Protect cash, pick your moment, and proactively plan ahead
By Paulina Matel & Brad Stanek
Contributors
As we move into 2026, the economic landscape is sending a clear message to powersports dealers: be tactical, not reactive. Growth is slowing; rates are poised to decline, and the forces that drove record dealership valuations in recent years are shifting. For dealer principals, this next phase isn’t just about surviving the cycle — it’s about using it to clarify your growth, succession, exit, or reinvestment strategy.
Our team, the Stanek-Haack Group at Morgan Stanley, spends every day helping dealers bridge those two worlds: business and personal. The question we’re all asking is simple: What does 2026 mean for your dealership’s value and your family’s financial future?
Morgan Stanley’s research projects a deceleration in global and U.S. growth into 2026 compared with the post-pandemic rebound years. Inflation pressures have eased, and the Federal Reserve is expected to shift gradually toward rate cuts as the economy cools.
For dealers, this combination of slower consumer demand, but improving financing conditions creates a mixed environment. Lower rates help with affordability and floorplan costs, but muted growth and regional variability may pressure unit sales and margins.
Why It Matters: Lower interest rates can increase buyer activity and make dealers easier to finance — both for consumers and for buyers looking to acquire dealerships. For owners considering a sale or succession, this can improve valuation multiples.
After years of record highs, the powersports market is settling into a more normalized rhythm. Dealers have seen softening new-unit sales and lingering import delays, while used inventory remains strong. At the same time, analysts forecast steady long-term expansion in the powersports sectors.
Why It Matters: These types of markets reward disciplined operators, who continue to remain profitable. Dealerships with predictable earnings, stable inventory, and consistent revenue growth are better positioned to exit or succeed in the near future, even as growth slows.
As we enter 2026, the broader economic backdrop carries very real implications for powersports dealerships — not just on the revenue side, but also in how principals plan their personal wealth, business ownership transition, and capital structure. According to Morgan Stanley, U.S. real GDP growth is expected to slow down (with estimates around 1% for 2025-2026), due to the drag of tariffs, labor force constraints, and diminished fiscal stimulus. At the same time, the Fed is likely to hold rates higher for longer — the easing cycle is expected into 2026 rather than immediately — which means borrowing costs remain elevated in the near term. For a dealership principal, this has an array of consequences:
Consumer affordability: Slower growth and elevated rates mean consumers may be more selective about big discretionary purchases.
Financing and capital flexibility: With current rates high but expected to moderate later, dealers may benefit from multiple bank relationships as they negotiate and review financing terms.
Wealth planning urgency: Given the slower economic outlook, any near-term dip in earning will impact valuations and personal liquidity. Dealers should model their personal cash flow and investment portfolios as if business earnings remain moderate. Consider stress-testing your portfolio to understand various implications, such as your retirement funding, transitioning the business, or reinvesting some of your profit.
Diversification and asset protection strategies: With the economy showing signs of plateauing, it’s more critical than ever to diversify out of the dealership risk into broader investment portfolio — thinking about the wealth you will carry forward beyond the business. That means considering real estate, investable assets, cash structuring, and generation of other income streams.
In short, the current market environment magnifies the importance of proactively aligning dealership strategy and personal financial planning. Dealers who treat their dealership and their wealth as intertwined — not siloed — are better positioned to convert a successful operating year into a lifelong financial freedom.
Brad Stanek, CFP, executive director with The Stanek-Haack Group at Morgan Stanley in Chicago (brad.stanek@ms.com), and Paulina Matel, CFP, vice president with The Stanek-Haack Group at Morgan Stanley in Chicago (paulina.matel@ms.com).
In the powersports industry, a poor hire can quietly drain your business. Recruiting and onboarding the wrong person can cost your company hundreds of thousands of dollars over time. Lost productivity, lower morale, damaged customer relationships, delays in reaching growth or profit goals, and the expense of doing it all over again can add up quickly.
According to the U.S. Department of Labor, a bad hire is estimated to cost a company at least 30% of an employee’s first-year earnings, and the cost can be much higher for a misfire at the senior level. Most hiring failures result from either a flawed process or a breakdown in managerial behavior. The good news is that both areas can be improved. Here are some common hiring mistakes we see and how to avoid them.
