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Powersports Business • July 2026 • 17

Sheffield believes many dealers make the mistake of allowing OEM programs to drive inventory decisions.

“ Getting on the OEM program hamster wheel is one of the biggest mistakes dealers make,” he says.“ Dealers end up chasing bonuses while selling units at lower and lower margins.”

The common lesson from all three experts is simple: inventory should serve the dealership’ s profitability goals, not the other way around.

THE HIDDEN PROFIT CENTER While inventory often grabs headlines, many 20 Group leaders believe the industry’ s greatest opportunity continues to be service.

“ Service, without question,” Sutton says when asked which department is most underappreciated.

Sheffield agrees.“ Service is one of the highest-margin products a dealer can sell, yet very few dealers focus on customer-pay business,” he says.

Strong service departments generate recurring revenue regardless of new-unit sales cycles. They improve customer retention, support F & I product sales, and often lead to repeat vehicle purchases.

Facey says service will become even more important as vehicles become increasingly sophisticated and customer expectations continue to rise.

“[ Powersports ] vehicles are becoming more complex, customer expectations are rising, and dealers who provide a better ownership experience throughout the life cycle of the product will be well positioned for future growth,” he says.

Many top-performing dealers are treating service as a business unit rather than simply a support department. They actively market service, monitor service absorption, and invest in technician development.

The same philosophy applies to parts and accessories. Facey believes dealerships often miss opportunities by failing to maximize accessory sales during the vehicle purchase process.

“ The biggest opportunity for accessory sales is at the time of purchase,” he says.“ Dealers need strong salespeople who can help customers make those machines their own.”

INVESTING IN PEOPLE Another recurring topic at virtually every 20 Group meeting is staffing. Finding and retaining technicians remains one of the industry’ s biggest challenges, but dealers are also focused on reducing turnover and building stronger cultures throughout the dealership.

Facey says the most progressive operators are developing talent internally.

“ Our most progressive dealers are building programs to grow technicians in-house and are working on company culture to retain them,” he says.

Sutton notes that recruitment and retention challenges extend well beyond powersports, making employee development even more critical.

For Sheffield, strong service departments often become a competitive advantage because they create positive experiences for both customers and employees.

“ When you see a truly great service department, it’ s a magical experience in how it drives additional sales and improves margins throughout the dealership,” he says.

ACCOUNTABILITY DRIVES RESULTS Perhaps the biggest reason dealers continue to invest in 20 Groups is accountability. Financial composites and benchmarking data are valuable, but they only matter if dealers take action.

The best 20 Groups create an environment where owners share challenges, learn from one another and commit to making improvements before the next meeting. That accountability often becomes the difference between knowing what to do and actually doing it.

As dealers look ahead to 2027, challenges will remain. Inventory management, affordability concerns, staffing shortages and emerging technologies such as artificial intelligence will continue shaping the industry.

Yet all three experts share a similar outlook. Dealers who know their numbers, manage inventory carefully, invest in fixed operations and focus on continuous improvement will be positioned to succeed.

And for many of those dealers, a 20 Group remains one of the most effective tools available. Facey’ s advice is straightforward.“ Join a 20 Group so you have benchmarks to see how you’ re doing and where your opportunities are.”

While Sutton says to scout your 20 Group carefully, because not every group is a fit. He says that a good group is like a family where the members pull for each other and pitch in to lend a hand if necessary.

In a business where small operational improvements can generate significant profit, that outside perspective may be one of the best investments a dealer can make.

B R O K E R A G E S E R V I C E S

MANASSAS, VIRGINIA

ACQUIRED BY

ACQUIRED BY PVM Enterprises from Lindsay Automotive Group

GEORGE C. CHACONAS JUAN C. PARDO MORGAN G. ROSS

For a confidential consultation, please contact us: Harley-Davidson & Powersports Division George C. Chaconas, Senior Partner, CBI / M & AMI Office: 813. 569. 6250 | Cell: 813. 245. 2535 Email: george @ performancebrokerageservices. com

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