Tag: Powersports

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Business Growth Powersports Market

Navigating the New Normal

Glenice Wilder Vice President EFG Companies
Contributing Author:
Glenice Wilder
Vice President
EFG Companies

Up or down? Good or bad? The compare and contrast analysis has become a daily past time as we navigate our COVID-19 pandemic world. The air might be cleaner, but there are fewer vehicles on the road supporting the economy. We are spending more quality time with family and loved ones while navigating online school and/or work and cabin fever. When it comes to the retail powersports market, we find pluses and minuses in this new normal as well.

  • Interest rates are at an all-time low, making financing a bike pretty attractive.
  • Plant shutdowns have helped push dealership inventory out the door while keeping prices in the black.
  • Shelter-in-place restrictions might mean more time to ride with family and friends.

But there are also some economic factors which reflect the ying and yang.

  • The unemployment rate has soared to 14.7 percent, but some industries are experiencing tremendous demand. Food and beverage companies, delivery services, pharmacy/healthcare businesses and cleaning services are eagerly hiring to keep up with consumer demand.
  • Nearly all states have eased some restrictions on businesses in an effort to jump-start the economy, with some seeing limited success.
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Business Growth Dealership Training Powersports Market

Navigating Subprime Paper

Glenice Wilder Vice President EFG Companies
Contributing Author:
Glenice Wilder
Vice President
EFG Companies

In the last five years, lenders have been competing for more powersports business. Some loosened credit requirements and extended loan terms, while others evaluated the use of alternative data to more accurately determine a person’s creditworthiness.

However, powersports dealers still struggle getting subprime paper bought. When my team is in the store and we see this struggle play out, we always ask how much effort is being put into maintaining lender relationships. The simple fact is, the stronger the relationship, the more willing a lender will be to negotiate and buy outside of their criteria.

So what does it take to develop strong lender relationships? When pondering this question, think beyond complete and accurate applications. It takes communication and the ability to manage expectations.

Do all your team members know lender criteria like the back of their hands?

It’s never a good idea to randomly submit an application hoping for an approval. This process increases each lender’s Look-to-Book ratio, and angers customers when they start receiving a bunch of denial letters in the mail. Each team member needs to clearly understand each lender’s criteria and only submit loans they know will be approved.

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Business Growth

Do You Know What Makes Millennials Purchase Motorcycles?

Glenice Wilder Vice President EFG Companies
Contributing Author:
Glenice Wilder
Vice President
EFG Companies

Millennials, born between 1980 and 2000, are becoming the most sought-after generation by businesses. At the end of 2015, they had spent $2.45 trillion. By 2018, they’ll spend greater than $3.4 trillion – more than the previously coveted baby boomer generation. Each day, over 10,000 people turn 21. But here’s the rub. Millennials possess a very different purchasing mindset versus previous generations. If you want to sell to them, you must understand them – and likely change how you sell. Heads up powersports dealers – the times they are a’changing!

What Motivates Millennials?

Numerous labels have been attached to the millennial generation. But just as the Depression formed the World War II generation, the Millennials are a product of the 80s, 90s and 00s sociology. Let’s consider a few traits that should impact your sales efforts.

Millennials have the highest education rate of any generation to date. They’re smart and focused on research, taking nothing at face value. For a powersports dealer, this means you better have the facts to substantiate the claim that bike X is better than bike Y.

Continue reading “Do You Know What Makes Millennials Purchase Motorcycles?”