Issue link: https://read.dmtmag.com/i/303681
FOCUS PSB ATV www.PowersportsBusiness.com Powersports Business • May 5, 2014 • 25 24 • May 5, 2014 • Powersports Business www.PowersportsBusiness.com lot of first adopters, which is standard for any kind of product that is as new and as unique as ours," Jenkins said. "We're talking about higher net worth individuals, not necessarily ultra-high net worth individuals, though we do have some of those." STREAMLINING MSRP With an MSRP starting around $42,000, the Quadski isn't designed for the average powers- ports consumer, but it does appeal to some who have the cash, are interested in its unique abili- ties and seek high-quality machinery. "When you're paying over $40,000 for a Quadski, you're paying for the quality and level of engineering that has gone into the product and the fact that you can't get a Quadski or anything like it anywhere else in the world," Jenkins said. Since the launch of the Quadski, its MSRP has always been "around" $40,000-$42,000, allowing dealers to add margin in, especially as demand is higher than supply, but Gibbs is looking to streamline MSRP this year. On top of the base model, which comes in red, yel- low, blue, silver and black, Gibbs has added premium colors such as green and white to its lineup, which come at higher prices. The company is also offering a premium-priced color-matching service for customers who want their Quadski to match their yacht or to come in another color not already offered. "Later on this year, once we have a clear price structure for the different options that we're bringing out, the color options and some of the additional options we have in plans, we will formalize the MSRP a bit more," Jenkins said. "Though we're finding that because the demand is outstripping the supply of the Quad- ski at the moment for most dealers, they're able to set prices themselves more than most other manufacturers and products have." While Gibbs has no plans to produce any- thing but a premium product, the company's later models may have prices lower than the current Quadski. "We're never looking to compete on the level of say the Spark or those kinds of prod- ucts because we're not that kind of cut-price product," Jenkins said. "We're committed to quality; we're committed to make sure that our product can perform in the way we envi- sion in salt or freshwater, etc. But having said that, we haven't ruled out the possibility that in the future with volumes and with other things that the price may come down. But we're always going to occupy the upper half at least of the market." INCREASING PRODUCT KNOWLEDGE For now, Gibbs is focused on reaching its 2014 sales goal by increasing its dealer network and process and after the sale. "It's important that the dealership is able to give the kind of customer experience that we're expecting for the type of clients and customers that we attract," Jenkins said. "We're not nec- essarily talking about the majority of people when it comes to our products, being slightly higher end and higher price. We're talking about people that are generally used to getting higher levels of customer service, and we want to make sure that the dealerships we partner with to build the market have those same val- ues engrained in their business plan." Gibbs requires each dealership to carry at least two Quadskis, though many order more, so they can sell directly from the floor and bring units to shows. At least one technician from each store also must be trained on diagnosing and repairing the Quadski. "There are special tools that they need in order to service the Quadski. We've tried to keep that to a minimum. There aren't many, but there are some, especially diagnostic equip- ment for the engine, which is proprietary to BMW. There are certain requirements that we make sure they have, so they can adequately service our customers," Jenkins explained. DEALER FEEDBACK So far, the feedback from Gibbs' dealers has been positive, as the Quadski is not only draw- ing customers who are genuinely interested in the vehicle, but it's also attracting gawkers that may turn their attention to something else in the dealership. "We've had plenty of dealers that have really enjoyed the pull factor the Quadski has of hav- ing people come to their dealership to see the Quadski," Jenkins said. "Even though some of those people may not buy a Quadski, they're in the market to buy powersports, and they come into that dealership because the dealership has a Quadski. They'll maybe end up buying other products they have on the floor." Already-established Quadski dealers will also be first in line to receive orders of future amphibians the company is planning to release starting in the next 18-24 months. "The Quadski's never been the end game for us. We have a full range of vehicles, all with the capability to perform on land and water with great style and with great capability. So our plan is always that we're bringing on dealers and business partners right now in order that in 10 years time we have a vibrant market in amphibians, that we're selling all different kinds of products that are able to perform both on land and on water," Jenkins said. BIG SALES GOALS Sales through Gibbs' first full year totaled only a few hundred units. However, with retooling increasing efficiency at its 150-employee plant, Gibbs expects to be able to produce and then sell a significantly higher number of units in 2014. "This year our goal for sales is around 1,500 units," Jenkins said. "We have stretched goals above that that we're pretty enthusiastic about hitting, providing that we continue the kind of performance we've been seeing. And out of that 1,500, we're going to have approximately half as domestic sales, and the other half will be international." Each Quadski takes about three days to complete, including the composite construc- tion of the hull, which requires the largest amount of time. But even with that, the factory has the capacity to produce up to 3,000 units per year and the potential to increase that num- ber by outsourcing some assembly if necessary. Sales so far have gone to those who have bought Quadskis because they're early buyers of new technology, or they have shorefront property, or they want to use the Quadski as a yacht tender. "At the moment we're finding that it's a QUADSKI CONTINUED FROM PAGE 21 A complete Quadski takes about three days to build, including steps such as the composite construction of the hull, attaching the Gibbs power takeoff unit (PTU) to BMW's K1300 engine, gel-coating the body and quality control. "We've had plenty of dealers that have really enjoyed the pull factor the Quadski has of having people come to their dealership to see the Quadski." Graham Jenkins, Manager of communications, marketing and PR, Gibbs Sports Amphibians "The Quadski's never been the end game for us. We have a full range of vehicles, all with the capability to perform on land and water with great style and with great capability." Graham Jenkins P16x29-PSB6-Focus.indd 24 4/23/14 10:17 AM