Dealers report strong 2015 in service

Motorcycle dealers especially strong in Q4 

Service was a positive department for many dealers throughout 2015. Most dealers reported their service department was average, somewhat strong, or very strong in each quarter of the year.

In the most recent quarter, Q4 2015, 40 percent of dealers participating in the Powersports Business/RBC Capital survey reported their service departments were somewhat or very strong. Another 37 percent reported their service departments were average for the three-month period running October through December.

Q4 by Segment

Dealers who carry side-by-sides, ATVs, snowmobiles, motorcycles and PWC all saw average or somewhat/very strong fourth quarters in their service departments. (Dealers in this area may be counted more than once if they carry more than one type of vehicle.)

The largest percentage of dealers (40 percent) reporting somewhat or very strong service departments came in the motorcycle segment. Another 36 percent of dealers were average for the quarter.

Side-by-side and ATV dealers reported similar numbers as each other, which isn’t surprising, since most dealers in one category sell the other as well. Thirty-six percent of side-by-side dealers were somewhat or very strong in service in Q4, while 39 were average. Thirty-five percent of ATV dealers were somewhat or very strong, and 40 percent were average.

Snowmobile dealers were mostly average, with 48 percent giving their service department that ranking in the fourth quarter. Another 34 percent were somewhat or very strong, while only 18 percent were somewhat or very weak in the service department.

Twenty-nine percent of marine (PWC) dealers who took the survey were somewhat or very strong in service during the quarter, while 44 were average.

Full year 2015

During Q3 2015, 46 percent of dealers had somewhat or very strong service departments, and 37 were average. In Q2, nearly half — 49 percent — of dealers polled said their service departments were somewhat or very strong, while 37 percent rated the department average. That quarter no one reported a very weak service department.

Q1 2015 was the least successful quarter of the year for the service department. During the first three months of the year, only 29 percent of dealers reported having somewhat or very strong service departments, while 44 were average, and 27 had somewhat or very weak departments.

Q4 2015 almost mirrored Q4 2014, except 2 percent of dealers moved from somewhat or very strong to average in Q4 2015. During the prior year’s fourth quarter, 42 percent of dealers reported somewhat or very strong departments, while 35 percent were average. Twenty-three percent were somewhat or very weak in Q4 of 2014 and 2015.