Effective June 15, 2010, employers are required to notify their workers when there is any hexavalent chromium present in the workplace, even when it is below the permissible exposure limit (PEL). In the past, companies only had to inform employees when exposures exceeded the PEL. The Occupational Safety and Health Administration (OSHA) changed its rule in response to a lawsuit and U.S. Appeals Court directive.

Under the previous rule, companies were directed to monitor employee exposure and notify affected workers when levels exceeded the permissible level of five micrograms per cubic meter of air over an eight-hour, time-weighted average. Employers are required to perform periodic monitoring at least every six months if initial monitoring shows exposure at or above the action level (2.5 micrograms per cubic meter of air).

Hexavalent chromium is a naturally occurring heavy metal frequently used in paints, electroplating or as an anti-corrosion agent for metals such as stainless steel. Exposure can occur when workers spray paints containing chromates, operate chrome-plating baths or weld/cut metals containing chromium. OSHA contends the toxic chemical may irritate or damage the skin, eyes and respiratory tract, among other concerns. OSHA has established a webpage on the topic.

For more information, contact Stuart Gosswein at stuartg@sema.org.

The U.S. Environmental Protection Agency (EPA) has proposed a streamlined process for manufacturers for approving fuel conversion systems. The conversion systems allow light- and heavy-duty vehicles to run on alternative fuels (natural gas, propane, alcohol, electricity, etc.) while complying with Clean Air Act emissions standards. The EPA would establish a three-tiered compliance process based on the age of the vehicle.

Under the current one-size-fits-all approach, a certificate of conformity demonstrating emissions compliance must cover the vehicle and engine conversion system. The proposed rule would require a certificate only for newer vehicles (less than two years old). Conversion system manufacturers would need to perform certification tests to demonstrate the vehicle complies with exhaust and evaporative emissions standards as well as with on-board diagnostic requirements, but manufacturers could then apply a single set of test data to more vehicle and engine conversions than is currently allowed.

To certify alternative-fuel conversions for intermediate-age engines (more than two years old but still within their useful life), manufacturers would need to perform exhaust and evaporative emissions tests to demonstrate compliance with EPA standards and then forward that test data to the EPA with a statement that the OBD system will continue to operate properly after the conversion.

For vehicles that have outlived their useful life, the EPA intends to pick one of the following three options: 1) require conversion manufacturers to submit a detailed description of the conversion technology to demonstrate that it is well-engineered and should work, 2) conduct the same emissions testing as for the intermediate age vehicles or 3) submit the option one description along with an OBD diagnostic scan report.

For more information, contact Stuart Gosswein at stuartg@sema.org.

The U.S. Environmental Protection Agency (EPA) has proposed a streamlined process for manufacturers for approving fuel conversion systems. The conversion systems allow light- and heavy-duty vehicles to run on alternative fuels (natural gas, propane, alcohol, electricity, etc.) while complying with Clean Air Act emissions standards. The EPA would establish a three-tiered compliance process based on the age of the vehicle.

Under the current one-size-fits-all approach, a certificate of conformity demonstrating emissions compliance must cover the vehicle and engine conversion system. The proposed rule would require a certificate only for newer vehicles (less than two years old). Conversion system manufacturers would need to perform certification tests to demonstrate the vehicle complies with exhaust and evaporative emissions standards as well as with on-board diagnostic requirements, but manufacturers could then apply a single set of test data to more vehicle and engine conversions than is currently allowed.

To certify alternative-fuel conversions for intermediate-age engines (more than two years old but still within their useful life), manufacturers would need to perform exhaust and evaporative emissions tests to demonstrate compliance with EPA standards and then forward that test data to the EPA with a statement that the OBD system will continue to operate properly after the conversion.

For vehicles that have outlived their useful life, the EPA intends to pick one of the following three options: 1) require conversion manufacturers to submit a detailed description of the conversion technology to demonstrate that it is well-engineered and should work, 2) conduct the same emissions testing as for the intermediate age vehicles or 3) submit the option one description along with an OBD diagnostic scan report.

For more information, contact Stuart Gosswein at stuartg@sema.org.

	Collector Car Appreciation Day, July 8, 2011, is meant to raise awareness of the vital role automotive restoration and collection plays in American society.

The Specialty Equipment Market Association (SEMA) and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) Councils announced July 8, 2011 as “Collector Car Appreciation Day.”  The date marks the second commemoration in what will become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society.  SEMA and its councils are now working to secure a Congressional resolution to recognize the day’s significance.

“Last year, the United States Senate helped launch the first national Collector Car Appreciation Day by passing Senate Resolution 513 at our request,” said SEMA Vice President of Government Affairs Steve McDonald.  “As a result, thousands of Americans gathered at car cruises, parades and other events to celebrate our nation’s automotive heritage.  As we move forward, SEMA’s commitment to preserving and promoting the automotive restoration industry through its projects and programs is evident in this special day.”

S. Res. 513 was sponsored by Congressional Automotive Performance and Motorsports Caucus members Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC).  Senators Tester and Burr have been strong advocates for the automotive hobby in Washington, and the resolution reaffirmed their understanding of the cultural importance of collector cars.  The Caucus is an informal, non-partisan group that pays tribute to America’s ever growing love affair with the car and motorsports.  The Caucus recognizes the integral role collector cars have played in fostering our nation’s appreciation for the automobile’s unique historical place in our history.   

“On July 8, 2011, collectors and enthusiasts will host hundreds of events across the country,” said Laura Bergan, Chairman of SEMA’s Automotive Restoration Market Organization (ARMO) Council.  “We will proudly partner with individuals, car clubs and businesses as they organize car cruises, club gatherings and other educational events to celebrate the day.”

Rick Love, Chairman-elect of SEMA’s Hot Rod Industry Alliance (HRIA) Council said, “The industry endeavors to preserve our nation’s automotive heritage while providing well-paying, high-skilled jobs nationwide.  Collector Car Appreciation Day is a singular tribute to this industry and the millions of hobbyists it supports.”

SEMA will maintain a list of scheduled events to commemorate America’s time-tested love affair with the automobile.  Individuals, car clubs and business owners interested in publicizing events should contact Mike Dingell, Director, SEMA Action Network (SAN) at 202/783-6007, etc. 38 or miked@sema.org.  If you are unable to celebrate on July 8th, SEMA encourages events to be scheduled throughout the month of July.

 

	Collector Car Appreciation Day, July 8, 2011, is meant to raise awareness of the vital role automotive restoration and collection plays in American society.

The Specialty Equipment Market Association (SEMA) and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) Councils announced July 8, 2011 as “Collector Car Appreciation Day.”  The date marks the second commemoration in what will become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society.  SEMA and its councils are now working to secure a Congressional resolution to recognize the day’s significance.

“Last year, the United States Senate helped launch the first national Collector Car Appreciation Day by passing Senate Resolution 513 at our request,” said SEMA Vice President of Government Affairs Steve McDonald.  “As a result, thousands of Americans gathered at car cruises, parades and other events to celebrate our nation’s automotive heritage.  As we move forward, SEMA’s commitment to preserving and promoting the automotive restoration industry through its projects and programs is evident in this special day.”

S. Res. 513 was sponsored by Congressional Automotive Performance and Motorsports Caucus members Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC).  Senators Tester and Burr have been strong advocates for the automotive hobby in Washington, and the resolution reaffirmed their understanding of the cultural importance of collector cars.  The Caucus is an informal, non-partisan group that pays tribute to America’s ever growing love affair with the car and motorsports.  The Caucus recognizes the integral role collector cars have played in fostering our nation’s appreciation for the automobile’s unique historical place in our history.   

“On July 8, 2011, collectors and enthusiasts will host hundreds of events across the country,” said Laura Bergan, Chairman of SEMA’s Automotive Restoration Market Organization (ARMO) Council.  “We will proudly partner with individuals, car clubs and businesses as they organize car cruises, club gatherings and other educational events to celebrate the day.”

Rick Love, Chairman-elect of SEMA’s Hot Rod Industry Alliance (HRIA) Council said, “The industry endeavors to preserve our nation’s automotive heritage while providing well-paying, high-skilled jobs nationwide.  Collector Car Appreciation Day is a singular tribute to this industry and the millions of hobbyists it supports.”

