After a banner summer selling season, many powersports dealers are looking at half filled showrooms and empty warehouses. Most of the major OEMs have either just taken orders from dealers or are in the process of collecting them.
Where it is an option, many dealers are placing orders for excess inventory, the thought process being that the vendors will not be able to fulfill all the orders. It is a good strategy if you are the only one doing it, but when every dealer is playing the same game it can lead to catastrophic consequences.
Less than two years ago, RV dealers requested orders that were sometimes double what they thought they would need for the 2019 season. Suppliers had ramped up during the prior year, and spring snowstorms led to a late start to the season. Lots filled up quickly, and by the time the season got started it was a bloodbath. Many dealers saw losses of 25% or more of their anticipated margins. It was not pretty!
With what I am hearing, OEMs will not be able to fulfill current orders, but if we see a mild downturn around election time, this industry could get really ugly really fast.
Careful what you wish for. What will you do if it all comes at once?
#PowerSports#RV#Marine#Inventory#WishList#Flooring