Off-Road Profitability: Selling the Right Vehicles Leads to High Margins

There are several factors to consider before adding an OEM to your dealership. Will the company have inventory, with a model mix that’s in demand? Are the vehicles competitively priced?

There are several factors to consider before adding an OEM to your dealership. Will the company have inventory, with a model mix that’s in demand? Are the vehicles competitively priced? Will the OEM offer support to my dealership to increase sales? At HISUN Motors, the company is ready to help dealers answer “yes” to all of those questions.

Leading the company into the forefront of the off-road segment with record setting gains year-over-year, HISUN was able to meet the increasing consumer demand in 2020 by adding new personnel, improving marketing strategies and creating new products.

“Our growth confirms the work we are putting in as a company to be the best we have ever been. Each aspect of our business has improved and continues to improve,” said Western Regional Sales Manager JJ Pecsok. “This includes all departments and the great team of people we have working together, who all play a vital role in elevating the service and products we provide to dealers. We appreciate our dealers and strive to continue elevating who we are to help them achieve their business goals and needs.”

HISUN’s tremendous growth in the 2020-2021 season is just the beginning for the company.

“Our 7.1M sq.-ft. manufacturing facility has been working tirelessly to keep up with the demand. We just haven’t hit our ceiling yet,” explained National Sales Manager Jason Walling.

Though several OEMs are facing inventory shortages due to manufacturing shutdowns, HISUN was able to act quickly and move ahead when other companies sat idle.

“There have been some challenges to keep up with the inventory demands due to supply chain, ocean freight and other hurdles,” Pecsok said. “Luckily, we have the ability to quickly increase our orders directly from our factory and revise as needed. We are constantly increasing our forecasts as sales continue to skyrocket. We have units going out just as fast as they arrive from the factory.”

Over the past year, HISUN has never had to tell dealers that inventory is “out of stock.”

“We have been very fortunate at HISUN and we have never been completely out of stock,” said Eastern Regional Sales Manager Stuart Maxcy. “When COVID started to really impact the U.S., our executive team made the decision to stay open, keep everyone working, and did everything they could do keep product coming it. I’m sure it was a tough decision to make, but it has really paid off.”

Now, inventory is picking back up to pre-pandemic levels, but consumer demand is still at an all-time high. When customers are behind the wheel, HISUN vehicles sell themselves, with features that are in-demand and highly sought.

“Some of our major selling points are that our units come equipped with some accessories that other major OEM brands do not offer as a standard option. For example, our Sector and Strike UTVs come equipped with a roof, windshield and winch, along with turn signals, brake lights and mirrors,” Pecsok said. “Our Tactic ATVs also come equipped with additional accessories like a winch. Much of the time, these accessories are an additional cost to the consumer. When making a large purchase like this, consumers are not always able to get all the additional accessories they would like. So, it’s nice to know we are able to help consumers get everything they want during their first visit, with one purchase.”

Narrowing down what vehicles to sell is not a task dealers are obligated to do singlehandedly. The HISUN sales team works closely with each dealer to make sure the inventory they stock is inventory that will sell in their region.

“In the past 12 months, we’ve added some very qualified members to our sales team. These are industry veterans who are subject matter experts and know exactly how to guide our dealers in the right direction with our products,” Walling said. “Having feet on the ground and in the field has helped us bridge that gap with our dealers.”

When choosing inventory, Pecsok noted that communication is key, “We encourage our dealers to stay on top of managing their inventory to the best of their ability, but with our help. Being part of the powersports industry, there have been times where we all lost sales by not having inventory, or by not having the correct inventory. It’s important for us to ensure our dealers have the right product mix for their store and their customer base. Each dealer is different, and we understand that. Working closely with them to help us understand what they have the most success with, is important for us to forecast and plan with them as a partner. With that, we can also share successes we see in other areas of their market, and across the country.”

Maxcy added, “We have a great sales team that is very in tune with what is going on in their territory. We aren’t ‘order takers’ here at HISUN. We like the dealer to be confident in the type of machines they bring into the dealership.”

For HISUN dealers, being competitively priced helps lead customers into a HISUN purchase.

“Everyone has an idea of what’s important to them,” Walling explained. “Whether it’s performance, longevity, ease of use, etc. I believe we provide a reliable, well-equipped product, with a great warranty, all at a sensible price. Many comparable products are less equipped, with shorter term warranties, often for more money.”

It is no secret that powersports is an expensive hobby but offering attainable pricing for all consumers is something that HISUN stands behind.

“Not everyone can afford the biggest machine on the market,” Pecsok said. “One of our goals is to continue to offer machines that keep our pricing at a point where we are able to help customers bring one home. This may be a new customer to the industry. It may also be a long-time customer who feels a little more at ease saving thousands of dollars on their purchase. We have quality machines at a great price point. It’s a rewarding feeling knowing we help customers get onto an ATV or UTV, for whatever they may be using it for. Be that work or play.”

One of the biggest reasons HISUN is able to keep costs affordable is their location.

“Almost every piece on a HISUN ATV or UTV is made by HISUN. This allows us to keep our cost low and margins high,” Maxcy said.

For dealers, meeting annual sales goals are a priority. So, what’s HISUN secret to success? Can HISUN’s competitively priced vehicles really lead to great margins?

With a laugh, Pecsok explained, “Well, we can’t share all of our secrets! But we work hard to make sure our dealers maintain a nice profit selling our units with features that do not come standard with many other OEM brands.”

Walling added, “We have a diversified model mix and all of the necessary incentives for dealers to be successful. Things like extended flooring terms through Northpoint Commercial Finance, co-op dollar and retail financing incentives, just to name a few.”

HISUN is motivated to work every day to support their dealer partners, leading them to run successful businesses across the country.

“We are here to serve our dealers as a business partner. This goes much farther than just selling units,” Pecsok said. “We are here to help them through the entire process. We have departments throughout our company who service our dealers on all levels. This includes marketing, customer service, technical support, parts, shipping, finance, the HISUN Dealer Portal and HISUN University, production, quality control and more! Whatever the dealer may need, we have the people here to take care of them.”

Covering everything dealers might need for success, HISUN is continuously creating new products to help dealers amplify sales. Walling mentioned that this includes “stepping up parts and accessories offerings and extended warranties to add additional revenue streams for dealers.”

Wondering what to do next? Take the first step and visit HISUN’s website and click “Become a Dealer” to learn more.

“This section provides a short inquiry form for the dealer to fill out that is automatically submitted to our sales team,” Pecsok said. “From there, a member of our team will review the inquiry and will contact the dealer to learn more about their dealership, their business goals and plans and how we can help each other achieve these.”

Maxcy encourages all interested dealers to get in touch with HISUN’s sales department to start the conversation with a representative in their territory, by calling 972-446-0760 on Monday – Friday, from 8:30 a.m. to 5:30 p.m. CST.

“We are building something big here at HISUN,” Maxcy added. “Dealers that come on board now will not only profit financially from the growth, but also play a role in building the future.”

For more information about HISUN Motors, visit hisunmotors.com.

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