By Chris officer associate editor
Six years ago, Capital Powersports wasn’t what you would necessarily call a thriving dealership. The Wake Forest, North Carolina-based dealer carried two brands, had around 15 employees, and was struggling to break even. Fast forward to today, Capital carries six brands, has nearly doubled its workforce, and has crept up its revenue numbers back into the black. General manager Kevin Dunn, who took over as GM in 2019, credits a better work environment, more brand offerings, and a stronger focus on fixed operations sales for the dealership’s turnaround.
“I started here six years ago, and the place wasn’t doing very well. It was bleeding about 20 grand a month,” Dunn says. “The dealership had all the growing pains of any store, both in staffing, marketing, and with the departments. So, it’s been challenging.”
Dunn says when he took over as GM, major unit sales were doing okay, but the dealership wasn’t performing well in fixed operations sales, such as parts, accessories, and services.
“If you’re a good store, your fixed ops should be paying for over 70% of your overhead. When I started here, it was at 18%,” Dunn says, emphasizing that Capital’s current goal is to have about 60% of overhead costs be paid from fixed operations. “We’re still suffering, and probably only at about 42%, but that’s a lot better than it was.”
He says it’s important for Capital to have its fixed operations reach that 60% to 70% sweet spot. It serves as a sort of safety net if sales happen to have a downturn, something the industry is currently going through.
Capital had been on a 15% growth track, but that slowed last year to 3%. Nevertheless, the dealership pushed out around 1,300 units last year, Dunn says, and was expecting to sell 1,450 units this year. However, with sales being slow nationwide, the dealership is just keeping up with its 1,300 mark.
“We’re having all the same problems that any fast-growing dealership is having,” Dunn says. “I warn my guys, ‘we’re going to have some aches and pains along the way,’ but we’re getting through them.”
Dunn would go on to say that it’s not necessarily the number of units sold that’s hurting his bottom line, but more from the aggressive promotions OEMs are putting on vehicle inventory.
“We’re still doing the volume,” he says. “It’s just our margins have shrunken this year and last because everybody’s discounting the hell out of everything to move the product. I’ve seen it before. It comes in waves.”
Another key reason for the dealership’s turnaround is the increased number of brands it offers. In June, Capital became an official dealer of Polaris Off-Road, its sixth brand. When Dunn first signed on six years ago, Capital only offered Honda and Yamaha. After a few years of showing the owners, Capital Auto Group, that there’s money to be made in this powersports business, Dunn was able to add two more brands — Kawasaki and Suzuki.
After adding all four Japanese manufacturers, Capital started carrying CFMoto in 2024 and has continued to be one of the region’s top performers. It currently sits in the top five in sales for each franchised brand it represents among dealers in the Mid-Atlantic region, which includes North Carolina, the northern half of South Carolina, and parts of Virginia.
The addition of Polaris did put some strain on the dealership. Operating out of a 32,000-square-foot space, Capital’s original deal was to put Polaris vehicles in its current service center and construct a new building for service. But construction costs and a crunched timeline made this option difficult. So instead, it decided to build a new, albeit temporary, 2,100-square-foot showroom space for the interior housing of Polaris ATVs and its smaller UTVs, along with a 10,000-square-foot landscaped area for the larger Polaris products.
Space is the main reason Dunn says Capital right now is keeping its brands at six. The dealership currently carries about $5 million in product at any given time and about 500 units.
“I couldn’t even add more if I wanted to, unless I had a lot more square footage,” Dunn says. “We are stuffed to the gills.”
As far as unit sales, Dunn says Capital is well-rounded regarding which type of vehicles are coming off the lot. Two-thirds of unit sales from most dealerships in the Mid-Atlantic zone are off-road, while Capital is more of a 50-50 split between on- and off-road. But with the addition of Polaris, he’s expecting a jump in his off-road sales figures.
“Polaris expects very big things out of us. So hopefully we’ll do with Polaris what we’ve done with the rest of the brands.”
As far as who’s buying the vehicles, Dunn says he’s seeing a trend at his dealership that’s encouraging. “We’re getting a tremendous number of new riders every single day into the store, and it’s so exciting to see that,” he says. “It’s one trend that I love seeing. Being somebody who’s been in the industry as long as I have, it’s always a great sign when you see lots of new riders entering the sport.”
Dunn says another big reason for Capital’s fast-growing success was the shake-up it did to the dealership’s work environment, from the management side down to its employees. When Dunn first came in, the prior GM didn’t have the best rapport with his employees or the customers. Coming in with more than 40 years in the powersports industry, Dunn was able to smooth over the dealership’s sales floor, hired qualified managers on the services and P&A side, and created an atmosphere that breeds success.
