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Powersports Industry Offers Retailers And Restylers Increased Profit Potential

Spring is a seasonal gold mine across many aftermarket segments and an ideal opportunity for retailers and restylers to take advantage of increased foot traffic and cash in. There’s certainly no shortage of enthusiast activities to fuel a consumer spending spree.

 

For example:

  • Off-road racing fans are savoring the intensity of a short-course dirt track and tinkering with their own 4x4 parts in the garage
  • The Jeep® community is hitting the trails top-down style, hoping to get stuck and put that premium winch to good use
  • Open-road adventure seekers have their campers in tow, excited to explore the great outdoors
  • Gear heads are making final modifications to get their whips road ready for the summer season

 

But the powersports market, comprised of ATVs, side-by-sides (SxS), motorcycles, powerboats, personal watercraft (PWC), and snowmobiles, has a diehard group of recreational enthusiasts that often is overlooked as a prime target and means for diversification within the aftermarket. It’s a stable industry with healthy margins and a loyal customer base — and retailers and restylers should be tapping into this pool of increased profit potential.

“(Powersports units) need to be towed, hauled or trailered, and you need a truck in order to do that, so there’s strong customer crossover between truck-accessory shops and the powersports market. Keystone offers products for both,” said Tom Gross, a powersports industry veteran of nearly 30 years and owner of Uni Filter, a manufacturer of high-performance polyurethane foam air filters and a top brand choice among serious off-roaders.

Keystone Automotive Operations, the leading and largest wholesale distributor of automotive aftermarket parts in North America, teamed up with two of its valued partners in the powersports industry, Terracross and Uni Filter, to educate retailers and restylers about the current state of business, market trends, crossover and diversification opportunities, as well as profit potential.

Side-by-Sides Leading the Way

Glenice Wilder, VP of Powersports EFG Companies, said the first quarter of the 2016 fiscal year was off to a positive start, as unit sales, dealer profitability, and maintenance service repairs are all trending upwards. But SxS sales are the true story, taking the industry by storm and nearly cannibalizing a once-dominant ATV market. According to Motorcycle & Powersports News, UTV sales are estimated to be in the neighborhood of 400,000 units, which is significantly higher than its ATV counterpart.

“The UTV has become a popular choice among families, sportsmen and off-roaders alike,” said Joe Duncan, owner of Terracross and a 20-year veteran of the industry with extensive experience in the snowmobile and SxS market segments. “It’s an estimated two-billion dollar segment that is expected to nearly double over the next two years. Whereas ATVs are a highly individualized activity, an entire family can enjoy a UTV experience together during all 12 months of the year, and so we’ve seen a shift (in demand),” he said.

Market data suggests that powersports consumers have one of the largest discretionary budgets, spending thousands of dollars on the unit itself and then several thousand more in aftermarket upgrades — not unlike many truck or Jeep consumers who are eager to customize their rig at the point of purchase with LED lighting, side steps, recovery items or front-end protection. “And that discretionary budget doesn’t end there. It includes an increased rate of replacement parts and maintenance service repairs associated with powersports recreation,” explained Duncan.

Do you see dollar signs yet? According to Steve Nessl, Yamaha ATV/SxS group marketing manager, “The SxS market is evolving, and that’s a good thing for dealers and consumers who will have more selling and buying options.” The result: An opportunity for retailers and restylers to attract new customers, diversify their business and share in the powersports profits — from aftermarket upgrades and personal equipment to repair and maintenance products.

Know Thy Market

Duncan of Terracross offered shop owners some candid advice to consider while exploring diversification opportunities in the powersports industry. “Powersports is a specific niche, so you’ve got to know the players, be knowledgeable about the units and aftermarket products, and share a passionate appreciation for the lifestyle,” said Duncan. “First rule of thumb is to know thy market,” he added. “What kind of powersports are in demand within your immediate area? Is there a body of water, a motocross track or trails?

