Issue link: https://read.dmtmag.com/i/208245
4 • November 4, 2013 • Powersports Business NEWS www.PowersportsBusiness.com RATE THE FOLLOWING ww TO WHAT EXTENT HAVE YOUR CONCERNS ABOUT THE FOLLOWING EXTERNAL RISK FACTORS CHANGED OVER THE PAST FEW MONTHS? 100% 3% 90% 80% www.powersportsbusiness.com Editorial and Sales: 800.848.6247 Subscriber Service: 866.238.3237 EDITOR IN CHIEF: Dave McMahon 763/383-4411 (dmcmahon@powersportsbusiness.com) MANAGING EDITOR: Liz Keener 763/383-4413 (lkeener@powersportsbusiness.com) SENIOR EDITOR: Tom Kaiser 763/383-4424 (tkaiser@powersportsbusiness.com) ASSOCIATE DIGITAL EDITOR: Christopher Gerber 23% 40% 20% 49% 35% 29% 29% 24% 23% 6% P&A Sales 0% PRODUCTION ARTIST: Kelsey Houle (khoule@epgmediallc.com) 8% 7% Overall Business Conditions New Unit Sales Used Unit Sales 13% Service Department 52% 39% 44% 10% 6% F&I 14% 14% 0% BRP INC. KEY TAKEAWAYS ASSOCIATE PUBLISHER David J. Voll 763/383-4421 (dvoll@ridermagazine.com) PRODUCTION SPECIALIST: Cherri Perschmann POLARIS INDUSTRIES KEY TAKEAWAYS GROUP SENIOR MARKETING MANAGER: Kathryn Knudson GROUP SENIOR SALES SPECIALIST: Bernadette Wohlman CEO: Mark Adams SR. VICE PRESIDENT/FINANCE AND OPERATIONS: Gerald Winkel SR. VICE PRESIDENT/MARKET DEVELOPMENT: Joanne Juda-Prainito VICE PRESIDENT/OPERATIONS AND HUMAN RESOURCES: Mary Jo Tomei CONTRIBUTORS: COLUMNISTS: Hal Ethington, Steve Jones 90% 80% CANADIAN RETURN ADDRESS: EPG Media, LLC, 4960-2 Walker Road, Windsor, Ontario N9A 6J3. Publication Sales Agreement #40012332. EDITORIAL: All manuscripts, materials, photographs and artwork submitted are at mailer's risk and must include self-addressed envelope with sufficient postage for return. Send editorial materials to EPG Media, LLC, 3300 Fernbrook Lane N, Suite 200, Minneapolis, MN 55447, 763/383-4400. No responsibility will be assumed for unsolicited materials. Powersports Business is a registered trademark of EPG Media, LLC. Copyright 2013 by EPG Media, LLC. All rights reserved. Reproduction in whole or part is prohibited unless expressly authorized by publisher. 17% 16% 2% HARLEY-DAVIDSON INC. KEY TAKEAWAYS Although results were somewhat skewed in that only 11 percent of respondents were Harley dealers, there was strong optimism among this group concerning the 2014 lineup. Q3 sales versus the prior year appeared strong, while expected sales over the next 12 months were also favorable. Not surprisingly, Harley scored best in terms of dealer perception of quality for the 2014 product lineup. WINNING DEALERS The following dealers who completed the PSB/ RBC Capital Markets Q3 Dealer Survey were selected at random to win a $100 Best Buy gift card, courtesy of RBC Capital Markets: Jeff Cheek, Bruce Rossmeyer Harley-Davidson, FL Bob Ellis, Empire Cycle & Powersports, WA Larry Miller, Team R&S West, NM Craig Deghand, Salina Powersports, KS Rob Racine, J&B Cycle and Marine, ONT To participate in the quarterly surveys, dealers should send an email to dmcmahon@powersportsbusiness.com. OTHER KEY TAKEAWAYS The Honda Pioneer side-by-side received strong responses for recent sales and expectations over the next 12 months, while performing well in dealer quality. The Yamaha Viking also appeared to have solid sales, although the quality ranking was not as high. Conversely, both the Yamaha Rhino (no longer being manufactured) and the Arctic Cat Prowler have seen recent trends and expectations erode. Honda FourTrax performed well in ATV. PSB LEVELS BY LINE OF BUSINESS? 1% 1%1% 24% 1% 3% 7% 2% 6% 3% 8% 7% 4% 6% 10% 5% 46% 27% 34% 14% 19% 24% 20% 28% 23% 20% -30% or worse -20% -10% -5% Flat +5% +10% +20% +30% or better 23% 18% 22% 20% 11% 12% 10% 2% 6% 3% 2% Side-by-Sides ATVs Heavyweight Sport bikes Off-road Motorcycles bikes 8% 4% Scooters 3% PWC 9% 70% 60% 42% 50% 36% 43% 5% 5% 62% 12% 8% 60% 55% 50% 37% 48% Scooters PWC 49% N/A Too low About right Too heavy 30% 20% 49% 57% 35% 20% Side-by-sides ATVs Heavyweight Sport Bikes Off-road Motorcycles bikes DEALERSHIP PROFIT MARGINS IN HOW HAS YOUR BUSINESS OUTLOOK Q3 2013 VS. Q3 2012? CHANGED COMPARED TO SIX MONTHS AGO? Significantly worse 3% Significantly better Significantly worse 3% 4% Significantly better 6% Somewhat better 26% Somewhat worse 29% Significantly better 5% Somewhat better 23% Somewhat worse 24% Somewhat better 23% REPRINTS: For more information on e-prints or reprints from Powersports Business, contact Bernadette