Issue link: https://read.dmtmag.com/i/752766
forward to growth in Q4. Bell said although Q3 found his dealership below its performance plan, that isn't out of the usual for this time of year. "It's our slower quarter because our sales are slower around Christmas time," he said. "The main thing is we'll start getting some new product, something new and exciting for cus- tomers to look at." Emily Franklin, a manager at Ken's Cycle Center in Highland Springs, Virginia, agreed that both politics and weather had an effect on overall performance. But Franklin remained hopeful that after the election, customers will return to normal spending. The dealership, while keeping an eye on its budget, plans to focus on advertising and incentives to carry over into Q4. "Hopefully we'll get some creative advertising, aggressive sales and rebates going. We're just trying to change things up and not do the same thing," Franklin added. Arlington Motorsports has also made a com- mitment to upping its advertising, favoring social media and in-house events over more costly alternatives. "We're doing a lot more social media," said Niles. "We have to be careful with what we're spending because our budget is very tight. We're not selling as many, so we're not getting as much co-op, and the manfactur- ers on top of that have cut the co-op back." With new product arriving in Q4, more dealers are hopeful that will lead to increased sales and better performance. Current inven- tory levels were initially steep with some dealers, resulting in early incentives from man- ufactures to try and move product. Of those surveyed, 37 percent of dealers said inventory was overall too high, with 60 stating it was about right. Fifty-three percent of dealers found heavyweight motorcycle inventory too high, and 52 percent said the same about snow- mobile stock. Dealers who carry Polaris were asked if they believed the recent recalls from the OEM would have an adverse impact on the brand and future sales — 72 percent said yes, and 28 percent thought it would not have a negative effect. Niles added, "We need more aggressive sup- port from financing, especially from the manu- facturers. The manufacturers are pushing the dealers to take more product and if the manu- facturer really wants to sell more products, they need to get more into the game. "It's a declining business, so that just makes it a tougher game. About every quarter now we have to figure out where our customer is at, what has changed and what we need to do and focus on how we're going to attract them and keep them interested." PSB 4 • November 28, 2016 • Powersports Business NEWS www.PowersportsBusiness.com www.powersportsbusiness.com Editorial and Sales: 763.383.4400 Subscriber Service: 847.513.6025 EDITOR IN CHIEF: Dave McMahon 763/383-4411 (dmcmahon@powersportsbusiness.com) MANAGING EDITOR: Liz Keener 763/383-4413 (lkeener@powersportsbusiness.com) ASSISTANT EDITOR: Kate Swanson 763/383-4412 (kswanson@powersportsbusiness.com) DIGITAL MARKETING COORDINATOR: Shauna Spencer MANAGING ART DIRECTOR: Dodi Vessels ASSOCIATE ART DIRECTOR: Nicole Siewert PRODUCTION ARTIST: Kelsey Houle PRODUCTION MANAGER: Angela Schmieg PRODUCTION DIRECTOR: Cherri Perschmann NATIONAL SALES DIRECTOR Allison Gruhn 763/383-4467 (agruhn@powersportsbusiness.com) NATIONAL ACCOUNT MANAGER Mark Rosacker 763/383-4433 (mrosacker@powersportsbusiness.com) NATIONAL SALES REPRESENTATIVE Michael Kula 763/383-4440 (mkula@powersportsbusiness.com) CEO: Marion Minor SR. VICE PRESIDENT/FINANCE & OPERATIONS: Gerald Winkel SR. VICE PRESIDENT/MARKET DEVELOPMENT: Joanne Juda-Prainito GROUP PUBLISHER/MOTORCYCLE, POWERSPORTS: David J. Voll SALES OPERATIONS MANAGER: Bernadette Wohlman CONTRIBUTORS: COLUMNISTS: Tom Walworth, Scott Stropkai, Mark Mooney, Sam Dantzler, Glenice Wilder CONTRIBUTING WRITERS: John Prusak, Andy Swanson DEALER ADVISORY BOARD: Hooksett Kawasaki-Polaris, Jim Whalley; Hacker's Yamaha & Honda, Rick Hacker; Honda/Polaris of Lubbock, Morris Baker; All Action Water Sports, Ray Leps POWERSPORTS BUSINESS (ISSN #1522-7944) is published 15 times per year – monthly except twice in May and December, the Market Data Book in September – by EPG Media/Specialty