Next, you want to get yourself involved in the local sport — attend an event, sponsor an event, talk to consumers at the event. Pick their brains about what products they’d like to see offered in your shop. You have to know what’s sellable! This is a loyal group of enthusiasts, and if you support them, they’ll support you.” Uni Filter’s Gross also suggested a handful of core products that will always be in demand among powersports users, including maintenance items, such as tires, filters, spark plugs, chains and belts.

Tap Into Sales and Profit Potential

“On average, accessories spending is about $2,000 the minute (customers) buy the (UTV). They may spend $6,000-$7,000 in accessories over the lifetime of the unit. If it’s being used in the racing circuit, guys could be spending $50,000-$60,000 when all is said and done between the engine, tranny and differential work,” said Terracross’ Duncan. “Bottom line, there’s a lot of sales potential and strong margins on powersports products, which help offset some of the margin pressures on the aftermarket side of the business,” added Gross. “Guys are towing their toys, so it’s a natural add-on sale for truck-accessory shops.”

And it doesn’t stop there! Above and beyond accessorizing, ATVs and UTVs virtually assure consistent work for service repair shops. “The rise of SxS sales represents plenty of tire changes, service work, parts and accessories profitability for dealers to cash in on,” reported Motorcycle & Powersports News. This provides retailers and restylers an opportunity to showcase the significant range of skills its technicians have to service crossover consumers in both the aftermarket and powersports industries.

Partner with a Distributor

“We’re always looking to bring on more enthusiasts and expand our powersports network,” said Duncan. But the powersports industry has a strict distribution model, so diversification must be done appropriately. Duncan and Gross suggested that retailers and restylers identify a target segment, conduct preliminary market research to determine what lines and products will best suit the needs of local consumers, and lean on the expertise of key manufacturers within the powersports space to direct them to the right distribution partner. “Keystone is dedicated to expanding the reach of the powersports industry by getting our automotive aftermarket customer base excited about and involved in the market,” said Jason Shatrowskas, Keystone category manager. “We carry dozens of powersports lines, many of them very strong crossover brands that make it an easier transition into this space for our automotive aftermarket customers.”

Diversification doesn’t need to be drastic. It can be as simple as stocking popular maintenance parts or as complex as broad inventory and repair service. Either way, consider the impressive opportunity that awaits. Let Keystone be your go-to team, helping you explore a new market, expand your customer reach and increase your company’s profitability.

 

Recent Articles

Keystone Welcomes RideTech

EXETER, PA – Keystone Automotive Operations, Inc. welcomes RideTech, one of the world’s largest aftermarket suspension companies, to its performance category. RideTech, formerly known as Air Ride Technologies, was founded in 1996 when owner Bret Voelkel, now a member of the SEMA Hot Rod Industry Alliance (HRIA) Hall of Fame, developed an air ride suspension for a 1970 Ford Mustang project car.

RideTech has since evolved into an industry-leading company with a full line of products, from air suspension systems, coil overs, and shock absorbers to coil and leaf springs, control arms, sway bars, and much more. Serving a variety of applications from street to track, RideTech is committed to manufacturing high-quality parts that display cutting-edge performance, durability, and reliability. “We do the research and development, CAD drawings, prototyping, CNC machining, CNC tube bending, jig welding, shock assembly and dyno, air spring crimping and burst testing, and final assembly all within our facility in Jasper, IN,” says the company.

Dedication to in-house quality control has allowed RideTech to become a performance suspension specialist, with a virtually non-existent backorder rate and decidedly competitive warranty. The company stands behind all of its shock absorbers with a 1,000,001-mile warranty as proof that RideTech truly “goes the extra mile.” Furthermore, RideTech promises that any driver who expires their RideTech shock warranty, “will get a picture of themselves and their car in a full-page ad in Hot Rod Magazine.”

“Our business model has not been derived from any business seminar or book,” says the company. “It is simply our common-sense approach to give the customers what they want, when they want it. Since we are (a staff of) hot rodders, we feel we have a reasonably good idea what ‘it’ is.”