The best results come from being selective and intentional, not reactive. Too many employers wing it, interviewing job-post applicants instead of proactively pursuing the right people.
Begin by determining your organization’s needs. Ask yourself: How can this new hire address our challenges? Ensure your job description highlights both the technical skills and interpersonal qualities necessary for success. Set clear, measurable goals and performance standards. A well-planned, strategic approach attracts better candidates and helps avoid wasting time or misalignment later.
Every dealership has a story, and candidates want to hear it. Talk about your founder’s background, the company’s milestones, community involvement, and what makes your workplace unique.
As full-time recruiters, we spend a lot of time “marketing” each role to potential candidates. We highlight our client’s values, culture, and team success stories. Remember, top performers aren’t just looking for a paycheck; they want to be part of something they believe in.
A confusing pay plan can turn off candidates late in the process. Be prepared to discuss the pay structure, benefits package, and performance incentives early on.
If your pay plan is complex or layered, sharing historical data—including pre- and post-COVID years—and future projections can be helpful. When a candidate doesn’t see the full picture, offers may become less attractive, and the process can fall apart.
We don’t oversell the opportunity, nor do we undersell it. Transparency builds trust, and trust is key to long-term retention.
A well-thought-out plan results in faster, smoother hiring. Be prepared to act quickly when you find a qualified candidate. Delays in communication or decision-making are among the main reasons strong candidates lose interest.
When expectations don’t match reality, both sides suffer. Maybe the role was not described properly, or the company’s culture was misrepresented. On the other hand, the new hire might not live up to performance standards.
Before speaking with candidates, we reverse-engineer the job description and our client’s preferences into interview questions. We frame questions based on the position requirements, not the current employee’s habits, and apply consistent scoring to identify strengths and gaps. A structured interview process significantly improves hiring accuracy.
Even the best candidate can fall out if personal or logistical barriers aren’t discussed early. Don’t assume anything. It’s important to explore potential relocation challenges, family or school considerations, lease agreements, and regional differences such as cost of living and climate. The goal is to prevent surprises that could derail an otherwise perfect match.
We prepare a position overview that highlights our client’s location, the cost of living, and median home prices, and provide weather intel if they are unfamiliar with the region. We discuss what makes the area special, including ride routes, outdoor recreation, blue-ribbon schools, community events, and other lifestyle perks. Combining this with an accurate job description and a commitment to providing timely feedback will help you stand out from the competition.
Skipping essential steps, like in-person visits, reference checks, or background screening, can have serious consequences. Unstructured interviews, rushed decisions, or settling for an average candidate are costly and time-consuming mistakes.
Invite your finalist and their spouse, if applicable, to visit the dealership and the community. Include other department leaders in the interview process. Well-rounded feedback and a thorough evaluation process pay off later.
Every high-performing professional should be able to demonstrate how they’ve “moved the needle.” Whether it’s revenue growth, margin improvement, expense control, or staff development, measurable impact reveals the real story.
We ask our candidates to document their “needle movers” before presenting them to clients. This practice separates achievers from participants and ensures you’re hiring someone who delivers results, not just effort.
Don’t ease off the throttle. The first 90 days are critical. Schedule regular check-ins, offer coaching or leadership training, and recognize early wins. Continued communication strengthens engagement and helps solve small issues before they grow. When you invest in your new hire’s success, you’re also investing in your company’s long-term stability.
Hiring combines art and science, often influenced by luck and timing. The most successful dealerships see talent acquisition as a strategic effort rather than an afterthought.
Ultimately, hiring smarter isn’t just about filling a role; it’s about fueling your organization’s growth with the right people, in the right positions, at the right time.
Jan Plessner is the founder and CEO of Action Recruiting. Her client roster includes small and large individual powersports and motorcycle dealerships, as well as large multilocation dealership groups and networks. The firm also caters to aftermarket companies, service and support-oriented agencies and select manufacturers from coast to coast.
