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PSB FOCUS 16 • May 4, 2015 • Powersports Business www.PowersportsBusiness.com This issue: ATV Next issue: Executive of the Year 1.9% 1.1% 0.8% 2.7% 0.9% 0.9% 2.7% 2.9% 4.2% 0.9% 4.0% 3.2% 2.1% 1.4% 1.6% 1.5% 2.1% 4.5% 3.2% 1.7% 3.6% 5.5% 4.0% 2.3% 2.6% 3.6% 2.6% 1.5% 6.3% 3.7% 1.9% 1.5% 1.3% 1.5% 2.2% 2.0% 2.5% 2.4% 2.7% 3.3% 2.8% 3.3% 2.7% 2.5% 2.6% $128 $109 $206 $228 $273 $81 $156 $177 $224 $46 $67 $50 $0 $50 $100 $150 $200 $250 $300 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 MULTI PURPOSE-2P MULTI PURPOSE SPORT ATV ACCESSORY SALES YEAR 2014 ACCESSORIES AS PERCENT OF UNIT SALE, BY STATE (ACCESSORY SALES $/UNIT SALES $) MULTI PURPOSE, MULTI PURPOSE-2P AND SPORT MODELS SOLD IN 1,176 DEALERSHIPS; US: 117,523 UNITS, $21 MILLION IN ACCESSORY SALES, $756 MILLION IN UNIT SALES A PROFIT MUST AVERAGE DOLLAR ATV ACCESSORY SALES PER UNIT TREND: TWELVE YEARS, 2002 THROUGH 2014 THREE MARKET SEGMENTS: MULTI PURPOSE-2P, MULTI PURPOSE AND SPORT Source: CDK Global Source: CDK Global In Tennessee, when the average ATV is sold, 6.3 percent of the sell- ing price comes from the purchase of accessories on the unit. On the other end of the ATV accessories spectrum, in California, only 0.8 percent of the selling price is derived from the sale of acces- sories on the average unit. Exclusive data from CDK Global Recreation analyst Hal Ething- ton and the CDK team takes a state-by-state look at the average percent of the selling price created by selling accessories on all ATV units sold at retail. The states with the most successful ATV accessory dealers don't let temperatures or length of the riding season get in the way of adding lines to their purchase tickets. Louisiana sits just behind Tennessee, with 5.5 percent, and Minnesota and Alaska are next at 4.5 percent. Colorado (4.2 percent), Montana (4.0), Wisconsin (4.0), Alabama (3.7), Michigan (3.6) and Arkansas (3.6) complete the top 10. We wanted to present the CDK Global Recreation data in charts as large as possible in this edition, so you'll find more charts on addi- tional pages throughout the Focus section. BUYING PATTERNS The chart on Page 18 tracks the buying patterns of five generations of ATV buyers from the year 2000 through the year 2015. The old- est generation (#1) was born between 1911-1930, and the youngest generation (#5) was born between 1991-2010. Generation #1 was still active in the year 2000 when their ages varied between 70 and 89. In that year they comprised 16 percent of all buyers. Generation #5, the youngest, begins to appear in 2009 when the oldest of that generation was 18 years old. In that year they repre- sented 0.5 percent of customers. But, by the year 2015, this genera- tion had grown to 9 percent of all customers. Generation #3, now 45-64, and Generation #4, now 25-44, together held 82 percent of all buyers in the year 2000. While shift- ing places as Generation #4 replaces Generation #3, they held a total of 83 percent of all buyers in the year 2015. Studies show that generations vary widely in how they respond to social (and sales) environments. This chart, combined with the knowledge of these generational differences, will be useful in the training of salespersons, and the designing of sales systems in the powersports vehicle market. See Buying patterns, Page 18 ACCESSORIZING: ACCESSORIZING: ACCESSORIZING: ACCESSORIZING: ACCESSORIZING: ACCESSORIZING: