Optimists often call me a pessimist, but I call myself a realist. I make decisions off the data at hand. For most powersports dealers it has been a good year, with the demand in unit sales more than making up for the lack of apparel sales and the complexities of running a service department during a pandemic. Margins are up (if yours aren’t then you missed out) and inventories are running thin (both on the showroom and in the pipe).
With all that being said, dealers are placing orders like the good times are never going to end. Yes, we have been the beneficiary of operating in an industry that is perfect for social distancing. But what really sustained the economy was the Fed running the printing processes at full capacity for the last 4 months. That can’t last, and for everyone outside of the government, we all know that loans need to be repaid (PPP excluded).
With an election in less than 3 months, Congress will pass another stimulus bill as re-election prospects hinge on it, but it won’t be as big or easy as the last one. We’ve also got an election to deal with, and a widely available vaccine is still at least 6 months out.
Put some thought into those orders you are signing.
#Powersports #Marine #RV #Spader #Inventory #COVID