{"id":255,"date":"2020-11-19T16:38:52","date_gmt":"2020-11-19T16:38:52","guid":{"rendered":"http:\/\/efgintelligence.com\/powersportsswitchback\/?p=255"},"modified":"2020-11-19T16:38:52","modified_gmt":"2020-11-19T16:38:52","slug":"the-outcome-is-in-your-hands","status":"publish","type":"post","link":"https:\/\/efgintelligence.com\/powersportsswitchback\/2020\/11\/19\/the-outcome-is-in-your-hands\/","title":{"rendered":"The Outcome Is In Your Hands"},"content":{"rendered":"

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.<\/strong> The 3Q Powersports Business\/BMO Capital Markets <\/em>dealer survey showed 69 percent of dealers were above plan for the year.<\/strong> 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.<\/p>\n

What happens when those strong sales aren\u2019t so strong? According to the survey results, 84 percent of respondents were concerned about the US political climate<\/strong> 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.<\/p>\n

So let\u2019s 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<\/strong> 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.<\/p>\n

Now let\u2019s unpack some of the data behind the strong sales data. The government stimulus package in the second and third quarter, coupled with work\/school at home and decline in traditional vacations prompted buyers to turn to ATVs and other recreational vehicles. To help things along, low interest rates made powersports a financially attractive option to capture more of those stimulus dollars.<\/p>\n

Where are we now? While the Federal Reserve has signaled their intent to keep interest rates low,<\/strong> the traditional winter down-turn for motorcycles will likely occur. Some categories of ATVs and recreational vehicles could remain strong.<\/strong> But it is unlikely that another stimulus package will be approved before inauguration day. Will your fourth quarter sales take a turn for the worst?<\/p>\n

Leaving money on the table<\/strong><\/h3>\n

Let\u2019s revisit the survey data point regarding F&I revenue. One in five dealers said F&I sales were very strong. Really \u2013 only 1 in 5? Hurray for the one dealer \u2013 he is maximizing the revenue potential of each sale. The other four dealers could be leaving a lot of money on the table at the close of each sale.<\/strong> While not every buyer will purchase a protection product, we can certainly do better. And if the Q4 sales do hit a dip, the additional revenue could mean the difference between a black or red quarter.<\/p>\n

The steps to maximizing F&I revenue are fairly simple and easy to incorporate into your sales process.\u00a0 For new units, attaching solid, value-add protection products can make that holiday \u2018sale\u2019 price a better deal for the consumer and the dealer.<\/strong> If you are trying to move inventory to make room for new 2021 bikes, value-add protection products optimized for each customer\u2019s needs can make that buyer feel even more secure in their purchase.<\/p>\n

For used bikes, vehicle service contracts attached to good, solid units can produce several percentage points of revenue, while also increasing the perceived value of your inventory. Cash-strapped buyers are also better candidates for financing when a protection product is attached.<\/p>\n

If you\u2019re struggling with F&I penetration, maybe it\u2019s time to retrain your team<\/strong> on how to conduct the customer interview, use a consultative approach to the product presentation \u2013 pairing product benefits with individual needs, and how to overcome the most common objections.<\/p>\n

With more than 40 years helping dealers achieve their F&I profitability goals, EFG Companies has the right training<\/a> and F&I solutions for you. Whether you need an online rehash or in-depth in-person training at your dealership, we can turn your team into Top Performers. Contact us<\/a> today to learn more about our training services.<\/p>\n","protected":false},"excerpt":{"rendered":"

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 […]<\/p>\n","protected":false},"author":1,"featured_media":256,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[13],"tags":[91,103,96,75,60],"class_list":["post-255","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-growth","tag-atv","tag-bmo-capital-markets","tag-covid-19","tag-federal-reserve","tag-powersports-business"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/efgintelligence.com\/powersportsswitchback\/wp-content\/uploads\/sites\/6\/2020\/11\/Artboard1.png?fit=1200%2C526&ssl=1","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7NG7I-47","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/posts\/255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/comments?post=255"}],"version-history":[{"count":1,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/posts\/255\/revisions"}],"predecessor-version":[{"id":257,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/posts\/255\/revisions\/257"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/media\/256"}],"wp:attachment":[{"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/media?parent=255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/categories?post=255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/efgintelligence.com\/powersportsswitchback\/wp-json\/wp\/v2\/tags?post=255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}