By Jacob Berry
Contributor
If you’ve ever thought about selling your dealership “someday,” here’s a wake-up call — someday comes faster than you think.
In a recent Dealership Fixit Podcast episode, I sat down with Courtney Bernhard from Performance Brokerage Services, one of the leading firms handling dealership buy-sells across powersports, automotive, and marine. Bernhard’s team has managed hundreds of transactions across Harley-Davidson and metric stores nationwide, and her insights cut right to the reality of what owners get wrong when it’s time to sell.
Whether you’re 24 months from retirement or just curious about what your store’s worth, this conversation delivers a reality check that every owner should hear.
For the first time in decades, there are more sellers than buyers in the powersports space.
Bernhard explained that her firm is seeing an aging dealer body with fewer succession plans in place. Kids who once planned to take over are choosing different careers, and after years of heavy post-Covid workload and economic uncertainty, many owners are simply tired.
Meanwhile, automotive dealers, once eager to diversify into powersports, are now stepping back. “They’re used to one OEM, massive revenue, and predictable margins,” Bernhard said. “Powersports looks a lot different. Ten franchises under one roof, smaller markets, and a lot more complexity.”
That doesn’t mean there’s no demand, it just means buyers are more selective than ever.
You’d expect the biggest dealbreakers to be about profits or floorplan issues. But Bernhard says the “silent killers” are almost always organizational, not financial.
At the top of the list:
Messy financials. “I can tell within seconds if a dealer is in a 20 Group,” she said. “The clean ones always are.” Lenders lose confidence fast when P&Ls are disorganized or full of unverified add-backs.
Personal expenses on the books. Owners often run personal vehicles, boats, and even vacations through the business. Once it’s time to sell, those expenses can’t be justified to a bank.
No succession or estate plan. Bernhard has handled multiple cases where an owner passed unexpectedly, with no clear paperwork, frozen floorplans, and employees unable to access funds. “The family is grieving, the OEM is demanding documents, and the business can’t even order product,” she said.
Outdated parts and obsolescence. That back room you’ve been meaning to clean? It’s now a liability. “Every obsolete item gets counted and charged against you,” she said. “It’s costing you money twice, once when you bought it and again when you sell.”
If your dealership can’t function without you, it’s not ready to sell.
If you’re even thinking about selling in the next couple of years, Bernhard’s advice is clear: start now.
She recommends beginning with four key actions:
Clarify your motivation. Why do you want to exit? Burnout, retirement, health, or lack of succession all create different timelines and strategies.
Clean your balance sheet. Get organized, reconcile inventory, fix depreciation schedules, and stop running personal expenses through the store.
Evaluate your advisory team. Many dealer CPAs and attorneys are retiring too. “Make sure your trusted partners are still going to be there to help you through the sale,” she said.
Get your paperwork and estate plan in order. Update your wills, life insurance, and OEM notifications. Don’t wait for a crisis.
One of the biggest factors in any sale is the property itself. With high interest rates, buyers today are more likely to lease with the option to buy rather than take on full ownership right away. Sellers, in turn, are becoming more flexible, sometimes carrying notes or keeping ownership of the dirt to create cash flow.
Then there’s your team. “Your technicians and managers are part of your goodwill,” Bernhard said. “Buyers want to know who’s staying and who’s leaving.”
Retention bonuses for key employees can help ensure a smooth transition and protect the dealership’s value during the sale.
Every dealer wants to know one thing: what’s my store worth?
Bernhard’s answer: “It’s worth what a buyer is willing to pay and what you’re willing to sell for.”
There’s no magic formula. Multiples depend on brand, market, geography, financial health, reputation, and even how well your people can be replaced. “We’ve had buyers pay full price for a single franchise, buy the real estate, and hand back the rest,” she said. “Sometimes it’s all about one brand or one territory.”
Bernhard’s closing advice hit home for every owner: “Even if you think you’re years away, get your house in order now. Have your paperwork ready, know your numbers, and clean your shelves. Because the moment you need to sell, you’ll wish you started today.”
Whether you’re passing the torch, protecting your legacy, or just keeping your options open, preparation is the single best investment you can make.
