Action Kawasaki Suzuki Arctic Cat of Mesquite, Texas
3010 Interstate 30
Mesquite, Texas 75150
When he was 14, Steve Newsom got a job sweeping the floor of a powersports dealership. Thirty years later, he owns his own powersports shop, Action Kawasaki Suzuki Arctic Cat of Mesquite, Texas. He opened the store in 1980, starting out carrying just Suzuki products. As its name implies, the dealership has since grown to include Kawasaki and Arctic Cat products. Action sells new and used motorcycles, ATVs and personal watercraft. The dealership, which moved into a new building two years ago, is home to 18 employees.
“Probably the No. 1 concern would be financing for consumers,” Newsom said. “It’s getting harder and harder to get people financed because of credit scores. Probably 90 percent of customers finance and only 10 perecent pay cash. Unlike the automotive business, which has secondary lenders, the powersports business doesn't have any and that's what we really need in this industry.”
The arrival of 2006 models has made for big business at Action. “They’re starting to hit the floor and everybody’s been anticipating them, especially [Suzuki’s] GSX-R600,” Newsom said. “Over the last two months, my biggest market has been sport bikes.” In accessories, jackets of all varieties have been selling well lately, Newsom said.
CUSTOMER BUYING TRENDS
Customers are always looking for updated looks, technology and other add-ons, Newsom said. “Cruisers seem to be growing in popularity, especially those that are already decked out with windshields and such,” Newsom said. “That seems to be a growing market. I think Harley has done a lot for the cruiser market, but people don’t want to pay as much for the Harleys.”
PARTS AND SERVICE
“Parts and accessories is a major portion of our dealership because our P&A sales are growing in leaps and bounds every year,” Newsom said. “And we get a lot of repeat business on our service department.” Action currently employs three full-time service technicians and one part-time technician.
PROMOTIONAL HOME RUNS
Action’s advertising focuses primarily on television and radio, although the dealership also runs some print advertising. Promotions throughout the year help draw people to the dealership, as did bringing in the Suzuki racing team last year. It was successful enough that the dealership will be bringing in the Kawasaki racing team this year. But the store’s biggest event is a yearly open house, which features catered food and drinks. The biggest draw by far at the open house is the stunt show, Newsom said.
WORDS OF ADVICE
“I would say, put a big emphasis on accounting and make sure they have a good controller, that way they’re able to effectively run their business and know where they’re at at all times,” Newsom said.
Copyright 2006 Powersports Business