SEMA will maintain a list of scheduled events to commemorate America’s time-tested love affair with the automobile.  Individuals, car clubs and business owners interested in publicizing events should contact Mike Dingell, Director, SEMA Action Network (SAN) at 202/783-6007, etc. 38 or miked@sema.org.  If you are unable to celebrate on July 8th, SEMA encourages events to be scheduled throughout the month of July.

 

	Collector Car Appreciation Day, July 8, 2011, is meant to raise awareness of the vital role automotive restoration and collection plays in American society.

The Specialty Equipment Market Association (SEMA) and its Automotive Restoration Market Organization (ARMO) and Hot Rod Industry Alliance (HRIA) Councils announced July 8, 2011 as “Collector Car Appreciation Day.”  The date marks the second commemoration in what will become an annual event to raise awareness of the vital role automotive restoration and collection plays in American society.  SEMA and its councils are now working to secure a Congressional resolution to recognize the day’s significance.

“Last year, the United States Senate helped launch the first national Collector Car Appreciation Day by passing Senate Resolution 513 at our request,” said SEMA Vice President of Government Affairs Steve McDonald.  “As a result, thousands of Americans gathered at car cruises, parades and other events to celebrate our nation’s automotive heritage.  As we move forward, SEMA’s commitment to preserving and promoting the automotive restoration industry through its projects and programs is evident in this special day.”

S. Res. 513 was sponsored by Congressional Automotive Performance and Motorsports Caucus members Senator Jon Tester (D-MT) and Senator Richard Burr (R-NC).  Senators Tester and Burr have been strong advocates for the automotive hobby in Washington, and the resolution reaffirmed their understanding of the cultural importance of collector cars.  The Caucus is an informal, non-partisan group that pays tribute to America’s ever growing love affair with the car and motorsports.  The Caucus recognizes the integral role collector cars have played in fostering our nation’s appreciation for the automobile’s unique historical place in our history.   

“On July 8, 2011, collectors and enthusiasts will host hundreds of events across the country,” said Laura Bergan, Chairman of SEMA’s Automotive Restoration Market Organization (ARMO) Council.  “We will proudly partner with individuals, car clubs and businesses as they organize car cruises, club gatherings and other educational events to celebrate the day.”

Rick Love, Chairman-elect of SEMA’s Hot Rod Industry Alliance (HRIA) Council said, “The industry endeavors to preserve our nation’s automotive heritage while providing well-paying, high-skilled jobs nationwide.  Collector Car Appreciation Day is a singular tribute to this industry and the millions of hobbyists it supports.”

SEMA will maintain a list of scheduled events to commemorate America’s time-tested love affair with the automobile.  Individuals, car clubs and business owners interested in publicizing events should contact Mike Dingell, Director, SEMA Action Network (SAN) at 202/783-6007, etc. 38 or miked@sema.org.  If you are unable to celebrate on July 8th, SEMA encourages events to be scheduled throughout the month of July.

 

	Powersports dealers report that side-by-side sales are up due to increased accessory offerings and a consumer need for utility vehicles.

Gart Sutton & Associates (GSA), a leading authority of retail profitability in the powersports industry, recently polled some of its 20-group powersports dealers to get a better picture of what was happening in the powersports industry from the front lines.

Sutton and his team of industry experts will present Powersports Dealer Update Workshops at the 2010 SEMA Show in Las Vegas, November 1–2, at the Renaissance Hotel next to the Las Vegas Convention Center.

GSA's poll revealed the following:

1. Dealer failures have been at a record high level for two years. Since some of these dealers were heavy discounters, this should help surviving dealers in affected regions. Many dealers who were not up on their performance-to-industry benchmarks and didn't respond quickly to reduce expenses relative to revenue never had a chance.

2. Current motorcycle sales continue to be down; 2008 was off 30%–40% from 2007 and 2009 was considerably off compared to 2008. Many dealers reported that March 2010 business was much better than last year, however.

3. Floor traffic is picking up, dealers are holding better margins, and some banks and credit unions are starting to free up money and "buy deeper" (lower credit scores).

