dormant for the past three years. The days of relying on ‘pent up demand’ and high margins to make quota are over. The effects of stubbornly high interest rates, lingering concerns about the economy and a potential recession are beginning to show. Your sales team likely needs a refresher course – at a minimum – or a complete training upgrade given the increasing transition to a digital sales platform.

Business Growth Dealership Training

Max Out Productivity

We have had some much-needed good news over the past few weeks. Parts of the United States are opening to nearly full capacity. The number of unemployed workers declined a bit as businesses brought back furloughed staff or hired new team members. Powersports has seen a burst of good news with ATV and dirt bike sales exceeding expectations. While no one is popping any celebratory champagne corks, the positive headlines are a balm to our bruised economy.

However, the COVID-19 pandemic remains a real threat. Hot spots continue to flare, sending record numbers of people to the hospital. A large percentage of Americans are still hesitant to visit businesses in person, instead relying on the online platforms that have sustained their lives since mid-March. As a retail powersports dealer, how do you maximize your opportunities to sell vehicles?

Digital options pay off in productivity

Since we have all been forced to rely on our online tools during the shutdown, more powersports sales are taking place on digital platforms. Proactive dealers who encourage customers to use online shopping tools, including online chat, virtual test drives, trade-in valuation, and financing calculators are capturing greater returns. However, simply providing online tools is not enough to differentiate your dealership from the competition for today’s consumers.