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OPINION FROM THE EDITOR www.PowersportsBusiness.com Powersports Business • January 25, 2016 • 11 We provide an extended look at the Q4 2015 Powersports Business/RBC Capital Mar- kets dealer survey in this edi- tion. As you'll see, the retail environment at our dealer- ships from October through December, all in all, was far from rosy. Of course, when I saw a story on the news of a guy and his pals water ski- ing and wakeboarding on Christmas day on a Spicer, Minn., lake, I knew sales results were not going to be kind to snowmobile dealers. But it's not just the sled guys facing an uphill battle, folks. Throw in a look at the October (0.5 percent increase), November (3.8 percent decrease) and December (2.0 percent decrease) year-over-year overall sales data from more than 1,500 dealers who use the Lightspeed DMS, and it paints a picture of too many dealers with too much inventory in a variety of segments. Add in the idea of a slow start to the 2016 economy, and we might have a storm on our hands again. Unfortunately, it doesn't add up to being a season-saving snowstorm. Word on the street is that OEMs are continuing to seek new points in some areas in spite of (because of?) the lack of business being done by their current dealerships. Next month, we'll share a story about one longtime dealership's new neighbor selling the same brand — less than a mile away! WELCOME ABOARD You'll notice some new contributors in this edition, so be sure to provide them with an industry welcome. Statistical Surveys, Inc., has been a longtime data provider in RV and marine, and they launched their powersports business last year at AIMExpo. You'll see their contributions this month with an impressive and educational look at the side-by-side market. And while we here at PSB provide the industry with an overall, nationwide look at the retail performance at various times throughout the year, Stat Surveys can help your dealership get dialed into sales data within your local region. Want to know what's selling locally? Founder Tom Walworth and national sales manager Scott Stropkai can provide you with insight via tools that we look forward to sharing with you each month. Also, Mark Mooney has been a familiar face to PSB fans for years, most recently as a blogger on our website and as a presenter at the Powersports Business Institute @ AIMExpo. Now, he's making the move to the print version of PSB as a columnist. Mooney, of course, owned and operated his own dealership in the Bay Area, and has more than 30 years in a variety of industry roles. He decided to hang out his own shingle in recent years, and conducts training at dealerships throughout the country for all departments. He's been one of the highest rated presenters at the PSB Institute @ AIMExpo for the past two years. Speaking of the PSB Institute @ AIMExpo, another of our presenters will be providing his dealership knowledge on the print pages of PSB as our F&I col- umnist. Tommy Ady, who recently joined Gart Sutton & Associates, will provide your F&I department staff with insights and intelligence that will make you pay closer attention to your profit-driving department. Also, those dealers who attended the Powersports Business Institute @ AIMExpo — and there were more of you in 2015 than ever, so thanks! — can be on the lookout for their certificates from the classroom ses- sions. Of course, you needed to fill out the form say- ing you would like the certificate. But those who did should see them in the mail this month. UNFILTERED, AS ALWAYS Here's what a few of the 123 dealers from 42 states and Canada who took the Q4 survey said about the current state of the retail industry at their dealerships. Again, the survey takers are franchised dealers only that sell at least one of the following brands: Aprilia, Arctic Cat, Bennche, Beta, BMW, Brutus, Can-Am, California Sidecar, CFMOTO, Champion Trikes, Cub Cadet, Ducati, EBR, Eton, GEM, Genuine Scooter, Hammerhead, Hannigan Trikes, Harley-Davidson, Hisun, Honda, Husqvarna, Hyosung, Indian, John Deere, Joyner, Kawasaki, KTM, KYMCO, Landmaster, Moto Guzzi, Motor Trike, Motus, MV Agusta, Piaggio, Polaris, Roadsmith Trikes, Royal Enfield, Sea-Doo, Ski-Doo, Slingshot, Suzuki, SYM, Triumph, Ural, Vespa, Victory, Yamaha and Zero. Dealers can send me an email to