4. Most dealers have reduced old inventory and are no longer "warehouses" for the manufacturers.

5. Parts sales and service work are strong, as customers are repairing rather than replacing their units.

Other positive indicators from March 2010 year-to-date compared with 2009 include:

• Overall store gross profit: up 2%
• Overall net operating profit: up 2.5%
• Personnel and administration expenses as a percentage of GP: down
• Percentage of revenue change: up more than 18% for groups reviewed
• New and pre-owned unit gross profit: up for all products except scooters
• Service labor margin: up 9%–10%
• F&I net operating profit $ PVS: up more than 160%

Current Unit Trends
Midsize street motorcycles and models with rebates are selling to today's budget-conscious customers. Sport bike sales remain slow but have picked up somewhat. Financing and insurance have been a problem here. These customers tend to be younger and many have poor credit. Off-road bike sales have been slow, except for a few models with high demand and low availability. Scooter sales have suffered as fuel prices remain relatively low.

ATV sales have been soft for the last few years, but are up from last spring. UTV ("side-by-sides") sales have been doing well. This market has grown due to wholegoods and accessory product expansion and improvements, combined with the need for utility vehicles. Some farmers, for example, are using these as a low-cost alternative to trucks and tractors for certain jobs.

Consumer Trends
Dealers report that today's consumers tend to be more mature with higher incomes and good credit histories, but take longer to close. They may come in four or more times before making a buying decision. Many have completed considerable web research. They know more about the products and what is on sale on dealer websites.

Marketing Trends
Most dealers report that traditional advertising is not producing. They are finding better results from social marketing, working trade/sports shows and community events.

Other Trends and Opportunities
Dealer Internet sales and using eBay to move obsolete inventory have changed dealership business structures. This profit center will only continue to grow. Social marketing through services such as Twitter, Facebook and YouTube has become more significant to powersports businesses. Dealers must become more creative and Internet-savvy to keep pace with the market.

Due to the reduction in the size of the dealer network, there is a huge opportunity for profitable growth as the economy slowly turns around. Product shortages and reduced competition mean dealers can hold better margins.

There are positive signs that the powersports business is improving. In order to survive the ups and downs of this market, controlling inventory and expenses must remain a priority. Dealers must also pursue a customer-satisfaction business philosophy. It is vital to have the right people in place to maximize every customer opportunity. There’s no reason to have "B" and "C" players on staff when "A" players are out there looking for work.

Keep your team sharp by providing ongoing, high-quality training, including the Powersports Dealer Update Workshops held in conjunction with the 2010 SEMA Show, November 1–2, in Las Vegas. Dealer Update Workshops at the 2010 SEMA Show are open to all powersports dealers. Don't miss this exceptional opportunity to receive high-level training from industry experts.

Eight powersports dealer-specific education workshops will cover essential P&A, F&I, sales, service and dealership management topics. Registration also includes two industry keynote speaker lunches and a special state-of-the-industry powersports panel you can't afford to miss.

Register Now!

Advanced registration*: $99 by October 17, 2010
Onsite registration*: $149 after October 17, 2010
*Includes lunch. Does not include required $25 SEMA Show registration fee due October 17, 2010 ($75 after October 17, 2010).

For more information, visit www.SEMAShow.com/PowersportsDealerUpdate.

	Powersports dealers report that side-by-side sales are up due to increased accessory offerings and a consumer need for utility vehicles.

Gart Sutton & Associates (GSA), a leading authority of retail profitability in the powersports industry, recently polled some of its 20-group powersports dealers to get a better picture of what was happening in the powersports industry from the front lines.

Sutton and his team of industry experts will present Powersports Dealer Update Workshops at the 2010 SEMA Show in Las Vegas, November 1–2, at the Renaissance Hotel next to the Las Vegas Convention Center.

GSA's poll revealed the following:

1. Dealer failures have been at a record high level for two years. Since some of these dealers were heavy discounters, this should help surviving dealers in affected regions. Many dealers who were not up on their performance-to-industry benchmarks and didn't respond quickly to reduce expenses relative to revenue never had a chance.

