Keystone News

Power-Up Sales

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

Tim Montana Live in Concert at the Glass Cactus

Gaylord Texan and Convention Center, Grapevine, TX

Join us and WEATHER GUARD to welcome Tim Montana for a LIVE concert before the BIG Show in Dallas, Texas on February 23rd at 8:00 p.m.. Protected by WEATHER GUARD.

* You must show your convention badge for entry.
* Must be 21 to attend.

 

ABOUT TIM MONTANA

It’s easy to see why Montana’s music connects with so many people far and wide. Dubbed as one of Rolling Stone’s “Artists You Need to Know,” his musical influencers range from Merle Haggard to Guns N’ Roses. Montana’s passion for music has not gone unnoticed by his fellow musicians. “Tim is the real deal. He’s a little bit country with lots of hard rocks — or maybe he’s a rocker in touch with some serious country roots,” says ZZ Top’s Billy Gibbons. 

Tim grew up in Butte, MT in a household that did not support his musical career. He quickly learned if he wanted to make a reality of out his passion to sing and play guitar, he had to escape Big Sky Country. He packed his bags and made his way to the heart of country music, Nashville, TN. 

Soon after living in Nashville, a rodeo performance caught the attention of David Letterman. David was so impressed by Tim’s music, he personally invited Tim to perform on The Late Show with David Letterman. 

Montana continued to write and record which earned him a worldwide publishing deal with the Spirit Music Group. This led to an introduction with ZZ Top’s Billy Gibbons. The two of them collaborated on multiple different tracks including, “This Beard Came Here to Party” which was the anthem for the Nashville Predator’s 2017 Stanley Cup Playoffs. Tim followed up with writing on Kid Rock’s current single, “Tennessee Mountain Top” and “Greatest Show On Earth” as well as Mac McAnally’s current hit, “Amarula Sun.” 

In September 2017, Tim released his single, “Hillbilly Rich.” Rolling Stone called the song an, “an ode to fantasies about telling off your boss, making it rain, and having everything all at once.” Shortly after the song was released, Tim performed the single live on Fox & Friends.

To learn more about Tim Montana you can click here to visit his website.

The BIG Show to Feature Erik Qualman as Keynote Speaker

Gaylord Texan and Convention Center, Grapevine, TX

KEYSTONE AUTOMOTIVE OPERATIONS, Exeter, PA.  -  Keystone Automotive Operations is pleased to announce the addition of Erik Qualman as keynote speaker to the 2018 BIG Show lineup, Friday, February 23rd at 4:30 PM – 5:30 PM prior to show opening at 6:00 PM. “Our BIG show is bigger than ever this year and we wanted to add a Keynote Address as a new component to our program,” commented Fred Petrivelli, VP Sales for Keystone Automotive Operation. “We are always looking for ways to help our customers and believe that delivering thought provoking content and solutions that can expand the way they think about their business is important.”   He adds, “We are very grateful of Warn’s sponsorship of Erik Qualman and helping us provide an educational and entertaining jumpstart to our event,”

 

#1 Best Selling Author and Motivational Speaker Erik Qualman has performed in 49 countries and reached 25 million people this decade. His Socialnomics work has been on 60 Minutes to the Wall Street Journal and used by the National Guard to NASA. His book Digital Leader propelled him to be voted the 2nd Most Likeable Author in the World behind Harry Potter's J.K. Rowling.

What Happens in Vegas Stays on YouTube helped Qualman be listed by Forbes and Fortune as a Top 100 Digital Influencer. His business books are used in over 200 universities and he has received an honorary doctorate for his groundbreaking work.

His book How to Sell on LinkedIn is becoming mandatory reading for sales teams. Qualman was formerly a sitting professor at Harvard & MIT’s edX labs. “The digital age has brought an unprecedented focus on branding, especially social reputation. We feel Erik’s remarks will strike a chord with our customers as they look for new ways to connect with their consumers,” says Petrivelli.

For more information, attendees and suppliers should visit www.keystonebigshow.com or contact their Keystone representative.





Keystone is the leading distributor and marketer of aftermarket automotive 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 offering to meet the ever-growing needs of its customer base, providing them what they need, when they need it most.

Holley and Keystone Automotive Operations team up to bring Bullitt Mustang to the BIG Show

Exeter, PA (February 2, 2018) The iconic 1968 Mustang fastback driven by Steve McQueen in the movie Bullitt (1968) will be on display during the Keystone BIG Show February 23-24, 2018 at the Gaylord Texan in Grapevine, TX. The Bullitt Mustang came out of hiding after 40 years of being one of the best kept secrets in automotive folklore.  It’s unveiling occurred at the North American International Auto Show this January in the Ford booth during the company’s announcement of a special edition 2019 Bullitt Mustang celebrating the 50th anniversary of the movie.