get added to the list of survey takers. "This fourth quarter has been probably the worst I've seen in my 35+ years in this industry." "Looks good in an election year." "Not seeing much growth; the industry is flat." "Door swings are down." "The few areas that have been good are KTM and Husqvarna bike sales, Timbersled and the new Honda Pioneer 1000. Polaris sales have tanked, and dealers are struggling under massive amounts of inventory." "Polaris and Can-Am stocking orders encourage discounting. BRP is setting too many dealers up." "Way too many dealers are selling at invoice less rebates. We won't! We get punished and the discount- ers get a gold star. In Q4 2015 floor traffic has slowed to a crawl. The industry is changing." "Harley-Davidson moving to direct distribution in Canada is awesome. Price stability is helping sell more units!" Even more dealer feedback from the survey will be available in this month's digital edition. PSB Dave McMahon is editor in chief of Powersports Business. Contact him at 763/383-4411 or dmcmahon@powersportsbusiness.com. 1. Polaris recalls 2,230 units 2. Polaris announces new off-road units 3. Polaris acquires aftermarket snowmobile brand 4. Polaris lowers 2015 full-year guidance 5. Kawasaki recall targets 19K Teryx models 6. Distributor acquires helmet brand 7. Harley-Davidson dealership on the 101 in Calif. closes 8. Yamaha starts production on a new sport side-by-side 9. HISUN taking giant step with Baja 1000 10. Electric vehicle company delivers first motorcycle 11. Polaris announces snowmobile recall 12. Honda announces motorcycle recall 13. Minnesota manufacturer shares profit with employees 14. Polaris expands consumer finance program for off-road, snowmobiles 15. KTM issues motorcycle recall The headlines above belong to the most frequently viewed articles from Powersports Business' three-times weekly e-news during the Dec.13-Jan.4 period. The number is based on the percentage of e-news viewers who clicked on the article's headline. To subscribe to e-news, go to www.powersportsbusiness.com/newsletter-signup. WHAT'S THE HOTTEST INDUSTRY TOPIC? Powersports Business blog ONLINE WITH POWERSPORTSBUSINESS.COM Leading industry executives and dealer consultants are among the contributors to PSB's blog. See below for recent blogs. Outlook not exactly strong to start year Visit powersportsbusiness.com/blogs Are you connected? Powersports Business saw a tremendous amount of social media growth in 2015, with a 27 percent increase in overall engagement. Our Facebook page was up approximately 26 percent since last year and our Twitter page saw a 28 percent increase! Are you following us? Visit www.facebook.com/ PSBMagazine and twitter.com/PSBMagazine to start today. Finally, our Google+ page grew by more than 100 percent — 101.7 percent to be exact! Follow/subscribe and stay "in the know" in our industry. COLLEEN MALLOY Director of Marketing, ARI It's the start of a new year, and it's the ideal time to reflect on the perfor- mance of your sales and marketing for 2015 and to create your game plan to pump up the performance of all of your initiatives for the 2016 selling season. CHRIS CLOVIS Vice President, EagleRider Motorcycles Unlike automotive, the motorcycle industry has a love/hate relationship with test rides: Manufacturers love them, dealers hate them and custom- ers are indifferent toward them. They're the key to a sale but usually aren't worth the risk. LAURA REINDERS Product Marketing Manager, DX1 By utilizing a search marketing strat- egy that includes SEO, SEM and remarketing, you cast a wider web net to capture and drive more relevant traffic from new sites visitors as well as bring back those who formerly visited your site. FORREST FLINN Managing Partner, Powersports Management Concepts Buying a dealer management system is one of the most expensive decisions that your dealership will make. This decision should not be taken lightly. The planning and homework that you do on the front end may save you much time, energy and money. We provide an extended look at the Q4 2015 Business kets dealer survey in this edi- tion. As you'll see, the retail environment at our dealer- ships from October through DAVE McMAHON Certificates for those dealers who attended the 2015 Powersports Business Institute @ AIMExpo sessions and completed the form have been mailed.