Connect with Courtney Bernhard at performancebrokerageservices.com. And listen to the episode on The Dealership Fixit Podcast, available on Spotify, Apple and YouTube.
When was the last time you received a letter from an OEM notifying you that your dealership’s area of responsibility (AOR) was being expanded or reduced? Did you take the time to analyze how that change could impact your sales performance, or did you simply file the letter away?
Too often, dealers choose the latter approach and fail to recognize that an AOR adjustment can significantly affect performance metrics until it’s too late.
It’s common for OEMs to modify a dealership’s AOR, which is often based on census tracts or other geographic criteria. While a letter announcing an AOR change may seem routine, the implications can be substantial.
OEMs are increasingly reevaluating territories as part of broader strategies to adapt. Recent trends show OEMs are tightening control over dealer networks and experimenting with new distribution models. For example, OEMs may consolidate or redistribute AORs for many reasons, including:
Digital retailing and omnichannel models: As more consumers shop online, OEMs are adjusting territories to create customer experiences across physical and digital channels.
Network consolidation: Some OEMs are reducing AORs or adding new points for additional market coverage and/or to prepare for direct-to-consumer strategies.
Performance pressure: OEMs use AOR changes to push dealers toward higher sales targets and increase customer satisfaction scores.
These trends underscore why AOR changes are not administrative details, but strategic moves that can reshape your dealership’s competitive landscape. These changes often manifest through AOR adjustments, which can impact your competitive position overnight.
If your AOR is expanded, expect your sales performance calculations to decline. OEMs typically measure dealer performance as a percentage of average sales penetration within a state or region. When your AOR grows, the total number of regional sales used in the calculation increases, which makes it harder for your dealership to maintain the same penetration rate. In other words, you could go from being a top performer to appearing underperforming overnight.
Conversely, if your AOR is reduced, it may signal that the OEM plans to add a new dealership in or near the territory removed from your AOR. You will likely also lose OEM-driven marketing and warranty recall opportunities for customers in that area.
When you receive notice of an AOR change, act immediately:
Compare territories: Review your current and proposed AOR side by side. Consider geographic factors, such as mountains, rivers, or major highways, that influence customer behavior.
Assess competition: Determine whether the new AOR increases competition with existing or future dealerships.
Communicate concerns: Raise any objections with the OEM in writing. If the OEM does not address your concerns, you may have a statutory right to protest under your state’s franchise law.
If you believe an AOR change will harm your dealership, you may have legal recourse under your state’s franchise laws. These statutes often prohibit OEMs from making arbitrary or unreasonable changes to a dealer’s territory. Remedies can include filing a protest with your state’s motor vehicle board, seeking injunctive relief, or pursuing damages for lost business opportunities.
Consider proactive these strategies:
Data analysis: Quantify the impact of the AOR change on your sales performance metrics.
Customer outreach: Strengthen relationships in areas you may lose and expand marketing in new territories.
Operational adjustments: Evaluate staffing, inventory, and marketing plans to align with the revised AOR.
Most state franchise laws impose strict timelines for filing a protest — often as short as 45 days from the date you receive notice. Missing that deadline could mean forfeiting your rights, so act quickly.
Changes to your AOR are not administrative details, they can reshape your dealership’s competitive landscape and performance metrics. Stay vigilant, analyze every change, and consult legal counsel promptly if you have concerns. Protecting your dealership starts with paying attention.
Hilary Holmes Rheaume, Esq., Attorney at Bernstein, Shur, Sawyer & Nelson, P.A., Manchester, New Hampshire. She can be reached at hrheaume@bernsteinshur.com.
Off-Road Motorsports Hall of Fame inducts Fox Factory founder Bob Fox
There are moments in this industry that remind us why we do what we do — moments that strip away the daily grind of sales targets, supply chain headaches, marketing plans, and the constant sprint toward the next model year. Moments that bring us back to the beating heart of powersports. For me, that moment came at this year’s Off-Road Motorsports Hall of Fame (ORMHOF) induction ceremony, where my family had the privilege of celebrating a legend — Bob Fox.