2. Current motorcycle sales continue to be down; 2008 was off 30%–40% from 2007 and 2009 was considerably off compared to 2008. Many dealers reported that March 2010 business was much better than last year, however.

3. Floor traffic is picking up, dealers are holding better margins, and some banks and credit unions are starting to free up money and "buy deeper" (lower credit scores).

4. Most dealers have reduced old inventory and are no longer "warehouses" for the manufacturers.

5. Parts sales and service work are strong, as customers are repairing rather than replacing their units.

Other positive indicators from March 2010 year-to-date compared with 2009 include:

• Overall store gross profit: up 2%
• Overall net operating profit: up 2.5%
• Personnel and administration expenses as a percentage of GP: down
• Percentage of revenue change: up more than 18% for groups reviewed
• New and pre-owned unit gross profit: up for all products except scooters
• Service labor margin: up 9%–10%
• F&I net operating profit $ PVS: up more than 160%

Current Unit Trends
Midsize street motorcycles and models with rebates are selling to today's budget-conscious customers. Sport bike sales remain slow but have picked up somewhat. Financing and insurance have been a problem here. These customers tend to be younger and many have poor credit. Off-road bike sales have been slow, except for a few models with high demand and low availability. Scooter sales have suffered as fuel prices remain relatively low.

ATV sales have been soft for the last few years, but are up from last spring. UTV ("side-by-sides") sales have been doing well. This market has grown due to wholegoods and accessory product expansion and improvements, combined with the need for utility vehicles. Some farmers, for example, are using these as a low-cost alternative to trucks and tractors for certain jobs.

Consumer Trends
Dealers report that today's consumers tend to be more mature with higher incomes and good credit histories, but take longer to close. They may come in four or more times before making a buying decision. Many have completed considerable web research. They know more about the products and what is on sale on dealer websites.

Marketing Trends
Most dealers report that traditional advertising is not producing. They are finding better results from social marketing, working trade/sports shows and community events.

Other Trends and Opportunities
Dealer Internet sales and using eBay to move obsolete inventory have changed dealership business structures. This profit center will only continue to grow. Social marketing through services such as Twitter, Facebook and YouTube has become more significant to powersports businesses. Dealers must become more creative and Internet-savvy to keep pace with the market.

Due to the reduction in the size of the dealer network, there is a huge opportunity for profitable growth as the economy slowly turns around. Product shortages and reduced competition mean dealers can hold better margins.

There are positive signs that the powersports business is improving. In order to survive the ups and downs of this market, controlling inventory and expenses must remain a priority. Dealers must also pursue a customer-satisfaction business philosophy. It is vital to have the right people in place to maximize every customer opportunity. There’s no reason to have "B" and "C" players on staff when "A" players are out there looking for work.

Keep your team sharp by providing ongoing, high-quality training, including the Powersports Dealer Update Workshops held in conjunction with the 2010 SEMA Show, November 1–2, in Las Vegas. Dealer Update Workshops at the 2010 SEMA Show are open to all powersports dealers. Don't miss this exceptional opportunity to receive high-level training from industry experts.

Eight powersports dealer-specific education workshops will cover essential P&A, F&I, sales, service and dealership management topics. Registration also includes two industry keynote speaker lunches and a special state-of-the-industry powersports panel you can't afford to miss.

Register Now!

Advanced registration*: $99 by October 17, 2010
Onsite registration*: $149 after October 17, 2010
*Includes lunch. Does not include required $25 SEMA Show registration fee due October 17, 2010 ($75 after October 17, 2010).

For more information, visit www.SEMAShow.com/PowersportsDealerUpdate.

	Powersports dealers report that side-by-side sales are up due to increased accessory offerings and a consumer need for utility vehicles.

Gart Sutton & Associates (GSA), a leading authority of retail profitability in the powersports industry, recently polled some of its 20-group powersports dealers to get a better picture of what was happening in the powersports industry from the front lines.

Sutton and his team of industry experts will present Powersports Dealer Update Workshops at the 2010 SEMA Show in Las Vegas, November 1–2, at the Renaissance Hotel next to the Las Vegas Convention Center.

