Issue link: http://read.dmtmag.com/i/772602
FOCUS PSB Outlook 2017 www.PowersportsBusiness.com Powersports Business •January 23, 2017 • 13 Survey finds most dealers expect revenue growth Fewer than half of the dealers recently polled by Powersports Business grew their 2016 rev- enue, however, three out of four expect to see an increase in 2017. The December survey of 130 U.S. and Canadian dealers found that 47 percent of dealers grew their revenue in 2016. Another 19 percent reported flat revenue, and 34 percent saw a decrease. But there's room for optimism going into 2017, as 75 percent of dealers said they anticipate revenue increases for the year. Nearly 40 percent of dealers expect their revenue to increase less than 10 percent, while 21 percent are seeking 10-25 percent growth, and 5 percent are projecting a jump of more than 25 percent. Again, 19 percent expect flat growth, but only 6 percent are projecting a revenue decrease in 2017. When looking toward the year, the over- all economy is the biggest factor that deal- ers believe will affect their success. When asked to rank certain concerns on a scale of 1 to 5, with 1 being not important at all, and 5 being very important, 92 percent of dealers gave overall economic conditions a 4 or 5. The same number of dealers also ranked consumer confidence as a 4 or 5. More than half of all dealers also ranked the other factors in the survey as a 4 or 5. Government regulations were of least con- cern out of the five options given, with 47 percent of dealers giving it a 3 or less. Powersports Business also asked dealers to rank which challenges to the powersports industry are most concerning to them, with 1 being unconcerned, and 5 being very con- cerned. Seven out of 10 dealers gave affordabil- ity a 4 or 5. And 67 percent ranked workforce challenges as a 4 or 5. The aging demographic of motorcyclists was ranked as a 4 or 5 for 62 percent of dealers. When it comes to their partners, dealers said BRP and Honda should earn the MVP award for 2016, with each getting 11 percent of the vote. Coming in closely behind with 10 percent each were Kawasaki, Polaris and Yamaha. Harley-Davidson earned 5 percent of the vote. BMW and Ducati each had 3 percent of dealers voting them MVPs. Western Power Sports (WPS) took a com- manding lead in the PG&A distributor MVP vote, with 35 percent. Parts Unlimited/Drag Specialties and Tucker Rocky tied with 21 per- cent of the vote each. See dealer comments on their biggest concerns for 2017 and what they're most optimistic about going into this year on the following pages. PSB Dealers looking forward to 2017 HOW WAS YOUR REVENUE IN 2016 COMPARED TO 2015? Source: Powersports Business Up more than 25 percent 2% Up 10 to 25 percent 24% Up less than 10 percent 21% Flat 19% Down less than 10 percent 12% Down 10 to 25 percent 11% Down more than 25 percent 11%