If you’ve spent any amount of time in off-road, you already know the name. Fox isn’t just a brand; it’s a benchmark of performance so deeply embedded in our industry that it’s woven into the way we talk about suspension. But sitting in that room, surrounded by the other amazing inductees, pioneers, racers, builders, dreamers, and industry families who built this world long before it became a business,
I realized just how much more there is to the people behind the
iconic names.
For my family, the honor was personal. Bob Fox is not just a visionary — we consider him part of our story as most of my siblings and I worked at Fox Factory during our childhood and into our long-term careers. To witness him walk onto that ORMHOF stage, finally receiving recognition that was decades overdue, was emotional in a way I didn’t expect. It wasn’t just his induction; it was an induction of everything he stood for: relentless curiosity, unapologetic innovation, humility, and a lifelong dedication to making machines — and the people who drive them — better.
As I listened to the stories shared, I couldn’t help but think about how many of us in this industry owe part of our careers to the people like Bob who came before. People who weren’t afraid to break something in the name of making it better. People who spent late nights in garages before there were CAD models or data acquisition systems. People who were guided not by market share, but by their passion and a pure pursuit of performance.
And as much as the ceremony honored these legends, it also reminded me how interconnected this industry truly is. It’s a world started and built by families, and sitting with mine that night — watching Bob accept his place among off-road’s greatest contributors — brought a rush of memories from my own early days at Fox, working alongside people who shaped my path both personally and professionally and which eventually launched my marketing career.
As those memories surfaced, I found myself even more attuned to the emotion filling the room. One by one, the inductees shared stories of sacrifice, grit, loss, breakthroughs, and the people who stood beside them through it all. There wasn’t a dry eye in the audience—several times.
The speeches weren’t just reflections on careers; they were love letters to the people and moments that shaped them. You could feel decades of passion and perseverance echoing through every word. And in that moment, it was impossible not to feel the weight of what this industry truly represents: heart, heritage, and a community bound together by more than the machines we build or the races we win. This wasn’t just nostalgia — it was clarity. A reminder that powersports isn’t just something we work in. It’s something we belong to.
The ORMHOF ceremony is unique in that way. Yes, it’s a celebration of elite accomplishments, but it’s also a gathering of people who understand the sacrifices behind every win and the journey behind every breakthrough. From the engineers who rethought the physics of suspension, to the riders who pushed machines — and their bodies — to the edge, to the business owners and dealers who kept the sport alive through downturns, booms, and everything in between. When you’re in that room, you’re not thinking about quarterly numbers. You’re thinking about legacy.
And that’s what struck me most: how important legacy is to the future of this industry.
For dealers reading this, especially as we enter the final stretch of the year, it’s easy to get caught in the operational weeds. Inventory pressure, holiday promotions, end-of-year closeout strategies — December is always a whirlwind. But I challenge you to take moments like these and let them recenter you. Ask yourself:
What is the legacy you are building for your business, your customers, and your community?
What stories will represent your dealership years from now?
Which relationships, innovations, and acts of service will outlive the monthly numbers?
The brands and dealerships that endure — the ones that become generational names — are those grounded in something deeper than transactions. They are built by owners and teams who are driven by passion, built by families who show up not just for the business but for the people in it, and built on the belief that powersports changes lives.
Bob Fox embodies that spirit. His induction wasn’t just a celebration of the past; it was a reminder of what the future of this sport must continue to be: bold, innovative, family-rooted, and community-driven.
Walking out of that ballroom, I felt more committed than ever to the work we do as leaders, marketers, dealers, and storytellers in this industry. Moments like this remind us that our job isn’t simply to sell machines. It’s to foster a lifestyle, elevate a community, and preserve the legacy of those who built the path we ride on today.
Congratulations again to Bob Fox — an icon whose influence will continue shaping off-road for generations. And thank you to the Off-Road Motorsports Hall of Fame for giving our industry a place where legacies live on.
As we close out the year, let’s take inspiration from the legends among us and recommit to building something worthy of being remembered.
Till next time, shiny side up and checkered flags!