GSA's poll revealed the following:

1. Dealer failures have been at a record high level for two years. Since some of these dealers were heavy discounters, this should help surviving dealers in affected regions. Many dealers who were not up on their performance-to-industry benchmarks and didn't respond quickly to reduce expenses relative to revenue never had a chance.

2. Current motorcycle sales continue to be down; 2008 was off 30%–40% from 2007 and 2009 was considerably off compared to 2008. Many dealers reported that March 2010 business was much better than last year, however.

3. Floor traffic is picking up, dealers are holding better margins, and some banks and credit unions are starting to free up money and "buy deeper" (lower credit scores).

4. Most dealers have reduced old inventory and are no longer "warehouses" for the manufacturers.

5. Parts sales and service work are strong, as customers are repairing rather than replacing their units.

Other positive indicators from March 2010 year-to-date compared with 2009 include:

• Overall store gross profit: up 2%
• Overall net operating profit: up 2.5%
• Personnel and administration expenses as a percentage of GP: down
• Percentage of revenue change: up more than 18% for groups reviewed
• New and pre-owned unit gross profit: up for all products except scooters
• Service labor margin: up 9%–10%
• F&I net operating profit $ PVS: up more than 160%

Current Unit Trends
Midsize street motorcycles and models with rebates are selling to today's budget-conscious customers. Sport bike sales remain slow but have picked up somewhat. Financing and insurance have been a problem here. These customers tend to be younger and many have poor credit. Off-road bike sales have been slow, except for a few models with high demand and low availability. Scooter sales have suffered as fuel prices remain relatively low.

ATV sales have been soft for the last few years, but are up from last spring. UTV ("side-by-sides") sales have been doing well. This market has grown due to wholegoods and accessory product expansion and improvements, combined with the need for utility vehicles. Some farmers, for example, are using these as a low-cost alternative to trucks and tractors for certain jobs.

Consumer Trends
Dealers report that today's consumers tend to be more mature with higher incomes and good credit histories, but take longer to close. They may come in four or more times before making a buying decision. Many have completed considerable web research. They know more about the products and what is on sale on dealer websites.

Marketing Trends
Most dealers report that traditional advertising is not producing. They are finding better results from social marketing, working trade/sports shows and community events.

Other Trends and Opportunities
Dealer Internet sales and using eBay to move obsolete inventory have changed dealership business structures. This profit center will only continue to grow. Social marketing through services such as Twitter, Facebook and YouTube has become more significant to powersports businesses. Dealers must become more creative and Internet-savvy to keep pace with the market.

Due to the reduction in the size of the dealer network, there is a huge opportunity for profitable growth as the economy slowly turns around. Product shortages and reduced competition mean dealers can hold better margins.

There are positive signs that the powersports business is improving. In order to survive the ups and downs of this market, controlling inventory and expenses must remain a priority. Dealers must also pursue a customer-satisfaction business philosophy. It is vital to have the right people in place to maximize every customer opportunity. There’s no reason to have "B" and "C" players on staff when "A" players are out there looking for work.

Keep your team sharp by providing ongoing, high-quality training, including the Powersports Dealer Update Workshops held in conjunction with the 2010 SEMA Show, November 1–2, in Las Vegas. Dealer Update Workshops at the 2010 SEMA Show are open to all powersports dealers. Don't miss this exceptional opportunity to receive high-level training from industry experts.

Eight powersports dealer-specific education workshops will cover essential P&A, F&I, sales, service and dealership management topics. Registration also includes two industry keynote speaker lunches and a special state-of-the-industry powersports panel you can't afford to miss.

Register Now!

Advanced registration*: $99 by October 17, 2010
Onsite registration*: $149 after October 17, 2010
*Includes lunch. Does not include required $25 SEMA Show registration fee due October 17, 2010 ($75 after October 17, 2010).

For more information, visit www.SEMAShow.com/PowersportsDealerUpdate.

	Powersports dealers report that side-by-side sales are up due to increased accessory offerings and a consumer need for utility vehicles.

Gart Sutton & Associates (GSA), a leading authority of retail profitability in the powersports industry, recently polled some of its 20-group powersports dealers to get a better picture of what was happening in the powersports industry from the front lines.

