Issue link: https://read.dmtmag.com/i/217512
32 • December 2, 2013 • Powersports Business SNOWMOBILE www.PowersportsBusiness.com High Command, with P&A in high demand Young Canadian snowmobile supply company already experiencing growth this season BY ANDY SWANSON CONTRIBUTING WRITER When Todd Billinger started High Command Distributing in 2009, the injection mold business was reeling. He was selling manufacturing equipment to companies that made plastic parts — primarily businesses that were part of the automotive supply chain. But with the economy tanking, so was the industry that builds cars and trucks, and many of his customers were shutting down. So Billinger decided that he needed to diversify. Based about 50 miles north of Toronto, High Command Distributing sells Lucas Oil products and Sledez brand snowmobile lifts and dollies, plus a handful of specialty marine products to about 15 stores in central Ontario. Like most other businesses in the snowmobile market, the weather, economy, snowmobilers and dealerships affect the success of High Command Distributing. Last winter was flat for the company due to poor snowmobiling conditions in its territory during the 2012-13 season, Billinger said, which resulted in sales down at least 10 percent compared to the previous winter. This year, sales are already up 50 percent, with some dealers taking early orders. "We're up where we were all of last season, and we aren't even in the season yet," said Billinger, who added that he's mystified by the massive increase. "I have no idea. It might be because everyone's been hearing the rumors that we're supposed to get hammered this winter up here. Or old stock is finally out, and guys that let inventory sit for so long actually have to order new product again." A battle in selling "higher-priced" aftermarket injection oil like Lucas products, Billinger said, is that snowmobile manufacturers have put fear in consumers that their snowmobiles won't have warranty coverage if they don't run oil that has the same label as what's on their machine's snow flap. This misconception means that the bulk of High Command's oil customers are owners of newer snowmobiles that no longer have factory warranty coverage. "Basically my job is to build the powersport and marine side of things for Lucas here in Ontario," Billinger said. "People know Lucas for automotive products, and we're just trying to get the word out on the powersport side of things." Earning a living four years ago when many of his equipment customers were closing their shops was tough, but at least now work is more fun. "I started to do something that I enjoyed instead of being miserable and not making any money. I might as well be happy and not making any money," Billinger said (laughing). Billinger, 43, wears many hats as the sole employee, and rounding up dealers happens the old-fashioned way. "Getting in my car, banging on doors and mass emails. Anything I can do, basically," he said. A good-oldfashioned winter would help, too. "It's all based on how the season's going to be," he said. "With my stuff we don't put the pressure on the dealers. We don't have it where you have to buy a maximum or a minimum. It's based on how much snow we get up here. It's been positive so far." PSB Andy Swanson is managing editor of Snow Goer magazine, a PSB sister publication. DIGEST Divas to sponsor Eagle River race Oregon, Wis.-based Divas SnowGear announced that is has become the AMSOIL World Championship Snowmobile Derby's title gear sponsor for the next three years, alongside Fly Racing. The Eagle River, Wis., event is set for Jan. 16-19. Divas SnowGear staffers have a long history of riding the Eagle River 500 trail system, as well as attending the race. Now the four-year-old company is a sponsor. Fans can expect ticket giveaways and VIP event contests from Divas. CAT SLED SALES RISE 5% IN Q2 Arctic Cat's snowmobile sales in the fiscal 2014 second quarter increased 5 percent to $135.4 million, up from $128.6 million in the prior-year quarter. P32-PSB15-Snow.indd 32 (From left) Ron Bentzinger, snowmobile product manager for Western Power Sports, Dave Consoer, sales & marketing manager for the Eagle River Derby, and Wendy Gavinski, president of Divas SnowGear, finalized the deal. "We are pleased with consumers' early season retail response to our 2014 model year snowmobile lineup. In addition, our expanded relationship with Yamaha continues to proceed smoothly. We expect to begin shipping a larger number of snowmobiles to Yamaha in our 2014 fiscal third quarter," Arctic Cat chairman and CEO Claude Jordan said. For the 2014 model year, Arctic Cat launched 10 snowmobiles, including the allnew ZR 6000 El Tigre high-performance sled, and new snowmobile engine options from Arctic Cat and Yamaha through an engine supply agreement. Arctic Cat also introduced its first designed and built snowmobile engine, the 6000 C-TEC2, which is a powerful, lightweight and fuel-efficient two-stroke that enables the company to enter the large 600cc snowmobile market segment that now accounts for 18 percent of the snowmobile industry. ISOC ADDS RAM TRUCK AS SPONSOR Officials with International Series of Champions (ISOC), the producers and promoters of AMSOIL Championship Snocross, announced Ram Truck as the presenting sponsor of the 2013-14 series tour, which started in November at Spirit Mountain in Duluth, Minn. AMSOIL Championship Snocross' high proportion of pickup truck ownership amongst its audience (83.7 percent, with 68.9 percent owning a trailer as well) attracted Ram as the series' presenting sponsor. "Ram Truck is pleased to be able to expand our relationship with ISOC," said Reid Bigland, president and CEO of Ram Truck Brand, Chrysler Group LLC. PSB 11/25/13 11:39 AM