Issue link: https://read.dmtmag.com/i/730410
Northwest Territories lead Canada Montana leads the U.S. in the percent of UTVs sold with accessories, as well as in accessory sales as a percentage of the total new unit deal. More than three-quarters of all UTVs sold in Montana are sold with accessories during the new unit sale. And accessories account for 14.3 percent of the total new unit deal, accord- ing to data provided exclusively to Powersports Business from CDK Global Recreation. CDK studied 142,057 new unit sales ($2 billion in sales) and $117 million in accessory sales in the U.S. from September 2015 through August 2016. For Canada, the study focused on nearly 4,000 unit sales ($66.5 million) and $4.7 mil- lion in accessory sales. Looking more closely at how many units are sold with accessories upon initial sale, Wyoming is next, with 73 percent of units sold with accessories. On average, dealers in 26 states sell accessories with 50 percent or more of their UTVs. The Midwest and South each have eight states with 50 percent or more UTV accessory penetration, while the West has five states in the same category. Midwest states run from 40 to 60 percent of units sold with accessories. In the Northwest, Oregon rolls 77 percent of all UTV sales without accessories. Wash- ington State sends half out the door without add-ons, but Alaska adds accessories to two out of three units. Two out of three units roll out the door in Florida without add-ons. The reverse is true in Louisiana, where two out of three units deliv- ered have accessories. Almost all UTVs sold in Hawaii are sold without accessories (97 percent). In California, nearly three-quarters of all units do not have accessories. PERCENTAGE OF ACCESSORIES SOLD Montana is again at the top of UTV accessory sales as a percentage of the total deal. Just like in the other category, Wyoming follows at 10.0 percent. Rounding out the top five are Alaska (9.9 percent), Connecticut (9.1 percent) and Loui- siana (8.5 percent). Minnesota, Iowa and North Dakota all top 8 percent. The upper Midwest is the most uniformly successful region in UTV accessory sales. The cold weather, agricultural needs, rec- reation potential and generally good economic conditions all combine to create a conducive environment for add-on sales, CDK Global Recreation reported. Hawaii is the state with the lowest amount of UTV accessories sold with a new unit deal at 0.7 percent. The rest of the bot- tom five are Arizona (2.4 percent), Oregon (2.5 percent), California (2.5 percent) and Florida (2.6 percent). Nevada, at 2.9 percent is sixth from the bottom. Some explanation for the differences between states in accessory sales is found in the six bottom-ranked states. Each of them is a sun belt state, where cold weather equipment would not likely be needed. Neither do they have swamp conditions that might require special outfitting. Oregon is an unexplained anomaly among these low-end states, reported CDK Global Recreation. In Canada, the Northwest Territories and Manitoba show the highest percentage of sales derived from accessories on UTV deals. These percentages, 20 percent and 19 per- cent respectfully, are significantly higher than any found in the rest of Canada or in the U.S. (Information from Québec was not available for this study.) SALES TRENDS Though the average accessory sales per new UTV sold is still nearly $1,100, it has dropped almost consistently since topping out at FOCUS PSB UTV Accessories 34 • October 3, 2016 • Powersports Business www.PowersportsBusiness.com 0.7% 2.4% 2.5% 2.5% 2.6% 2.9% 3.7% 3.8% 4.1% 4.1% 4.2% 4.2% 4.3% 4.7% 5.2% 5.2% 5.2% 5.3% 5.4% 5.7% 5.7% 5.7% 5.9% 5.9% 6.0% 6.0% 6.1% 6.4% 6.4% 6.4% 6.5% 6.6% 7.0% 7.1% 7.5% 7.5% 7.5% 7.7% 7.8% 7.9% 7.9% 8.0% 8.3% 8.4% 8.5% 9.1% 9.9% 10.0% 14.3% 0% 2% 4% 6% 8% 10% 12% 14% 16% HI AZ OR CA FL NV VT SC MO NM NC NH NJ OH WA PA VA DE IL OK NY NE KY WV GA MA ME WI KS IN MD TX MI MS CO ID AL AR UT SD TN ND IA MN LA CT AK WY MT AVERAGE ACCESSORY SALES PER NEW UTV UNIT U.S. and Canada, 24 months ended August 31, 2016 $1,468 $1,677 $1,512 $1,350 $1,502 $1,667 $1,330 $1,270 $1,098 $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 U.S. NEW UTV ACCESSORY SALES As Percent of $ Unit Sales, by State, $ Accy Sales/$ Unit Sales, September 2015-August 2016 PERCENT OF NEW UTV SALES WITH NO ACCESSORIES ON THE DEAL By State and Region, Count of UTV Units Sold Without Accessories/Count of Total UTV Units Sold, 142,057 New Units, $117 million dollars in Accy Sales, $2 billion in Unit Sales 73% 97% 39% 41% 42% 43% 43% 45% 48% 50% 54% 55% 57% 58% 59% 47% 47% 47% 49% 53% 55% 55% 57% 65% 66% 67% 30% 49% 77% 31% 32% 32% 33% 41% 42% 44% 49% 53% 53% 56% 65% 24% 27% 33% 34% 43% 57% 70% 71% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% CA HI SD IA KS IN MN MI OK WI ND NE IL OH MO ME WV DE NY PA MD CT MA NJ NH VT AK WA OR LA AR TN AL MS KY GA VA SC NC TX FL MT WY UT ID CO NM AZ NV West South Northwest Midwest California Montana a leader in UTV accessory sales See CDK, Page 39 Source: CDK Global Recreation