Information Media, 10405 6th Avenue North, Suite 210 Minneapolis, MN 55441. Periodicals postage paid at St. Paul, MN and additional mailing offices. SUBSCRIPTION INFORMATION: Free to qualified members of the motorcycle, all-terrain vehicle, snowmobile and personal watercraft industries. Annual subscription rate is $56 per year for U.S residents, $76 for Canadian residents and $96 for residents in other countries. All paid subscriptions must be paid in advance and in U.S. funds only. POSTMASTER: Send address changes to Powersports Business, P.O. Box 2123, Skokie, IL 60076-7823. CUSTOMER SERVICE: Visit www.PowersportsBusiness.com, email customerservice@epgmediallc.com, call (847) 513-6025, fax (763) -383-4497 or write to Powersports Business, PO Box 2123, Skokie, IL 60076-7823. CANADIAN RETURN ADDRESS: EPG Media & Specialty Information, 4960-2 Walker Road, Windsor, Ontario N9A 6J3. Publication Sales Agreement #40012332. EDITORIAL: All manuscripts, materials, photographs and artwork submitted are at mailer's risk and must include self-addressed envelope with sufficient postage for return. Send editorial materials to EPG Media/Specialty Information Media, 10405 6th Avenue North, Suite 210 Minneapolis, MN 55441, 763/383-4400. No responsibility will be assumed for unsolicited materials. Powersports Business is a registered trademark of EPG Media & Specialty Information. Copyright 2016 by EPG Media & Specialty Information. All rights reserved. Reproduction in whole or part is prohibited unless expressly authorized by publisher. REPRINTS: For more information on e-prints or reprints from Powersports Business, contact Robin Cooper, 763/383-4400 ext. 4491. Printed in U.S.A. Q3 SURVEY CONTINUED FROM THE COVER PLEASE RATE THE FOLLOWING: WHICH OF THE FOLLOWING EXTERNAL RISK FACTORS ARE YOU MOST CONCERNED ABOUT? HOW WOULD YOU CHARACTERIZE YOUR Q3 YEAR-OVER-YEAR SALES PERFOMANCE (NEW PRODUCTS ONLY, MEASURED IN UNITS)? WHAT TYPE OF GROWTH ARE YOU EXPECTING BY LINE OF BUSINESS (NEW PRODUCTS ONLY, MEASURED IN UNITS) OVER THE NEXT 12 MONTHS? 2% 4% 6% 3% 12% 3% 28% 23% 26% 24% 46% 26% 42% 32% 46% 51% 36% 47% 24% 32% 18% 19% 6% 17% 4% 9% 4% 3% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Overall Business Conditions New Unit Sales Used Unit Sales P&A Sales Service Department F&I Very weak Poor Average Good Very strong 76% 5% 21% 8% 30% 44% 0% 10% 20% 30% 40% 50% 60% 70% 80% U.S. political environment High/rising gasoline prices Financing costs/ availability Housing market Economic and/or political issues outside of the U.S. Employment outlook 2% 9% 3% 1% 3% 2% 12% 14% 8% 18% 5% 4% 1% 9% 3% 21% 2% 14% 38% 28% 30% 18% 20% 32% 29% 43% 38% 37% 30% 23% 34% 21% 35% 36% 26% 18% 24% 7% 13% 13% 14% 32% 26% 11% 18% 6% 20% 14% 9% 9% 14% 24% 18% 9% 22% 16% 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Overall Side-by- Sides ATVs Heavyweight Motorcycles Sport bikes Off-road bikes Scooters PWC Snowmobiles Boats -20% or greater -10% to -19% Flat to -9% Flat to +9% +10% to +19% +20% or greater Source: Powersports Business/BMO Captial Markets Q3 2016 dealer survey 1% 3% 1% 1% 1% 3% 2% 7% 19% 24% 11% 6% 9% 18% 10% 18% 20% 20% 54% 43% 42% 39% 30% 39% 29% 64% 42% 53% 14% 18% 29% 32% 41% 30% 43% 12% 18% 20% 6% 5% 6% 11% 10% 6% 10% 9% 6% 7% 11% 11% 9% 7% 8% 3% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Overall Side-by- Sides ATVs Heavyweight Motorcycles Sport bikes Off-road bikes Scooters PWC Snowmobiles Boats -20% or greater -10% to -19% Flat to -9% Flat to +9% +10% to +19% +20% or greater WINNING DEALERS The following dealerships that completed the Q3 Powersports Business/BMO Capital Markets Dealer Survey each were selected at random to win a $100 Visa gift card. Schronce Powersports, Taylorsville, NC Gregoire Sport, Lourdes-de-Joliette, Quebec Englehart Motorsports, Madison, WI Texas Motor Sports, Killeen, TX Storm Lake Honda, Storm Lake, IA All dealers who complete the survey receive analy- sis of the survey results from BMO analyst Ger- rick Johnson. The Q3 survey analysis is 9 pages. All dealers who complete the survey are eligible to win one of the five $100 gift cards. Want to participate in the Q4 survey? Send an email to dmcmahon@powersportsbusiness.com