PowerSports Business

January 23, 2017

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the aforementioned golden shovels, hardhats and local officials. Carmine was on hand with his fiancé and business partner Kellie Yea- sley, while Malabar Mayor Phil Crews and town council members, as well as representa- tives from Congressman Bill Posey's office also attended. Select bankers and other VIPs were also at the groundbreaking, as 45 people were on site. Route 1 hired Look Marketing to create the groundbreaking event. Look will also be helping with Route 1's marketing and merchandising. A MOVE IN THE MAKING Carmine and Yeasley opened Route 1 Motor- sports in Grant, Florida, in 2007. "We opened it up just as a parts and service store. We took some units in on consignment, and we had some Chinese brands that we were selling, E-TON being one of them," Carmine recalled. In late 2008, the dealership added Arctic Cat ORVs and quickly grew its market share, though the brand had little recognition on the Space Coast. "We were up probably about 20 percent market share on the off-road in that brand," Carmine said. After a local automotive group exited the powersports segment, the Space Coast became an open point for BRP. Not only had Carmine started his career as a Sea-Doo test rider, but he also worked on BRP's Advanced Design Con- cepts team at the nearby R&D/Technological Center before opening his dealership. So he was quite interested in carrying the brand. Route 1 applied for the franchise and was approved to carry Sea-Doo PWC and sport boats, Can-Am off-road vehicles and Spyders in 2010. "I truly believe that that was because they saw the impact that we were making with the Arctic Cat brand. I put a business plan together, and I was fortunate enough that they latched on to that," he said, adding that Route 1 was up against stiff competition for the franchise against dealers with deeper pockets. Sea-Doo in late 2012 announced it was dropping its sport boat line, and Bass Pro Shops planned to build an Arctic Cat-selling store near Route 1 Motorsports. Carmine saw those two factors as an opportunity to fill the space vacated by those products with another brand, so he added Polaris off-road vehicles. "Between those two really strong off-road brands, it allows people to come and look a both brands side-by-side. That helps both our BRP brand and with starting off with Polaris," he said. However, with all of those vehicles under one roof and more models coming out each year, Route 1 began to outgrow the 5,000-square-foot former lawn and garden store it was leasing. "Over the years the products have just evolved into bigger than cars in some cases, so the walls have just come in on us. We have a struggle every day for space," Car- mine reported. "I would say we spend between six and eight man hours a day just moving stuff around." THE NEW BUILDING About two years ago, Carmine and Yeasley purchased the new plot on U.S. Highway 1 off the Indian River. The purchase was a gamble. Carmine had been told only a day before that the property was going up for sale because of a delinquent tax issue with the former owner. He paid the back taxes and then acquired the land. The property sits just across Malabar Road from Malabar Mo's Bar & Grill, which Carmine and Yeasley also own. After going through some struggles includ- ing rezoning, having a site plan approved and other legal hurdles, Route 1 is now ready to build its new home. The new facility, about five miles north of the current dealership, will include a nearly 26,000-square-foot build- ing with an 18,000-square-foot showroom, a 3,000-square-foot service department and a 4,000-square-foot covered porch that will wrap around the front. A second 5,000-square-foot building will be used for storage. The facility will feature tilt-wall construc- tion, which Route 1 chose for its longevity. "We kind of went above and beyond on the building itself over doing just a typical metal building, which is pretty common," Carmine explained. "My thought behind it was I'm still pretty young, and I want it to be there for a long time. I've got two boys that are 2 and 6, and hopefully they're going to follow along in dad's footsteps and want to continue the business. So I didn't want to build something that 10, 15 years from now I have to rebuild." The new dealership will sit on three acres of land, which is about three times Route 1's current footprint. The proximity to the Indian River will allow Route 1 to offer PWC demos. Route 1 also plans to use its partnership with Malabar Mo's for mutually beneficial mar- keting opportunities. "Our restaurant and bar is known as a biker-type of place. We're very bike-friendly, and it's walking distance across the road," Carmine said. "Kellie and my's thoughts when we decided to build here is we can change somebody's tire and send them across to have a cheeseburger. And with having our customers here at the restaurant, you can walk through the parking lot and see the bikes that need a tire and hand them a card and say, 'Look, we'll run your bike over and change the tire for X amount of dollars.' It's sound business that's already next door." CHANGING MARKET In its short time with the Sea-Doo, Can-Am and Polaris brands, Route 1 has quickly become a top performer with each. Half of the year revolves around watercraft, while the other half is focused on off-road. "In the spring and the summer months, we're heavy in the watercraft business. We sell about 200 watercraft a