Jan. 19, 2009 – PG&A sales mostly stable, poll finds

By Karin Gelschus
Associate Editor
Mixed factors, including the troubling economy and fresh snow in many areas of the country, have dealers divided on how well their snowmobile PG&A sales are faring this season.
A Powersports Business online poll revealed that range of results for PG&A sales. The largest percentage, about 29 percent, said sales were flat. The lowest percent of respondents, 11 percent, said sales were slightly down. The respondents who said sales were significantly up, slightly up and slightly down were also spread substantially.
Falling into the significantly up category is McKinley Polaris in Healy, Alaska. It’s having an exceptional year. The dealership as a whole is up this year, and the parts department is one reason why. Sales Manager Nick Evans says the PG&A department is up about 15 percent. Even though the numbers are up in the segment, Evans says they slowed down right before the holidays.
He adds there isn’t any one popular product for the dealership.
“The typical snowmobile PG&A products have all been selling well,” he said.
Also having a good start to the snowmobile season is Forest Lake Motor Sports in Forest Lake, Minn. Vice President Blake Dalbec says the holidays helped sales, but there was another significant factor in why the dealership’s snowmobile PG&A sales are up.
“The biggest thing is I bought a bunch of close-out clothing from Polaris,” he said. “I think with that it’s stepped up. (PG&A sales) are doing pretty good this year. As far as our regular stuff, it’s probably right on from last year.”
Among the clothing, Dalbec says they have been selling a lot of jackets. They also have been selling quite a few helmets.
Part of the reason the dealership’s sales are up, Dalbec says, is because Forest Lake Motor Sports has been running some bigger sales than they normally do.
Also running larger sales is Mark’s Outdoor Sport in Alamosa, Colo. Co-owner Nancy Gilleland says business has picked up considerably lately, including their PG&A sales, which are up from last year.
“We were looking over stuff this morning,” she said, “and it’s a lot more empty than it was at this time last year.”
Unlike the other dealerships, Land Air in Essex Junction, Vt., has experienced decreased PG&A sales. Luke Kirby, salesman, says they’re down about 12 percent from last year.
“We’ve been doing pretty well so far,” he said. “It’s still been down, but I think on average most dealers are right now.”
One item helping the dealership’s PG&A sales is snowmobile pads. Kirby says those have been going the quickest.
Record snowfalls
December brought record snowfalls in some states, kicking off the riding season.
One of the areas with a substantial amount of snow was Green Bay, Wis. It had 45.6 inches compared to the previous record of 36.4 inches, according to the Green Bay Press-Gazette. Nearly all the Midwest has seen at least 10-25 inches of snowfall, reported the National Weather Service. Parts of northern Minnesota and Michigan have received even more snow, from 20-39 inches.
The Northeast is no different than the Midwest. The snowfall ranges from 5-39 inches. The most snowfall is in northern Maine. New York is on the lighter side, but the entire state is covered.
Out West is where the most snow has fallen. Parts of Washington, northern California, Idaho and Wyoming have received 39-59 inches. Other areas received 20-39 inches.
Among the regions with significant snowfall is Telluride, Colo., stated the Telluride Daily Planet. It broke its record with 100-plus inches of snow compared to the previous record of 93 inches.
Also breaking records is Great Falls, Mont. It has received 28.9 inches of snow this December compared to the previous record of 25 inches set in 1945, according to the National Weather Service.
Decreased retail sales
Despite the snow, the recession has many consumers hanging onto most of their discretionary income, making sales difficult for dealers as well as companies outside the powersports industry.
Spending by consumers fell 0.6 percent in November, according to a Commerce Department report. It was the fifth consecutive month it decreased.
Online sales aren’t any more positive. For the first time since recording in 2001, online holiday sales decreased, according to ComScore, a sales tracker. The company said online spending for the first 49 days between November-December fell 1 percent to $24.03 billion compared to $24.15 billion over the same period last year.
The National Retail Federation estimated total holiday sales will grow 2.2 percent. That’s the smallest increase in six years.