Powersports Business June 2024 | Page 22

22 • June 2024 • Powersports Business

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Denago Powersports leans into the youth market and has big plans for the future

Getting to run around Glen Helen was a “ bucket list ” item , and the Denago machines were at home on the Mini Moto track .
BY BRENDAN BAKER EDITOR IN CHIEF
We recently joined Denago Powersports at the legendary Glen Helen Raceway in San Bernadino , California . The relatively new brand showed off some of its latest products and let the media test-drive them to get a feel for the vehicles and provide feedback to the manufacturer .
While Denago is poised for significant growth as it expands its dealer network , its expansion also aligns with the start of the riding season , which serves as the perfect backdrop for enthusiasts to hit the trails .
Denago ' s general manager , David Garibyan , says its dealer network now spans the entire United States , offering a comprehensive range of vehicles , from youth ATVs to full-sized dirt bikes . And while the company ' s dirt bike line is fully integrated into dealerships nationwide , four of its ATVs , including models tailored for young riders , will also soon be available on dealership floors .
The company ' s headquarters is in Irving , Texas , with a key warehouse in Chino , California . Additionally , Denago is set to open a new warehouse in Tampa , Florida , later this year to enhance its distribution capabilities across the country .
Denago Powersports has been in the market since last September , when the company launched the brand at the Sands Sports Super Show in Orange County . “ Everything has been going well so far with the press ride ,” says Garibyan . " But it ' s another thing when industry professionals come and actually touch , feel and drive the vehicles ."
The Denago team was looking for feedback from the media , and a little PR never hurt either . Garibyan told us in an interview for our Power Hour podcast that Denago Powersports is positioned as a premium brand that targets affordability for families to get into the sport .
" We make nice premium vehicles , including electric , but we make them affordable so families can get into the sport . As we all know , the sport is an incredibly great way of spending time with family , being outdoors and conquering new adventures . But it is expensive . Our way of doing things is to make premium products the whole family can afford that won ' t break the bank ."
For now , Denago ' s model range is aimed at youth riders and entry-level riders ( beginners ). However , some seasoned adult riders enjoy the youth models , too , especially the e-Hawk 6 electric ATV , which is surprisingly fun at 15 mph . One of Denago ' s sales reps even uses one to walk his dogs around his neighborhood , so these machines have many uses .
" Right now , we have our MX series of dirt bikes and pit bikes , and then we have our electric and gas-powered ATVs . The Y6 electric ATV features a lithium-powered , removable battery , and an app for speed control and yard boundary . There are few machines out there like this one ," Garibyan shares . “ We have a gaspowered Y6 , Y10 and G16 ATV from there . So we have a range of ATVs . They come in different engine displacements up to 300cc .”
Denago launched three different models at AIMExpo in February . " We had a 200cc utility ATV , a 250cc Daytona that ' s a sport ATV , and then our 300cc Freelander , which is fuel-injected ."
While dealers and industry types may have heard of the Denago name , they may not be familiar with all the divisions of Tao Holding Company in China . " We describe Denago as a
tree , and it ' s got multiple branches ," Garibyan notes . " Powersports is one of the branches on the tree . Denago EV , a golf cart brand , is another branch . And then Denago e-bikes is another branch . Together , it ' s a whole inclusive outdoor brand called Denago Vehicles ."
With Denago Powersports just getting started and signing up new dealerships nationwide , several models are already on showroom floors today . But some are in
Denago ’ s general manager explains a few of the design characteristics of its youth mini-moto lineup at press event held at Glen Helen raceway in San Bernadino , California .
Denago crew has some fun at the press event . General Manager David Garibyan is seen here pulling another Denago ATV with the e-Hawk 6 electric ATV .
prototype stages , as we stand today . " Several , like our dirt bike line , are already in the dealer network across the country . Also , three of the four ATVs are on dealership floors now .”
Denago offers a compelling value proposition for dealers , focusing on profitability and comprehensive support . The profit margins on Denago products are nearly double those of many current OEMs , making them an attractive option for dealers . This profitability extends even to entry-level products , ensuring dealers can maintain healthy margins across the product range .
Besides financial benefits , Denago provides extensive support for both consumers and dealers . This includes wholesale financing through North Point Finance and retail financing options via Synchrony , with plans to introduce additional financing partners . This full-spectrum support ensures dealers have everything they need to market and sell Denago products successfully .
Garibyan says that the youth segment is " pretty much all covered " at this point and on dealership floors . The next big push is for medium- to adult-size vehicles , which they will unveil in the next few months . That is the next phase of their plan .
Garibyan points out that the " Denago Difference ," as they are calling their marketing slogan , is the value proposition to dealers . The value proposition for Denago is profitability . The profit margins for a Denago product being sold are very gainful — almost double the margins that many competitors are offering . Even at a low price point for their entry-level machines , so dealers can make money .
" The nice thing about our company is that besides the profitability , we also have support for consumers and dealers with financing and retail financing . We have everything a dealer would need to sell our product and continue growing with the Denago brand .”