Wohlman, 800/848-6247 x2464. Printed in U.S.A. About the same 35% About the same 41% About the same 45% Source: Powersports Business / RBC Capital Markets Q3 Dealer Survey P01x05-PSB14-News.indd 4 75 ity Chec of 20 deale inn "A fin sto wh sco Du Ap Snowmobiles VS. Q3 2012? Somewhat worse 28% po Cu air the vid cha and ent roo ou the bef 39% 17% CUSTOMER TRAFFIC IN Q3 2013 Significantly worse 5% P the AZ em op 57% 38% 74% 64% 40% 0% Snowmobiles 37% 2% 16% 10% 12% 26% 9% 80% 32% 13% 18% 90% 47% 37% Rec 50 100% 4% 2% 4% 9% 25% 39% 25% 20% 10% 6% 9% 10% 40% 30% 2% 2% 8% 39% 50% 0% CUSTOMER SERVICE: Visit www.powersportsbusiness.com, email powersportsbusiness@cdsfulfillment.com, call 866-238-3237 or write to Powersports Business, PO Box 5858, Harlan, IA 51593-1358. 14% 8% HOW WOULD YOU CHARACTERIZE YOUR CURRENT INVENTORY 70% 60% POSTMASTER: Send address changes to Powersports Business, P.O. Box 5858, Harlan, IA 51593-1358. Significantly more concerned 20% BY LINE OF BUSINESS OVER THE NEXT 12 MONTHS? 100% SUBSCRIPTION INFORMATION: Free to qualified members of the motorcycle, all-terrain vehicle, snowmobile and personal watercraft industries. Annual subscription rate is $56 per year for U.S residents, $76 for Canadian residents and $96 for residents in other countries. All paid subscriptions must be paid in advance and in U.S. funds only. Somewhat more concerned 33% WHAT TYPE OF GROWTH ARE YOU EXPECTING DEALER ADVISORY BOARD: Hooksett Kawasaki-Polaris, Jim Whalley; Hacker's Yamaha & Honda, Rick Hacker; Honda/Polaris of Lubbock, Morris Baker; All Action Water Sports, Ray Leps POWERSPORTS BUSINESS (ISSN #1522-7944) is published 15 times per year – monthly except twice in May and December, the Market Data Book in September – by EPG Media, LLC, 3300 Fernbrook Lane N #200, Plymouth, MN 55447. Periodicals postage paid at St. Paul, MN and additional mailing offices. Third quarter sales for Can-Am in side-bysides and ATVs appear very healthy. Maverick and Commander were in the top 5 for recent sales growth, while expectations over the next 12 months were favorable for Maverick. The Can-Am Outlander also had a strong quarter, and dealer perception of the Renegade and Outlander remain very positive. The big surprise was the Can-Am Spyder, as dealers were very optimistic about sales over the next 12 months and rated the 2014 product quality second only to Harley-Davidson. Polaris' RZR and Ranger side-by-side vehicles are firmly entrenched as the category's best sellers with 50 percent and 49 percent, respectively, of responding dealers stating that those models are one of their top-3 selling side-byside products. Looking ahead, dealers' NTM [next 12 months] expectations are similar to 3Q13 sales, with growth coming to both of Polaris' side-by-side brands with marginally better expectations for Ranger. Polaris' 2014 also has a perceived quality advantage over all of its competitors which may lead to increased sales efforts on the part of store workers, further driving NTM sales higher. The outlook for Victory motorcycles looks favorable, which could be a surprise kicker for near-term earnings. As for Indian, the number of responses were relatively low. Nevertheless, of the six dealers that responded to the question on sales About the same g s al t t ts/ /or ues .S. nt itic en rke isin ice cos ility and l iss he U loymetlook pol onm igh/r ne pr ma ng lab .S. envir H soli p ou ing mic tica of t nci vai U Em ous Econo poli tside ina a ga F H ou typical seasonal winter last year. While dealers are somewhat optimistic on their outlook for motorcycles, current sales appear to have softened and there are concerns with inventory. NATIONAL ACCOUNT MANAGER Mark Rosacker 763/383-4433 (mrosacker@snowgoer.com) Significantly less concerned Somewhat less concerned 61% 30% 20% 45% 57% over the next 12 months, four expect sales to increase 30 percent and one dealer expect sales to increase 20 percent. ADVERTISING SALES DIRECTOR Allison Gruhn 763/383-4467 (agruhn@powersportsbusiness.com) 6% 27% 40% SURVEY COVER CONTINUED FROM GROUP PUBLISHER: Amy Collins 1% 8% 11% 35% 37% 50% 16% 10% 7% 60% Very weak Somewhat weak Average Somewhat strong Very strong 40% 20% 20% 70% 46% 30% 18% 80% 34% 29% 1% 90% 21% 60% 50% 100% 8% 17% 37% 70% SENIOR ART DIRECTOR: Dodi Vessels PRODUCTION MANAGER: Angela Schmieg 24% 32% 1% 2% 5% 6% 10/30/13 11:58 AM the the # # # # Th ha spe wi