Sean Kiernan, the car’s owner, had this to say, “I’m really looking forward to showing Bullitt at the BIG Show. Being a Keystone cousin – I’m an LKQ employee – it’s fantastic that the timing of the event and the attention the car is getting are so well aligned. I think it will be awesome for our customers while creating a real buzz in Holley’s booth.”

Sean has said that his family kept the car a secret over the years with plans to eventually restore it as a father-son project. It was used as a daily driver after the Bob Kiernan (Sean’s father) purchased it in 1974 from an ad that ran in Road & Track Magazine. Auction estimates place the value of the vehicle between $4-5 million – comparable to other iconic cars like the Batmobile and James Bond’s original Aston Martin.

Two 1968 Mustang GT fastbacks were used in the award-winning film. One was sold to a private buyer and the other one, due to its condition after being thrashed around the streets of San Francisco, was destined for the salvage yard. “This original Bullitt Mustang is one of the most iconic vehicles of all time,” said Mark Gessler, president of the Historic Vehicle Association. “It’s one of the most important artifacts of the 21st century in terms of automotive history. It is a national cultural treasure.” (as quoted in USA Today).Bullitt Mustang

 “We are really excited to be bringing Bullitt to the BIG Show and it wouldn’t have been possible without the generous support of Holley. To give our customers the chance to see this very rare piece of American automobile heritage in person is thrilling,” said Bill Rogers, VP and General Manager for Keystone. “For most of our guests this will be a once in a lifetime opportunity and definitely worth the trip to Texas to see.”

The work of the Historic Vehicle Association with support from partners such as Ford Motor Company, Hagerty, Shell, Pennzoil, LKQ Corporation, American Fuel and Petrochemical manufacturers, and The NB Center for American Automotive Heritage have resulted in Bullitt being the 21st vehicle listed on the National Historic Vehicle Register.

To learn more about the Mustang Bullitt visit www.historicvehicle.org. Details about the BIG Show can be found at www.keystonebigshow.com.

 For additional information and videos click here: https://www.historicvehicle.org/documentary-films/

BIG Show Sponsored by WEATHER GUARD®

February 24, 2018 Gaylord Texan and Convention Center, Grapevine, TX

KEYSTONE AUTOMOTIVE OPERATIONS, Exeter, PA.

Keystone Automotive Operations is excited to announce the return of BIG Show sponsor, WEATHER GUARD® for the eighth consecutive year. “We’re ecstatic to return as the 2018 BIG Show title sponsor. It’s one of the most effective ways we have found to connect one-on-one with our customers” says Lenny Colasuonno, Senior Vice President of Sales. “We utilize the time at BIG Show to showcase new products, hear what is working, and learn how we can improve the products and services we provide to help our customers be even more successful selling WEATHER GUARD® products. The fact we get to do it while having a little fun is a bonus” he adds.

A highlight of the WEATHER GUARD® sponsorship will be a concert following the show opening on Friday February 23rd.  BIG Show guests are invited to kick up their heels with Tim Montana from 8:30 pm – 10 pm at the Glass Cactus. This up and coming band has been dubbed as one of Rolling Stone’s “Artists You Need to Know.”

The BIG show opens Friday, February 23, 2018 from 6 to 8 pm with a reception on the show floor followed by the WEATHER GUARD® concert. On Saturday, February 24 the exhibit hall will be open from 9 am to 6 pm and will feature more than 200 exhibitors with new products on display and the best deals of the year. The show concludes with a closing reception from 6 to 8 pm on Saturday at the Gaylord Texan Resort Hotel & Convention Center on in Grapevine, Texas.

Previously, Keystone held two (2) events annually, BIG Show East and BIG Show West. “This year, we’re combining our two events to create a BIGger, Better experience all under one roof. Our new one-show format will draw on the best elements of each event and be a destination for customers from all over the US and Canada to learn about new products while having the chance to capitalize on some of the best buying opportunities they will find anywhere,” remarked Fred Petrivelli, Keystone VP of Sales.  

For more information, attendees and suppliers should visit www.keystonebigshow.com or contact their Keystone representative.

Keystone is the leading distributor and marketer of aftermarket automotive 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 offering to meet the ever-growing needs of its customer base, providing them what they need, when they need it most.

WEATHER GUARD® is an industry leader in truck and van equipment, including truck boxes, drawer units, shelving, cabinets, and racks for trucks, vans and utility vehicles. WEATHER GUARD® organizes trucks and vans for greater productivity and provides tools and valuables superior protection against break-ins and weather.

scroll up