Melissa Coffey is a two-time Powersports Business “Women With Spark” award winner and a longtime powersports and motorsports industry leader with deep expertise in brand building, demand generation, and growth strategy. She now leads Catch Strategy—her boutique consultantcy providing fractional CMO-level marketing leadership, strategic planning, and execution support for companies across the powersports and motorsports markets.
When I walked back into my old dealership, the mission was simple — save it. Get it from bleeding cash to breaking even in 90 days. (You can read along with that journey in “The Turn Around Project,” published in Powersports Business.)
But from the beginning, I knew that simply balancing the books wouldn’t be enough. If this place was going to truly make it — not just survive but thrive — we’d have to rebuild it from the inside out.
After nearly a decade of working with dealerships across the country, I already knew the truth: our industry doesn’t run on logic. We don’t sell necessities — we sell passion. We sell freedom, adventure, and belonging. We sell fun.
But walking back into the store made it clear what we really needed to fix. The problem wasn’t just financial — it was emotional. The experience we were giving customers didn’t match the emotion we were selling. And until we fixed that, the store would never become the incredible operation it has the potential to be.
Before the turnaround work began, I thought: If we can make the experience match the customer’s expectations, this place will turn around in no time.
I was wrong — or at least, not completely right.
The truth is, customers expect an experience we can’t consistently deliver. Not because we don’t care. Not because we don’t want to. But because it’s nearly impossible to do the job and smile through the chaos at the same time.
I’ll never forget what one of my best friends said after visiting my store back when it was humming. He looked around, nodded, and said:
“Everyone’s always staring at computer screens.”
It wasn’t meant as an insult, but it landed like one. My instinct was to defend my team: Yeah, they’re slammed. It’s nonstop. If they look up for too long, the work piles up and that’s when customers get upset.
But that — right there — was the problem.
Customers don’t come in to see us grind. They come in to feel seen. To feel like part of something bigger — a community, a lifestyle, a tribe. But instead, they’re often greeted by the back of a monitor and a burned-out expression.
That doesn’t build excitement. It doesn’t build loyalty. It doesn’t build trust.
It just looks like we’re showing up to get through the day.
The current dealership model — the one we’ve built composites around, the one we staff to, train on, and measure success by — is designed around operations first, experience second.
And on paper, that makes perfect sense. The dealership must survive before it can thrive, right?
But what if that logic is backward?
I know how radical that sounds. Suggesting that the customer experience should come before the dealership’s bottom line might seem naïve — or even career suicide for someone in my position. But here’s what I believe to be true: when the experience is exceptional, the profits follow.
Customers who feel connected come back. They buy more. They bring friends. They become advocates.
So why don’t more dealerships lead with that philosophy? Because we’re trapped by the tools that define how we operate. The software dictates the process, and the process dictates the experience. And in most cases, those systems weren’t designed with emotion or connection in mind — they were designed to manage transactions, not relationships.
That’s the part we’re flipping upside down.
What if we started by designing the ideal customer experience, then reverse-engineered the processes — and built the software — to make it possible?
That’s the experiment.
Now that we’ve stabilized this dealership, we’re turning it into something new — The Dealer Lab.
This store will serve as a real-world test site for what the future of the dealership could look like. A place to reimagine every part of the model — from staffing to processes to software — around a single mission: creating a better ownership experience.
Here’s how it works:
We’ll meet with industry thought leaders and innovators.
We’ll share those conversations publicly on The Dealer Lab Podcast (available on YouTube and Spotify).
Then, we’ll take those ideas and turn them into real processes, real systems, and real software — testing them live, right here, in this dealership.
If an idea works, we’ll show you exactly how.
If it fails, we’ll show you that too.
Because the only way we move the industry forward is by experimenting in the open.
If you’re as curious about the future of dealerships as we are, follow along. Watch the episodes. Join the conversation. Or better yet — be part of them.
We’re inviting a small group of forward-thinking dealerships to participate in Ownex Cohorts — teams of operators testing these ideas in their own stores, learning together, and shaping what comes next.
This industry doesn’t need another motivational slogan. It needs a movement — one grounded in data, empathy, and the courage to rebuild from the customer outward.
The work will be hard. The results will be real. And the time to start is right now.