At the 2018 SEMA Show, RideTech introduced several new product launches, including a new line of sway bars that offer unparalleled dimensional accuracy and bar rate consistency. Featuring 100% in-house CNC-bent tubing, the new sway bar program also employs investment casting technology to redesign bar ends and end links for more durability and easier installation. RideTech also debuted an all-new billet modular spindle design for C5/C6 Chevrolet Corvettes (as seen on the company’s race-winning Track 1 C5 Corvette), and a new, larger rod end and weld-on bearing known as the R-Joint XL.

Looking forward, RideTech continues to invest in R&D and expand its engineering department resources, making its innovative suspension systems more durable and technologically capable. The company’s RidePRO-X Digital Air Suspension Leveling System made an encore appearance at SEMA 2018 to debut its innovative new smartphone app that provides greater custom calibration and increased accuracy. In addition, RideTech is active outside the automotive aftermarket, diversifying its portfolio with OEM, marine, and military applications.

With a dedicated team focused on product development and customer satisfaction, backed by a true passion for hot rodding, RideTech is working hard to secure another generation of exciting suspension systems. “RideTech is the leader when it comes to performance suspension system upgrades. The complete systems give our customers the ability to make one purchase for everything they need to fully upgrade a suspension system,” says Joe Rutledge, Director of Category Management for Performance at Keystone. “Our team is honored to be able to offer the RideTech product line to our customers.”

Keystone is the leading distributor and marketer of automotive aftermarket products and services, uniquely positioned to offer customers and suppliers substantial scale, the most comprehensive inventory selection in the industry, high levels of customer service, and innovative marketing support. Keystone is committed to expanding its offerings to meet the ever-growing needs of its customer base, providing them what they need, when they need it most.

NTP-STAG’s Pre-Cart Functionality Makes Preparing for EXPO Easier Than Ever

Exeter, PA – One of the most important things a dealer can do before they attend NTP-STAG’s EXPO, is prepare. “Over the past several years we have integrated technology solutions into our trade show to make it easier for our customers to maximize their time on the show floor with us and take advantage of all the special offers we provide,” states John Spaulding, Director of Events and Communications. “Early preparation and utilization of these new tools can really improve a customer’s experience at the show,” he adds.

The company found that dealers who reviewed their purchase histories, took stock of their inventory and forecasted their demand for certain products before the show typically had more time to visit with suppliers about new lines and learn about new products and services offered by NTP-STAG. “Our Pre-Cart option within VIA allows our customers to get a head-start on building their show orders. The functionality is available now, giving everyone attending EXPO plenty of time to develop a buying plan for when they are with us in Nashville January 22-23,” says Fred Petrivelli, VP Sales NTP-STAG.

NTP-STAG’s pre-cart works just like an e-commerce shopping cart. Customers can add items to the pre-cart by selecting the Add-to-Expo Cart button available on product list and product detail pages within VIA. Pre-cart contents can be modified at any time and show pricing will appear on those items at the opening of the show.

EXPO attendee can also use the Pre-Show Upload tool available in the EXPO site. The Upload tool uses a simple Excel file format that allows customers to build their show buy and upload directly into a pre-cart. This is extremely helpful for customers that use their point of sales software to output usage reports. The information those reports generate can now be easily translated into a shopping cart making it much faster to build an order.

To see a quick tutorial about Pre-Cart go to Expo Precart Tutorial to learn more.

Technology advancements have also influenced how orders are placed at the show. Electronic ordering was introduced at EXPO two years ago, and is fast becoming the most popular way to submit orders. “Dealers are realizing that the time savings, order accuracy and other benefits associated with the technology makes the order writing process easier, faster and more enjoyable,” says Spaulding. “We use a bring-your-own-devise-and-data approach to our web-based solution and found that it is easier for people to use equipment they are familiar with. If it can connect to the internet, it can be used to place orders at the show.”

