OCTOBER 27TH, 2009
PG&A inventory advice for every dealership to consider
If your PG&A inventory is collectively a little more aged than you would prefer, than by all means focus on this piece of advice. It comes from Steve Sowden, the general manager of fixed operations for the California Motorsports Group, which owns five stores in California. By the way, this piece of advice is just one of a number of specific pointers to reduce aged inventory that can be found in the coming edition of Powersports Business. Read more >>
In October 2008, only 19 percent of consumers said they were confident/very confident in the U.S. economy, according to a national survey from BIGresearch. While that number is dire, it is improving. This October about 30 percent of respondents said they were confident in the economy, which is up less than a percent from Sept. 2009, but still up nonetheless. 
A very important V-twin industry topic was raised late last week but really never saw the light of day due to the somber news about Buell. That tremendously important topic: The health of the Harley-Davidson dealer network. Harley-Davidson disclosed publicly for the first time what dealer closures they have had recently and what they expect to see in the next six months. 
“It” isn’t just another computer term coined by Gen Y. And by the accounts of a recent retail sales survey, “it” is known by more than three-fourths of online shoppers as an unofficial holiday. 
Most dealership owners have figured out they need to sell their dealership to customers and not just sell the products carried by their dealership. On the other hand, the facts say that most salespeople are focused solely on selling a product and not the dealership. In fact, when we recently measured nationwide how often a motorcycle salesperson gave compelling reasons to buy from their dealership, we found that it happened only 34 percent of the time. Two times out of three there was no mention of why buying from this dealership was a better idea than buying somewhere else. The focus was solely on product. 
For dealers with abnormally high scooter inventories, I would love to tell you that a recent conversation I had with a national economist about future oil prices will brighten your day. 
Powersports dealers should understand the importance of separating dealership assets (inventory, accounts receivable, shop equipment, etc.) from real estate (the dealership building and surrounding land, including parking areas). Of course, many dealers own only the operating assets and lease the real estate from someone else. However, if you already own some of the real estate you use for your business, or if you are thinking about buying real estate, remember to keep the two assets separate. 
For those of you who were unable to join us earlier this month at Indianapolis for the first-ever Powersports Business Conference and Expo, you missed a terrific moment in the “State of the Industry” panel that isn’t mentioned in our front-page report in the coming edition. 