PowerSports Business

March 13, 2017

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FOCUS PSB UTV-Utility 16 • March 13, 2017 • Powersports Business www.PowersportsBusiness.com enthusiasts are keeping their ATVs and simply adding side-by-sides to their garages. "It's really clear to us that, while there's migration from somebody buying an ATV to somebody buying a side-by-side, that same customer is using it for a similar thing. But now they might be adding a side-by-side, when they want to be in that social environment, but keeping that ATV for when they do want to just be doing their own thing and don't want any- body else around. Not everybody's abandoning ATVs to go to side-by-sides," he reported. Utility side-by-sides are also being sold to commercial customers that in the past used light pickup trucks or tractors to complete the same jobs. Though most utility and multi-pur- pose side-by-sides are in the five-digit range, prices often pale in comparison to that of a truck or farm equipment, plus side-by-sides are usually more capable off-road, bringing new customers into powersports dealerships. "I think the migration is where we're at, especially farmers. They understand that it's much more versatile to have a side-by-side," Dubois said. ACCESSORIZATION Of course, with so many different uses for side-by-sides, accessorization is key. Each customer can make his or her side-by-side customized to his or her needs by bolting on even a few accessories. The average new multi-purpose UTV was sold with $946 in accessories in 2016, accord- ing to CDK Global Recreation data on Page 19. Work side-by-sides went out the door with an average of $695 in accessories. "There's penetration rates on some items that are truly astounding. Windshields, roofs, winches, mirrors — most of them leave the dealerships with them. If not, it's a week later that customers have those," reported Ryan Andreae, director of Product & Customer Experience for Kolpin. Jason Baldwin, brand manager of QuadBoss said, "I know when the units are getting pur- chased, we're doing a good amount of acces- sories. It usually starts with a top and winches." QuadBoss has also seen an uptick in tire sales, and with new tires often come new wheels. "Tires and wheels are big for us right now," Baldwin said. "They're going bigger. Three years ago, a 27-inch tire was a big tire. … Now we're manufacturing up to 34 inches." Kolpin focuses mostly on hunting acces- sories, gun storage and snowplows, along with the basics like windshields, roofs, mirrors and winches. Recent bestsellers of Kolpin's are Rhino Grip Pros, which hold anything from firearms to crossbows to rakes or shovels to a side-by-side. "We've had a lot of inquiries from people that are working with their product. They put their lawn mowers in the UTV, and they hang their Weed Eaters on them and rakes, shovels and anything else they use for their business," Andreae said. For hobby farmers, Kolpin has seen popu- larity with its Dirtworks Implement system, which adds a rear blade, cultivator set, land- scape rake, disc plow or chisel plow/scarifier to the rear of a side-by-side. And in places like Minnesota, ice fishing products, like the Stronghold Ice Auger Boot and the Stronghold Ice Rod Boot, have moved well. Of course, as people use their side-by-sides, especially for hard work, replacement parts are also important for sales. "A lot of our core business is the repair and the replacement parts," Baldwin said. "These machines are lasting 10-plus years, so it's a good market for us to be in." It doesn't take more than a few years for some well-used units to need axels and bear- ings, Baldwin said, so repair and replacement parts often bring already-sold customers back into dealerships. UTILITY SIDE-BY-SIDE FUTURE Though side-by-sides sales are not growing at the rapid rate they once were, Wells Fargo estimates still project growth through 2017, with 483,474 unit sales projected worldwide this year. Gerrick Johnson, equity research analyst for the Consumer Group at BMO Capital Markets who puts together the quarterly survey that See Utility UTV, Page 17 UTILITY UTV CONTINUED FROM PAGE 14 Utility side-by-sides, like the Honda Pioneer, have become popular work vehicles on farms, ranches, personal property and other areas where they can help complete tasks.

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