NTP-STAG EXPO is the industry’s largest warehouse distributor sponsored event. It draws attendees from across North America and features educational programming, exhibits from over 200 suppliers, season-best buying opportunities and a variety of networking functions. The event is being held January 22-23 at the Gaylord Opryland Resort in Nashville, TN. To learn more about the event or pre-cart ordering, customer should contact their sales representative or visit expo.ntpstag.com.

NTP-STAG Expo 2019 Show App Available Now

Exeter, PA - NTP-STAG has announced the launch of the 2019 Expo Show App and its availability to download from the Apple Store and Google Play.

EXPO QR Code

The App is the Expo attendee’s gateway to real time information about the show.  Users will gain access to the show agenda, RV University schedule and PRO Seminar speakers and topics. Additionally, the App provides an interactive floor plan to make finding suppliers easier and live updates for notifications on prize drawing winners, Power Hours and much more. It’s simple to use and a very handy tool to get the most out of the Expo experience.

Getting the App is easy.  Go to https://guidebook.com/g/ntpstagexpo19

1. Tap the "Download" button to download the free Guidebook app
2. Open Guidebook and you can find our "NTP-STAG Expo 2019" guide
3. Tap "Enter passphrase" and enter ntpstagexpo19 to download our guide

Whether EXPO is the largest RV distributor sponsored event in North America. RV Dealers, Service Centers and Mobile Repair businesses are attracted to EXPO for the education and buying opportunities the event provides.  This year’s show will host 36 technical product and business development seminars at RV University. The exhibit hall will be home to nearly 200 suppliers showcasing new items, a model store and NTP-STAG exclusive marketing and merchandising offers. The season’s best deals await NTP-STAG’s customers at EXPO and the new Show App makes getting the most out of the event, easy.

NTP-STAG is the leading full service distributor and marketer of aftermarket RV products and services, uniquely positioned to offer customers and suppliers substantial scale, experienced associates, the most comprehensive inventory selection in the industry, high levels of customer service, and innovative marketing support. NTP-STAG is committed to expanding its offerings to meet the ever-growing needs of its customer base, providing them what they need, when they need it.

Keystone Automotive Launches New Mobile App

Exeter, PA Keystone Automotive Operations, has launched a new mobile app that puts the power of their industry best “eKeystone” business-to-business system into any device and makes it mobile! “Access to information when and where a person needs it was a fundamental consideration in the building of our app for mobile devices,” states Harneet Kaur, Director of Marketing at Keystone. “Fast, convenient and thoughtful access to data, tools and sales resources that make our customer’s lives better and more productive was the objective and the result we achieved,” she added.

Shop owners are often in front of the counter, out in the parking lot looking at a customer’s vehicle, making a dealer sales call, or in the shop working on a vehicle build. This app gives them the flexibility to access eKeystone tools anywhere they work.

“In addition to being able to access all the power and resources available on eKeystone, it goes even further. One of the new features is VIN Lookup which has been on our desired feature list for a long time” states Fred Petrivelli, Vice President of Sales at Keystone. The app harnesses mobile device technology including voice-to-text capability to allow users to search for products simply by saying a category or brand, and utilizes the camera to scan QR, UPC and vehicle VIN numbers and VIN barcodes. This scanning capability takes the mobile app from a retail sales driver to a store management tool for inventory control and other store functions like pricing, labels and ordering.

eKeystone App Barcode and VIN Scanner

The eKeystone app includes all the proprietary data in Keystone’s B2B system. Subscribers can access 800k+ cataloged SKUs, 400k images, 20k videos, 40k installation instructions, and more. “When you put a tool like this to work in a live business environment the possibilities for improving customer service and sales are endless,” explained Petrivelli.

Whether the app is used to scan a vehicle VIN to help identify accessories appropriate for that vehicle, place an order, track a shipment or upsell accessories in a car lot, car show or event, it will prove to be a powerful sales tool that can be taken anywhere.

The app is now available for download on the iTunes App Store and Google Play and immediately available to existing Premium eKeystone users. Once loaded onto a user’s device the app is activated using the customer’s eKeystone account login information.

For more information contact a Keystone Automotive Operations customer service associate at (800) 521-9999.

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