The dealer playbook for an uncertain economy

By Melissa Coffey

This article first appeared in the September issue of Powersports Business.

The powersports industry has weathered plenty of cycles — from boom years where inventory flew off the floor to lean seasons where every sale felt like a dogfight. We’re entering one of those more challenging stretches now.

Pricing across most segments is softening, inventory turns are slowing, and consumers are taking longer to pull the trigger on big-ticket purchases. At the same time, there’s a silver lining: brand loyalty in U.S. powersports has rebounded to its highest level since before the pandemic, topping 57% in early 2024. Riders are still passionate about the brands they love — they’re just being more careful with their wallets.

For dealers, that means opportunity is still there, but it requires sharper execution, a stronger value proposition, and a tighter focus on the long game. Here’s your playbook for thriving in an uncertain economy.

Shift from transactional sales to lifetime value

When money’s tight, discounting your way to volume is a fast road to eroding margins and brand perception. Instead, focus on customer lifetime value (CLV) — the total revenue you can generate from each rider over the years they’re in your ecosystem.

That starts with:

• Post-sale engagement: Make the first service appointment before the customer leaves the showroom.
• Accessory bundling: Package helmets, riding gear, and tech upgrades with financing.
• Events and community building: Group rides, track days, or demo weekends that deepen loyalty and keep customers coming back.

A customer who buys one machine and nothing else is a missed opportunity. A customer who buys multiple units, outfits them with accessories, gets them serviced in-house, and brings friends to events is the one who keeps your lights on in a slow quarter.

• To diversify revenue streams beyond unit sales in a slower market, your profit centers have to pull more weight. Service, parts, apparel, storage, and rentals all play a role in keeping revenue steady.
• Service: Invest in tech training to keep labor hours in-house. Proactively reach out to customers for seasonal maintenance.
• Parts and accessories: Use your CRM to target accessory promotions by vehicle type and purchase history.
• Rentals and experiences: For some customers, trying before buying is the push they need — and rentals bring in off-season revenue.

Dealers who treat P&A and service as afterthoughts are leaving significant profit untapped.

Use loyalty as a competitive weapon

The rebound in brand loyalty is a signal you can leverage — especially against non-OEM competitors and big-box disruptors.

• Highlight OEM exclusivity in marketing. Make it clear why buying from an authorized dealer means better service, warranty, and resale value.
• Create VIP programs: Points systems, early-access sales, or free seasonal check-ups for repeat customers.
• Follow up personally: Handwritten notes, anniversary calls (“One year since your ride — ready for an upgrade?”) and targeted offers based on past purchases. Loyalty is fragile in tough times — protect it fiercely.

Strengthen financing partnerships

In 2025’s environment, finance often makes or breaks a deal. Work closely with OEM finance programs, local banks, and credit unions to offer competitive rates and flexible terms.

• Pre-approve buyers before they step onto the sales floor.
• Offer creative packages that combine units, accessories, and service into one payment.
• Promote low-interest or deferred-payment offers heavily in your digital ads and showroom signage.

A buyer who thinks they can’t afford a new machine may say yes when you present the right finance solution.

Double down on digital targeting

In a cautious market, you can’t afford to spray-and-pray with your marketing budget. Use the data you already have to target high-value prospects.

• Segment email campaigns by riding style (off-road, touring, sport, PWC, snow).
• Retarget website visitors with ads that match the unit they viewed.
• Use social media to showcase lifestyle and community — not just inventory photos.

Digital targeting doesn’t replace grassroots efforts — it amplifies them by making sure every dollar you spend is aimed at the right riders.

Train for the times

Your team is your frontline defense in a slow economy. Salespeople, service advisers, and managers all need to sharpen skills in the following:

• Objection handling without resorting to deep discounts.
• Presenting finance options confidently.
• Selling accessories and service as part of the ownership experience.

Run role-plays, set measurable goals, and make training part of the culture — not a one-time event.

The Bottom Line

An uncertain economy doesn’t have to mean a shrinking dealership. The dealers who come out ahead will be the ones who focus on CLV, maximize every profit center, lean into loyalty, partner with finance to remove barriers to purchase, and get sharper and more targeted in their marketing.

We may not be in a boom cycle right now, but history shows the dealers who adapt in down markets gain market share, build stronger relationships, and set themselves up for exponential growth when the economy rebounds. Till next time, shiny side up and checkered flags.   

Melissa Coffey is a two-time Powersports Business “Women With Spark” award winner and a powersports and motorsports industry veteran with over 25 years of experience in sales and marketing leadership. She currently serves as a full-time executive recruiter with Action Recruiting and oversees her consulting firm Catch, where her team provides sales and marketing support to companies in the powersports industry.