Sutton and his team of industry experts will present Powersports Dealer Update Workshops at the 2010 SEMA Show in Las Vegas, November 1–2, at the Renaissance Hotel next to the Las Vegas Convention Center.

GSA's poll revealed the following:

1. Dealer failures have been at a record high level for two years. Since some of these dealers were heavy discounters, this should help surviving dealers in affected regions. Many dealers who were not up on their performance-to-industry benchmarks and didn't respond quickly to reduce expenses relative to revenue never had a chance.

2. Current motorcycle sales continue to be down; 2008 was off 30%–40% from 2007 and 2009 was considerably off compared to 2008. Many dealers reported that March 2010 business was much better than last year, however.

3. Floor traffic is picking up, dealers are holding better margins, and some banks and credit unions are starting to free up money and "buy deeper" (lower credit scores).

4. Most dealers have reduced old inventory and are no longer "warehouses" for the manufacturers.

5. Parts sales and service work are strong, as customers are repairing rather than replacing their units.

Other positive indicators from March 2010 year-to-date compared with 2009 include:

• Overall store gross profit: up 2%
• Overall net operating profit: up 2.5%
• Personnel and administration expenses as a percentage of GP: down
• Percentage of revenue change: up more than 18% for groups reviewed
• New and pre-owned unit gross profit: up for all products except scooters
• Service labor margin: up 9%–10%
• F&I net operating profit $ PVS: up more than 160%

Current Unit Trends
Midsize street motorcycles and models with rebates are selling to today's budget-conscious customers. Sport bike sales remain slow but have picked up somewhat. Financing and insurance have been a problem here. These customers tend to be younger and many have poor credit. Off-road bike sales have been slow, except for a few models with high demand and low availability. Scooter sales have suffered as fuel prices remain relatively low.

ATV sales have been soft for the last few years, but are up from last spring. UTV ("side-by-sides") sales have been doing well. This market has grown due to wholegoods and accessory product expansion and improvements, combined with the need for utility vehicles. Some farmers, for example, are using these as a low-cost alternative to trucks and tractors for certain jobs.

Consumer Trends
Dealers report that today's consumers tend to be more mature with higher incomes and good credit histories, but take longer to close. They may come in four or more times before making a buying decision. Many have completed considerable web research. They know more about the products and what is on sale on dealer websites.

Marketing Trends
Most dealers report that traditional advertising is not producing. They are finding better results from social marketing, working trade/sports shows and community events.

Other Trends and Opportunities
Dealer Internet sales and using eBay to move obsolete inventory have changed dealership business structures. This profit center will only continue to grow. Social marketing through services such as Twitter, Facebook and YouTube has become more significant to powersports businesses. Dealers must become more creative and Internet-savvy to keep pace with the market.

Due to the reduction in the size of the dealer network, there is a huge opportunity for profitable growth as the economy slowly turns around. Product shortages and reduced competition mean dealers can hold better margins.

There are positive signs that the powersports business is improving. In order to survive the ups and downs of this market, controlling inventory and expenses must remain a priority. Dealers must also pursue a customer-satisfaction business philosophy. It is vital to have the right people in place to maximize every customer opportunity. There’s no reason to have "B" and "C" players on staff when "A" players are out there looking for work.

Keep your team sharp by providing ongoing, high-quality training, including the Powersports Dealer Update Workshops held in conjunction with the 2010 SEMA Show, November 1–2, in Las Vegas. Dealer Update Workshops at the 2010 SEMA Show are open to all powersports dealers. Don't miss this exceptional opportunity to receive high-level training from industry experts.

Eight powersports dealer-specific education workshops will cover essential P&A, F&I, sales, service and dealership management topics. Registration also includes two industry keynote speaker lunches and a special state-of-the-industry powersports panel you can't afford to miss.

Register Now!

Advanced registration*: $99 by October 17, 2010
Onsite registration*: $149 after October 17, 2010
*Includes lunch. Does not include required $25 SEMA Show registration fee due October 17, 2010 ($75 after October 17, 2010).

For more information, visit www.SEMAShow.com/PowersportsDealerUpdate.