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Powersports Business • December 2025 • 13
Changes to your dealership’ s AOR can have big consequences
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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 HILARY HOLMES RHEAUME 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.
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• 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.
IMPACT OF EXPANSION 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.
IMPACT OF REDUCTION 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 OEMdriven marketing and warranty recall opportunities for customers in that area.
WHAT SHOULD YOU DO? 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.
See Rheaume, Page 17
WHY OEMS ADJUST AORS 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:
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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.
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BERRY
CONTINUED FROM PAGE 12
she said.“ Sometimes it’ s all about one brand or one territory.”
MOST DEALERS DON’ T FAIL, THEY JUST DON’ T PREPARE
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.
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