Powersports Business July 2025 | Page 9

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OPINION

Powersports Business • July 2025 • 9
FROM THE EDITOR
INDUSTRY PODCASTS

A new hire, pre-owned preview, and breaking up with an OEM

Some months, one topic stands out above the rest and makes for a neat, focused column. This isn’ t one of those months. A lot is going on across the powersports industry right now— staffing, market shifts, new contributors, and even how and
BRENDAN BAKER where we’ re finding inventory— so I’ m using this space to hit a few important points that I think are worth your time.
Let’ s start in-house with some news from our editorial team. We’ ve added a new Associate Editor: Chris Officer. And yes, we asked— despite the name, he’ s never been in law enforcement. What he has done is serve in the U. S. Marine Corps, and he brings that discipline and sharp thinking into his work as a journalist. Before making the move back to Minnesota during the pandemic, Chris lived in California and reported for a regional business publication. While he may be new to the powersports world, his writing chops and analytical mindset are already proving to be a strong asset to our coverage.
Chris will soon be getting out in the field, visiting dealerships and industry events as he ramps up for our Accelerate Conference in Orlando this coming January. If you see him on social media or at a show, give him a warm welcome— he’ s the guy with thoughtful questions and a quick smile, learning the ropes and already helping us tell your stories better.
Now, shifting gears to something many of you have been watching closely: the pre-owned market. For next month, we’ re taking a deeper look at pre-owned sales trends, and we’ ll be tuning in to the upcoming NPA and NPDA webinar later this month to hear what the data— and the leaders— are saying.
However, ahead of that, I wanted to highlight a thought-provoking LinkedIn post from Mark Sheffield. He recently asked a simple but critical question: Where is the inventory coming from, and how is that segment performing? Mark also ran a quick survey, and although it wasn’ t voluminous, the responses that came in were from dealers with significant experience in the used space. The takeaways?
• Used Inventory Sources: Trade-ins are still the main pipeline for most dealers, but many are expanding their efforts— reaching out to customers directly or running dedicated purchasing centers to acquire more used units. It’ s a shift in strategy, and a smart one, given how tight inventory was during the height of the pandemic.
• Wholesale Sources: Unsurprisingly, National Powersport Auctions( NPA) remain the dominant force in the wholesale market. No close second, no big surprises— just consistency and scale.
• Sales Performance: Results were split. Some dealers reported higher sales of pre-owned vehicles this year, while others reported the opposite. It’ s a fragmented picture, but one worth watching closely.
• Margins: Here’ s where it gets interesting. About half of the dealers Sheffield surveyed reported improved margins on pre-owned units, and about a third said margins are flat. That’ s encouraging— especially as new unit incentives and price pressures continue to squeeze profits.
This all raises a bigger question: How is preowned performing in your store right now? I’ ve heard it said that if“ pre-owned” were an OEM, it’ d be the top-selling brand in the industry— and there’ s truth in that. With the diversity of machines, price points, and product types available, used inventory fills gaps for consumers that new inventory sometimes can’ t. It also offers buyers an entry point during tighter economic times.
But how you acquire that inventory is just as important as how you sell it. During Covid, dealers couldn’ t get used units fast enough( or new units for that matter). Now, we’ re seeing more creative strategies, including consumer buyback programs, digital appraisals, and even social media calls for specific models. It’ s a dynamic part of the business, and we’ ll be watching it closely.
On that note, let’ s talk about the summer season. We’ re well into June as I write this, and I’ ve been hearing mixed reports from dealers. Some say traffic is down. Others say the market feels“ soft.” It’ s early, and we don’ t have hard data yet— but what are you seeing at your store? Are you pacing to plan, falling behind, or maybe even beating your own projections?
During a recent Power Hour taping at East Central Motorsports in Kent, Ohio( not far from where my family camps in our little RV each summer), I had a great conversation with owner Brad Tews about shifting buyer behavior. Brad told us that today, it’ s not usually the parents buying machines for their kids— it’ s the grandparents. Why? Disposable income is tighter for young families, and grandparents with a bit more financial wiggle room are stepping in to make those purchases.
He also said that many buyers are“ stepping down” a tier. That means customers who used to default to premium brands are now taking a serious look at value brands and Tier II OEMs. This is a significant trend to watch. If you’ re a dealer carrying those lines, you may be in a stronger position than you expected— especially if you can communicate the value proposition of those products.
And finally, while I don’ t often preview specific articles in this column, I want to flag one in this issue that you shouldn’ t miss. Contributor Hilary Holmes Rheaume tackles a sensitive but essential topic: how to break up with an OEM. If you’ ve ever had to do this, or are considering it, you know it’ s not just an emotional decision— it’ s a legal and operational one, too. Hilary brings a ton of experience as legal counsel in the powersports, automotive, and equipment space. Her article offers actionable advice and best practices that can help you navigate what’ s often a very tricky process.
That’ s a wrap for this month. We’ ll keep watching the trends, talking to the people who shape this business, and asking the tough questions. And as always, if you have a story worth telling, we’ re listening.
EP
. 31 POWER HOUR: MOTORCYCLE MALL Brendan chats with John Resciniti, owner of the Motorcycle Mall in Bellville, New Jersey and partner in the luxury apartment and retail project REV by Vermella. Courtney Mulligan is the vice president of marketing at Russo Development, which helped spearhead this unique project with powersports roots.
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