Issue link: https://read.dmtmag.com/i/626951
ATV/UTV This is the first article that Statistical Sur- veys Inc. will be writing for the powersports industry. We have been reporting on the recreational vehicle, marine, trailer and the manufactured housing industry for 58 years. Our goal in the powersports industry is to supply powersports dealers with market data tools to help them understand their own indi- vidual market and maximize their potential. It is a fun industry, but it's a lot more fun when you are making money. We will be discuss- ing the market around the 4 Ps of marketing: product, place, price and promotion. Our cus- tomers have access to these tools for their local markets to make the best decisions that will improve inventory turns and profitability. While there are numerous different com- ponents to focus on for your market, one criti- cal item to keep in mind is the retail price of the units moving in your area. Everyone who walks into your dealership probably wishes they could drive off it while on a high-end touring bike with all the bells and whistles — but not everyone can write that check. While the showroom layout and product designs may change, the size of the wallet your cus- tomer is carrying is something you need to be keenly aware of in this industry. Price information within retail sales data is from the negotiated states before taxes, trade- in and fees between the dealer and the con- sumer, and is based on Department of Motor Vehicle records received from the states before taxes, trade-in, fees, etc. Here at Statistical Surveys, we take the all the price data we receive — along with the model, series and product type from the DMVs across the country — and calculate an average retail price based on type, series and engine displacement. That then allows us to place it in a certain "price bucket." These "price buckets" are designed to establish a benchmark in your market as to whether low-, middle- or high- price units are moving in your area. In many instances (I think you know where we are going), the demand at different price points can shift drastically depending on the market that you service. That is why knowing the price groups that move in your market is essential to stocking your lot with product that turns in your market. Each dealer in a market should have a clear understanding of that market, and a big part of that knowledge is being intimately familiar with the price benchmarks and making sure you are penetrating each one. You can look at any product type — whether ATV, cruiser, sport bike, scooter or enduro — and find that all areas of the country are unique in the types of units sold and how much they sold for. Let's say it again: Understanding your particular market is essential to the health of your dealership. As an example, consider the growing UTV market, a particularly hot segment that has increased 121 percent in registrations since 2011. It's definitely a market with legs. If you were only to believe what you hear about national market, though, these legs might shackle in your sales pitches. Why? Because many people believe that it's only the $12,000-$15,000 point of the UTV market that is moving. And that is true to a point. Let's review the $12,000-$15,000 price point at four levels: national, state, region and dealer. Nationwide, through the first nine months of 2015, that price point was up 6.78 percent compared to the same period in 2014 and represented 31 percent of the market. In the Texas market, that price point rep- resented 30 percent of the market and was up 10 percent over the same time period. In the Dallas market, the price point was 28 percent of the market and was up 16 percent compared to the year-ago period. We selected a dealer in the Dallas market as an example. That price point was the No. 2-sell- ing price point in Texas (as opposed to being No. 1 nationwide) during the time period. In Dallas, the price point was up 33 percent when we looked at first nine months of 2015 compared to first nine months of 2014. The No. 1 selling price point on the dealer's lot was $6,000-$9,000, and it was up 43 percent in the first nine months of 2015 to compared to the 2014 period. You can review the chart to look at other examples of differences in the market. A dealer needs to manage his or her business based on what is happening in the particu- lar market! We have witnessed in the other industries that we report on that if a dealer stocks what sells in their market, the inven- tory turns will improve. The profit margins should improve as well, since the dealer will not have to discount prod- uct that they purchased that is not a good fit for the dealer's customers. The dealer that we reviewed for this article was seeing growth in the low-, mid- and high- end markets of the their territory and was stocking product at a different level than the region, state and national levels. Their total sales growth was above the region, state and national levels. The dealer was offering the correct product for their market. PSB Tom Walworth, president of Statistical Sur- veys, is a 37-year veteran of the Grand Rapids, Mich.-based firm. Scott Stropkai is the com- pany's national sales manager for powersports. Contact them at www.statisticalsurveys.com or 616/281-9898. Chandler, Ariz.-based DragonFire and Weller Racing have teamed up to create a complete performance package for the Polaris RZR. "Everything you need is in one box, pre- tuned and ready to go," DragonFire social media manager Chris Moore said. "Team DragonFire and the masterminds at Weller Racing have spent months on the track and in the shop dialing in this setup. Strategic focus on key components enable us to not only extract every bit of power out of the RZR 1000 motor, but translate it to the ground efficiently." The heart of the new DragonFire Per- formance Kit by Weller Racing combo is DragonFire's proven PyroPak fuel manage- ment system. "More efficient combustion combined with increased airflow equal more horse- power," Moore added. Since engines are essentially air pumps, increased air flow equals even more per- formance, so a fully serviceable high-flow AIRAID air filter working in conjunction with a pre-filter keeps out sand and other par- ticulates without restricting the flow of air. Weller's secrets for converting horse- power into traction start with adjustable shift weights, which make fine tuning power pulses possible. Beefier primary and second- ary clutch springs offer improved shift points. ITP RACERS POST BANNER YEAR ITP ATV and side-by-side racers had a banner year in 2015, winning 17 total championships in four different national racing series. "ITP ATV and SxS racers had an out- standing racing season, winning numerous championships and class titles," said Rhett Turpin, ITP director of sales & marketing. "From motocross to the desert to the tight, tree-laden hare scramble courses, our rac- ing team competed for wins all across North America. These major victories, and the other competitive finishes we had in 2015, continue to prove that ITP tires are the brand of choice for those seeking the ultimate traction in their pursuit of a championship." PSB DIGEST You can't sell to a market you don't know 18 • January 25, 2016 • Powersports Business www.PowersportsBusiness.com TOM WALWORTH & SCOTT STROPKAI STATISTICALLY SPEAKING DragonFire, Weller Racing team up for RZR kit DragonFire and Weller Racing have partnered for a new RZR performance package. Marcus and Mouse Pratt (Jack's Excavating/ITP) won the 2015 Heartland Challenge UTV 1000 Pro title using ITP TerraCross tires on their Can-Am Maverick. -90% -70% -50% -30% -10% 10% 30% 50% 70% 90% 110% $4,000-5,000 $5,000-6,000 $6,000-9,000 $9,000-12000 $12,000-15,000 $15,000-18,000 $18,000-21,000 $21,000-24,000 Overall Market GROWTH RATE $12,000 - $15,000 $15,000 - $18,000 $9,000 - $12,000 $18,000 - $21,000 $6,000 - $9,000 $21,000 - $24,000 $5,000 - $6,000 $4,000 - $5,000 OVERALL MARKET NATIONAL TEXAS DALLAS DEALER $4,000- $5,000 -53% -72% -72% 63% $5,000- $6,000 5% -20% 20% 35% $6,000- $9,000 5% -4% 11% 44% $9,000- $12,000 -13% -21% -14% -21% $12,000- $15,000 7% 10% 16% 34% $15,000- $18,000 19% 1% 18% 11% $18,000- $21,000 -42% -10% 2% 7% $21,000- $24,000 72% 76% 100% 100% OVERALL MARKET 8% -1% 9% 17% Source: Statistical Surveys Inc. UTV RETAIL PRICE POINTS; JAN.-SEPT. 2015 COMPARED TO JAN.-SEPT. 2014