For the last 90 days, PowerSports, RV, and Marine dealers have been on a roller coaster ride. Many thought they would be shut down for months, and now the same dealers are concerned about running out of inventory. Many of the OEMs are just now resuming production, and they are overwhelmed with orders from dealers.
Before you go placing those massive new vehicle orders, I’d challenge you to determine what your true market opportunity really is, and then place realistic orders to satisfy the demand. With many dealers having run out of product, one customer might reach out to 5 or more dealers looking for a specific model. In the end, that customer is only going to buy that vehicle from one dealer, not all 5.
If every dealer places orders based on presumed demand, this fall is going to see an implosion of margins that will make the last recession look like a time of prosperity. Current data on COVID infections makes it clear that the curve is no longer flattening and it’s likely we’ll soon be facing a rate of infections that will exceed April and May. The last thing we need to do is to extend our roller coaster ride into 2021.
Selling vehicles and making money is fun. Selling vehicles at a loss is not.
#powersports #rv #marine #inventory #spader #leads #Customers #Ghosts