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OPINION FROM THE EDITOR www.PowersportsBusiness.com Powersports Business • May 1, 2017 • 11 Thanks to the 127 deal- ers from 38 states and five Canadian provinces who participated, we wrapped the Q1 Powersports Business/ BMO Capital Markets Dealer Survey just before this issue went to press. We'll get into further detail about the survey results in the next edition, but it's worth noting that 46 percent of dealers replied that their Q1 2017 business perfor- mance was below plan (compared to 41 percent in both Q4 2016, and Q1 2016). In addition, 40 percent of dealers reported that they were on plan for Q1 2017 (compared to 36 per- cent in Q4 2016, and 38 percent in Q1 2016). Finally, a total of 14 percent of dealers said that they were above plan for Q1 2017. That number was 22 percent in the same quarter a year ago, and it was as high as 23 percent in Q4 2016. Overall business conditions for Q1 were reported as strong or very good by 46 percent of respon- dents. Average business conditions were reported by 35 percent of dealers, and 20 percent of dealers reported either poor or very weak conditions. A total of 42 percent of dealers reported good conditions, up from 35 percent in Q4 2016 and up from 28 per- cent in Q3 2016. New unit sales, meanwhile, remained on the down side of flat compared to Q4 2016, with 36 percent of dealers reporting either very strong or good unit sales, compared to 37 percent in Q4 2016. For the third quarter in a row, 32 percent of dealers reported aver- age new unit sales. And an additional 32 percent called new unit sales either poor or very weak, up from 31 percent in Q4 2016. You can read about the inventory overstock at snowmobile dealerships on Page 30 of this edition, but it's worth noting that 63 percent of dealers character- ize their overall new unit inventory as about right, with the other 37 percent saying it's "too high." There were a total of 0 dealers who said their overall inven- tory level was too low. Using the data points we often turn to gauge the retail marketplace, it all adds up to a generally poor start to the year in Q1. CDK Lightspeed Same Store Sales data showed overall gains of 0.5 percent in Jan- uary and 1.2 percent in February, followed, as you can see on Page 8, by a dramatic 5.5 percent decline in March. It's the largest year-over-year decline in a month since an 11.3 percent drop off in March 2013 vs. March 2012. March 2017 also was the worst showing for major units since an 11.4 percent decline in March 2013. It's the sixth time in the past 24 months that all four of the Lightspeed data points (parts, service, major units and overall) have overall pointed downward. Suffice to say, the upcoming key months of sales leading into and during the riding season will be awfully important to many dealers. KEY PRODUCTS TO CONSIDER With the idea that a rising tide lifts all of us industry ships, we're always trying to find ways to unearth products that can help dealers grow their bottom line. We've done it for 18 consecutive years with the Nifty 50, which recognizes the top products to con- sider adding to your lineup in 2017. Big Bike Parts and Great Day, Inc., are two of the latest companies to recognize the people behind their innovative products. Haven't seen your win- ning photo here yet? Send me a pic to join Barnett Clutches and Cables and National Cycle right here on these pages next month. PSB Dave McMahon is editor in chief of Powersports Business. Contact him at 763/383-4411 or dmcmahon@powersportsbusiness.com. 1. Polaris issues 2017 Slingshot recall 2. Textron completes Arctic Cat acquisition, looks ahead 3. Honda releases 2018 motorcycles 4. Textron rebrands ORV line 5. Indian Motorcycle releases 2017 Chieftain Limited, Elite models 6. Honda launches 2017 Honda Rebel collaboration at SXSW 7. Polaris issues Sportsman recall due to fire hazard 8. Harley-Davidson dealership changes its tune 9. Indian Motorcycle unveils Project Chieftain winner 10. Report: Supercross racer fined $5,000 for violation 11. Report: Polaris paid $132M in recall-related warranty costs in 2016 12. Ex-Polaris director joins design firm 13. Slingshot license change in Wyoming, Colorado 14. KTM unveils 2-stroke fuel injection Enduro machine 15. CFPB issues $3M fine to auto F&I firm The headlines above belong to the most frequently viewed articles from Powersports Business' three-times weekly e-news during the March 16-April 10 period. The number is based on the percentage of e-news viewers who clicked on the article's headline. To subscribe to e-news, go to www.bit.ly/PSBEnewsSignup. WHAT'S THE HOTTEST INDUSTRY TOPIC? Powersports Business blog ONLINE WITH POWERSPORTSBUSINESS.COM Leading industry executives and dealer consultants are among the contributors to PSB's blog. See below for recent blogs. Visit powersportsbusiness.com/blogs LinkedIn group reaches 5,100 The Powersports Business LinkedIn group has officially surpassed 5,100 members! The group was created for powersports industry professionals by Powersports Business to share in the discussion of powersports industry news and developments and to encourage the exploration of solutions and best practices to drive industry success. In addition to news and lively industry conversation, members are notified when new blogs are posted from our Powersports Business bloggers three times a week. Join the group at www.linkedin.com/groups/2908806. TIM CALHOUN President, SpeedMob Inc. Be honest, open and lead with the truth. Make your handshake mean something and do your best to fulfill any promises made. Be honorable even when no one is looking. I wish you luck in pursing your dream. LIZ KEENER Senior Editor, Powersports Business Your customers expect instant response. But when they do call to talk to a real human being, they can't be put on hold for long. In a 2012 study of 2,500 consumers, nearly 60 per- cent reported that they didn't want to wait on hold for longer than a minute. LAUREN MCLEAN Public Relations Manager, Dealer Spike Positive SEO results are essential to the success of your dealership's web- site — gaining high positions in search engine rankings ensures that potential customers who fit your target audience can actually find you. NAPOLEON TETREAULT Sales Representative, Tucker Rocky New customers are the lifeblood of your business. Are you pulling new customers into your store? Is it easy for them to find you? Do you have a pres- ence on social media? Can they tour your store on Google Earth? Thanks to the 127 deal- DAVE McMAHON WHAT THEY'RE SAYING... ON TIM CALHOUN'S BLOG POST, VIA LINKEDIN This is the best one-page summary on entrepreneurship I've read. Best tip: "Find ways to inspire, support, incentivize and promote those in your organization ..." ON THE TEXTRON COMPLETES ARCTIC CAT ACQUISITION, LOOKS AHEAD STORY I hope Textron guys ride snowmobiles!!! We will rule if they do. ON JACKSON SMITH'S BLOG So many great points in this article: respect for people, focus on the front line staff, deep consideration of the effects on the organi- zation as a whole, collaborative problem solving. ... Looking forward to reading more! (From left) Georg LaBonte, vice president, and Chuck Thrasher, design engineer, with the Nifty 50-winning Fuse Block product from Big Bike Parts. Great Day Inc.'s Powerloader for ATV/UTV was a 2017 Nifty 50 winner, represented by (from left) Rick Sumners, operations manager; Ilar Paul Meeks, VP of sales; and Michael Mobley, pro- duction supervisor. Surveyed dealers report soft Q1 vs. their business plan