year. And then coming into the fall and winter months gets us into the off-road business. Of course, we sell the Spyders and Slingshots as well as some used two-wheel bikes," Carmine said. The hope is that with the move, Route 1 can expand its two-wheel business, either through increasing its used bike inventory or by adding another brand. "Here on the Space Coast, it's a beautiful riding area. We've got the river; we've got the Atlantic Ocean; we've got the woods; we've got a lot of coastline to ride on. It's a really neat area for powersports," Carmine said. Route 1 also plans to grow its staff following the move. Currently the dealership employs more than 25 staffers. The new facility will also allow the dealership to increase its inventory on the floor, improve the flow of the service department and offer events on site. The new store is expected to be open by Sep- tember, though Carmine is hoping to be able to move in by some time in the summer. PSB PWC 28 • January 23, 2017 • Powersports Business www.PowersportsBusiness.com Year-over-year growth in PWC retail sales held steady in November, with the segment showing 7 percent growth over the last 12 months, according to the latest Info-Link Bellwether report. The Bellwether report tracks sales of pow- erboats across the country based on new U.S. boat registrations on a rolling 12-month basis. Bellwether states are geographically dispersed states representing roughly half of the U.S. boat market (varies by market segment and time of year). The report released in December showed that boat sales were up about 6 percent for the 12 months ending in November, steady with October's rate. PWC sales were well off the nearly 20 percent growth seen last year, but still a positive trend. WHOLESALE SHIPMENTS OF PWCS UP 2.1 PERCENT THROUGH NOVEMBER Wholesale shipments of PWCs reported by manufacturers representing 99 percent of the market were up 2.1 percent through Novem- ber, and corresponding dollars were up 2.8 percent according to the November Monthly Shipment Report (MSR), an exclusive National Marine Manufacturers Associa- tion report. On a rolling 12-month basis, U.S. out- board engine wholesale shipments were up 6.3 percent year-over-year for the 12 months through November for NMMA's control group of manufacturers, which represent 95 percent of the market. Gains were led by 4-strokes and higher- powered engines. Corresponding dollars were up 8.6 percent. PENSACOLA, FLORIDA, SIGNS MULTI-YEAR CONTRACT WITH PRO WATERCROSS The Pensacola Sports Association of Pen- sacola Beach, Florida, has committed to a three-year contract with Pro Watercross, and will host the opening round of the 2017 season. Pensacola has been one of the tour's favor- ite stops for athletes, and thousands of fans lined Pensacola's sugar sand beaches and crowded the pier over the turquoise waters for the tour's 2016 Grand Prix of Watercross. "Pensacola is very excited to welcome back the Pro Watercross Tour not only for 2017, but to also have an agreement through 2019 to bring them back to one of the world's most beautiful beaches," said Pensacola Sports Association president and CEO Ray Palmer. The Pensacola Sports Association, the sponsoring organization behind the multi- year partnership, is Florida's oldest sports organizing and management group and has been the guiding force behind not only the Pro Watercross' presence in Pensacola Beach, but many of the city's other iconic events such as the Charity Challenge and the Deer Dodge 50K marathon. "I am confident in the direction that Pro Watercross is taking, and we are continuing to invest in growing our footprint in North America and around the world while working to discover and groom the next generation of watercross racers," said Nick Handler, man- aging director of Pro Watercross. "The tour's growth is exciting to be a part of for our community," Palmer added after the signing of the three-year contract between Pensacola and Pro Watercross. "The 2017 Pro Watercross National Tour and Championships season is already shaping up to be a banner year, with tough competi- tion, new events and features to help grow participation in the sport, and a lot of excite- ment for both the athletes and the fans," Han- dler said. PRO WATERCROSS TOUR ANNOUNCES 2017 DATES Pro Watercross is always working to improve the tour looking for new venues and ways to advance the sport, and the tentative 2017 national tour dates have been announced, as well as the dates for Pro Watercross sanc- tioned events. The Pro Watercross World Champi- onships will be held starting Oct. 27, with Watercross, HydroFlight, HydroDrags and Wakeboard as confirmed competitions. PSB DIGEST PWC sales maintain growth in November ROUTE 1 CONTINUED FROM COVER Left: ATVs and side-by-sides were used during the Route 1 Motorsports groundbreaking to showcase their capabil- ity and to make the event unique. Right: Route 1 Motorsports owners Willy Carmine and Kellie Yeasley broke the ground on their new Malabar, Florida, dealership on Nov. 15. PRO WATERCROSS TENTATIVE NATIONAL DATES May 6-7 — Pensacola Beach, FL May 13-14 — Panama City Beach, FL June 10-11 — Lewisville, TX June 17-18 — Sparks/Reno, NV July TBA — Atlantic City, NJ Aug. 12-13 — Hartwell, GA NATIONAL CHAMPIONSHIPS Aug. 19-20 — Charleston, WV WORLD CHAMPIONSHIPS Oct. 27-Nov. 5 — Naples, FL Sales of PWC models including the 2016 Yamaha VXS remained positive in November, at both wholesale and retail levels.

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