fbpx

Business-Focused Peer Groups Growing Amid Sluggish Industry Unit Sales

The percentage of powersports and motorcycle dealerships involved in peer review business groups known as 20 clubs is expected to reach a new high this fall. The increase in participation is industry-wide, with more OEMs and dealerships scrutinizing their retail practices as the industry’s new unit sales have remained largely stagnant.

The percentage of powersports and motorcycle dealerships involved in peer review business groups known as 20 clubs is expected to reach a new high this fall. The increase in participation is industry-wide, with more OEMs and dealerships scrutinizing their retail practices as the industry’s new unit sales have remained largely stagnant over the past few years and even dropped slightly in the first half of 2016.

“OEMs have realized they need to pay as much attention to the retail side of the industry as the wholesale side,” said Sam Dantzler, president of Garage Composites, the industry’s leading dealership training and 20 club provider. “Equally important is the desire by dealerships to take better advantage of the store traffic they’re receiving, and capitalize more on each and every unit sale.”

Andy Kent, operator of Beach Blvd. Motorsports in Jacksonville, Fla., has certainly done the latter. Since joining a Garage Composites’ 20 club earlier this year, Kent’s profit per unit has increased nearly 67 percent. Kent’s 20 club includes more than a dozen non-competing dealers from throughout the nation.

“Garage Composites and my group members have pointed out holes in my dealership, where we were overspending or wasting money,” Kent said. “They have added to our bottom line in ways I never thought possible.”

The growth in the percentage of dealers using 20 groups has been industry-wide, with OEM participation aiding the growth in both the United States and Canada. Dantzler, who has been involved in 20 clubs for three decades, says the percentage of dealers involved in 20 clubs or joining such groups this fall will eclipse what was seen before the recession hit the industry in 2008-’09.

To meet the demand for more 20 clubs, Tony Gonzalez, CEO of Garage Composites, said the company is expanding its 20 clubs this fall in the metric, European and V-twin spaces. Plus, he said Garage Composites will be announcing a number of new OEM relationships in coming weeks.

“Even with the decrease in the industry’s overall new unit sales this year,” Gonzalez said, “we are seeing year-over-year revenue growth happening for dealers who are aggressively implementing and tracking the retail strategies we’re discussing in the 20 clubs.”

For more information: www.garagecomposites.com.

You May Also Like

Indian Motorcycle Announces Sponsorship of Handbuilt Motorcycle Show

Indian’s sponsorship includes the season’s first Owners Ride, Custom Bike Display and demo rides of the all-new Scout lineup.

Handbuilt Motorcycle Show 2024

Indian Motorcycle announced sponsorship of the renowned Handbuilt Motorcycle Show in Austin, Texas, taking place April 12-14. In conjunction with the show, and in celebration of riding season, Indian Motorcycle will kick off its 2025 Indian Scout demo tour, host its first 2024 Rider Series owners ride and showcase a lineup of artfully designed custom motorcycles. 

Iron Pony Motorsports Acquires Honda/Suzuki/Can-Am of Jackson

The company expands its footprint in Ohio.

Iron Pony Motorsports
MAP Services Corp. Adds 13 New Brands to Portfolio of Clients

MAP Services leverages AI to enforce MAP policy and monitor compliance.

MAP Services
Turn 14 Powersports Names Matthew Sturdevant as Director of Brand Management

Sturdevant will oversee the company’s 12 brands.

Matt Sturdevant
Synchrony Partners With BRP to Provide Retail Financing Options in the U.S.

Synchrony to offer consumers flexible financing on powersports products.

Other Posts

Indian Motorcycle Dealers Ranked Highest in 2024 Pied Piper Internet Lead Effectiveness Study

The industry’s average performance declined; increased use of texting was offset by lower speed and quality of email and phone responses.

Accepting the trophy from Pied Piper CEO Fran O’Hagan (center) were Joel Harmon, Polaris vice president, on-road sales and market development (left) and Aaron Jax, vice president, Indian Motorcycle (right).
FIN Provides Realtime Tracking to Police, Recovers 2023 Kawasaki Motorcycle

After sitting for several hours in what appeared to the be the interior of a residential property, the motorcycle started moving.

Kawasaki KLX 250R
Turn 14 Distribution Adds Giant Loop to the Line Card

Giant Loop’s product line includes a vast range of adventure motorcycle luggage solutions.

Giant Loop
Kawasaki Motors Corp. U.S.A Appoints New President

Naoki Kawaguchi most recently served as the executive vice president, four-wheel business.

Naoki Kawaguchi