10 • May 2024 • Powersports Business

FROM THE EDITOR INSTA TIPS

We spoke with Denago Powersports GM David Garibyan at a recent press launch . He has big plans for the value brand , which already includes a lineup of youth ATVs and dirt bikes .

Is your dealership capitalizing on the top-of-mind marketing ease that Instagram offers ? Did you come up with an ideal way to showcase your customers in an effort to help spread the word about your shop and its employees ? If so , let us know . Powersports Business will highlight Instagram posts from a variety of dealerships in upcoming editions of the magazine .

Dealerships featured all follow the Powersports Business Instagram at @ powersportsbusiness . All posts featured will be photo or video in nature , with content from Instagram Stories not considered for this piece .

Got an Instagram tip that works at your dealership or one with which you do business ? Feel like raising the collective industry tide ? Let us know at mhubbard @ epgacceleration . com .

According to recent data , inventory levels are way up . In the auto industry , dealers are sitting on some of the highest inventory levels in years . Boat dealers , RV dealers , and , yes , powersports dealers are all reporting high inventory levels and waiting

BRENDAN BAKER for the season to kick into full gear .

With the U . S . economy growing slower than expected and inflation still higher than the Federal Reserve wants it to be , we are at an influx point . The term stagflation has even begun to be discussed by some pundits and prognosticators . This is where inflation , unemployment , and low economic growth converge to create an almost complete stalemate . Monetary policy can ’ t address all of it because helping one segment can have an opposite effect on another . We saw this in the late 1970s and early 1980s . As much as I am nostalgic for that era , that is one part I don ’ t want to relive .

The world is flat — not geographically but economically . With first-quarter earnings and economic reports coming in before our publishing deadline , flat is the new up .

GDP grew at a much lower-than-expected rate of 1.6 % ( almost flat ), and inflation is still a pest , buzzing around our heads enough to scare off our consumers who want to buy but either can ’ t afford to now , or are waiting for better conditions . But with the season just underway in most regions , it ’ s “ go time ” for dealers .

It shouldn ’ t be a surprise that we ’ re in a pickle right now , even though the U . S . is doing much better than the rest of the developed world regarding an economic recovery after Covid . But I can ’ t help but think the shoe was going to drop at some point ; it was just a matter of how high from which it fell .

I was reading a news story recently in which the JP Morgan CEO said he is not surprised by the mostly gloomy consumer sentiment right now . Inflation is too high , housing and rent are up , and many of the folks in the bottom 20 percent haven ’ t had a significant raise for at least 20 years .

While the top percentage earners made more during the pandemic , the middle and bottom didn ’ t fare as well ( despite government bailouts ). This is

distressing because we can ’ t rely on the wealthiest alone to buy our products . Baby boomers are still the biggest wealth holders in this country , and there are signs that they will pass on their holdings to their Millennial children at some point in the not-too-distant future . But Gen Z is struggling to keep up .

In recent data from Lightspeed on the PWC market , Generation X was the top purchaser of personal watercraft . Gen X purchased 44 % of the units sold , which , on average , spent $ 20,275 on the purchase . Millennials purchased 28 % of the units in this study and averaged $ 19,826 towards the unit purchase price . The Baby Boomer generation spent the highest amount on the unit purchase price , averaging $ 21,105 . Baby Boomers purchased 21 % of the units in this study . Generation Z spent the least at $ 17,595 and purchased only 7 % of the units in this study .

Consumers are more price-conscious than ever today , with everything costing more . And Gen Z is exceedingly cautious . But emotions still rule the day , and enthusiasts want to ride . They want a new toy to distract them from all the outside noise ( i . e ., elections , internet , court cases , and the like ). But are consumers going to step down to a value brand ? There is evidence that when prices heat up , consumers are willing to go to a lower level to get what they want … and a lot of that is a feeling or emotion from having a new machine .

Finally , we were in Ontario , California , for a recent press launch with Denago Powersports . We will be doing a feature on this event in the next issue , but a quick takeaway from the ride day was that these are great entry-level off-road machines that almost anyone can afford . The bikes are primarily for youth riders , but adults can ride them also , including the impressive little electric ATV that tops out at 15 mph . At first , it seems too tiny , but then you sit on it and take it for a ride . It is smooth and quiet and can move a “ slightly heavy ” middle-aged man up hills and over rough terrain with no problem .

We also sat down with the GM , David Garibyan , for a Power Hour podcast interview , which will be released soon . He has big plans for the brand , which Tao Holdings in China owns . The parent company produces millions of scooters and can build off-road vehicles in their factory , including a UTV , which Graribyan hopes to add to the lineup soon . While many dealers are rethinking their OEM mix for 2024 , Denago may have an answer for those looking to add a value brand .

HIGGINS POWERSPORTS @ higgins _ powersports

Followers 885

Higgins Powersports has an off-road test track and shared an employee ’ s in a side-by-side on the trail . The post reads , “ There ’ s nothing better than a gorgeous Saturday out riding the trails ! Thank you to everyone who came out to ride with us for Demo Day ! # offroading # demoday # testride # atv # offroad .” Whether your employees are on a trail for a demo day or riding with their friends and family , its important to show that employees share the same passion as their customers !

NASH POWERSPORTS @ nashpowersports Followers 13.6K Sometimes it ’ s better to show than tell ! Nash Powersports shared a video that zooms in on some features of a PWC . The video doesn ’ t include a voice over or explanation of the features , making the dealership seemingly confident in its product . Part of the caption reads , “ No Freight and No Set-Up + $ 1,000 Rebate going on Now on this RXP-X ! Exclusively at @ nashpowersports . # seadoo # seadoolife # nashtynation # dontstopbeingakid # fobsalesevent # rxpx300 # watercraft # az .” Captions can be short and sweet , but don ’ t forget hashtags to gain some visibility !

FOOTHILLS MOTORCYCLES @ foothillsmotorcycles Followers 794 Don ’ t forget to cater to the needs of existing customers and show them that you have their back Foothill Motorcycles recently shared some of the service products it carries to remind customers that it ’ s a one-stop shop and to bring some of its existing customers back into its doors . The caption reads , “ You don ’ t want to be stuck in the mountains high and dry ! Be sure to check your bike for fluids before you ride – we gotchu covered . # bmwmotorcycles # motorcycles # motorcycleservice # foothillsmotorcycles # ridemore24 .”