And Capital is continuing to add to its winning formula. The company recently onboarded five new hires, and with one or two more additions expected, the dealership is approaching 30 full-time employees.
“We’ve really changed over the years. I got a couple of guys here that have been with the dealership since the beginning,” Dunn says. “And they tell me, ‘Man, it’s so much different now than it was before your time.’ And that was my goal, but there’s still a tremendous amount of potential for us.”
Who’s moving the powersports industry forward? PSB wants to know. Nominations are now open for the 2025 Powersports Business Honors Awards, spotlighting individuals and dealerships that are raising the bar across the industry. The categories for peer- or self-nominations include:
40 Under 40
Women With Spark
Best in Class Dealerships
All nominations are due by Sept. 26, 2025. Winners will be celebrated at the 2026 Accelerate Conference in Orlando, Florida, Jan.18–20.
40 UNDER 40
The 40 Under 40 award honors rising professionals under the age of 40 who are already making a major impact — whether in dealership operations, customer experience, digital marketing, service efficiency, engineering, or tech innovation.
PAST HONOREES INCLUDE:
Landon McMath, owner and president of DRT Motorsports, expanded his side-by-side parts business and played a key leadership role in the ASA Clean Dune Project.
Hunter McCoy, owner of RJ Powersports, led a major expansion in staffing and operations while demonstrating hands-on leadership and a strong work ethic.
Trevor Messersmith, president of California Custom Trailers & Powersports, grew a family business under difficult circumstances and actively supports community causes like 4‑H.
Alec Morefield, GM at Slavens Racing, built a passionate marketing team that aligns brand expertise with customer engagement.
If you know someone redefining what’s possible in powersports, now’s the time to recognize them.
WOMAN WITH SPARK
The Women With Spark award honors outstanding female professionals who have demonstrated exceptional leadership, innovation, and impact across the powersports industry. These women are recognized for their dedication to advancing their roles, fostering positive change, and inspiring others within their organizations and communities.
PAST HONOREES INCLUDE:
Melissa Coffey – Executive Recruiter at Action Recruiting, and founder of CATCH Strategy, a consulting firm based in Austin, Texas. (Also a PSB contributor).
Courtney Bernhard – Partner in the Harley-Davidson and Powersports Division at Performance Brokerage Services.
Carrie Feinen – Business Account Executive at Torque Group.
Kayla Filipiak – Marketing Coordinator at Simply Ride, Eden Prairie, Minnesota.
Mandy Greasby – Senior Manager of Dealer & Industry Relationships at Rollick, Inc.
Kelly Allain – Executive Director of Business Development, CXI & Internet Sales, American Road Group
These women exemplify the qualities of vision, dedication, and excellence that the Women With Spark award seeks to celebrate. Their achievements continue to inspire and set a high standard for the industry.
BEST IN CLASS
The Best in Class Dealership Awards highlight dealerships that excel in key areas, including sales performance, finance and insurance (F&I), marketing, service operations, and customer engagement.
PAST HONOREES INCLUDE:
Brinson Powersports (Corsicana, TX) – Best in Class for Side‑by‑Side Accessory Sales: boosted accessory sales by showcasing $60K+ floor packages and launching a “Good‑Better‑Best” strategy, achieving ~17% of total sales on accessories
Onyx Moto (San Diego, CA) – Best in Class Pre‑Owned Unit Sales: drove a 42% increase in gross profit by leveraging data‑driven inventory selection and tighter purchasing practices
Sound Harley‑Davidson (Marysville, WA) – Best in Class for both Employee Satisfaction and New Unit Sales: prioritized employee incentives and community engagement, turning into a strong new‑ownership performer in their district
Redline Powersports Group (Myrtle Beach, SC) – Best in Class F&I: personalized financing solutions and expert staff boosted customer satisfaction and profit metrics
Whether it’s a breakthrough process or a high-performing team, now’s the time to showcase what makes your dealership a benchmark for others.
All award winners will be honored during a special ceremony at the 2026 Powersports Business Accelerate Conference in Orlando, Florida — bringing together dealers, manufacturers, and industry leaders from across North America.
Nominations are now open and can be completed in just a few minutes at powersportsbusiness.com. Self-nominations and peer nominations are encouraged.
The winners will embody the essence of these awards: driving growth while uplifting others around them, whether it’s a dealership team (F&I, Service Dept., or Sales) or an individual who stands out from the crowd. Let’s celebrate the people and teams defining what’s next for powersports!