Not Much 2017 Holiday Season Cheer for Snowmobile Dealers Despite a strong economy and a good holiday shopping season for many retail sectors, 23% of snowmobile dealers said their Q4 2017 sales decreased 10–19%, compared to Q4 2016, and 30% experienced a sales decrease of 20% or more. Lack of snow was just one of many factors dealers cited for poor sales and many had one of the worst quarters for service work, which is where many dealers generate much if not most of their profits. 50% of Arctic Cat dealers either had increased or decreased sales while 75% of Polaris dealers also had decreased sales. 66% of Ski-Doo dealers reported flat to as much as a 20% increase, but 62% of Yamaha dealers had flat to as much as a 20% decrease.

Q1 2018’s Winter Weather Improved Sales It was as if someone flip a switch, as the pessimism during Q4 2017 turned to optimism during Q1 2018, with 54% of dealers reporting a sales increase and 11% experiencing a double-digit increase. Of the dealers (snowmobiles, motorcycles, ATVs, etc.) responding to the Powersports Business/BMO Capital Markets survey, 76% said business conditions were average to very strong, compared to 72% during Q4 2017 and 81% during Q1 2017. Although PWCs (powered watercraft) and side-by- sides had a much better quarter than ATVs, motorcycles and snowmobiles, Ski-Doo product sales did well.

Smooth Sledding During the 2017–2018 Selling Season Sales increased in all the major markets during the 2018 selling season (May 1, 2017–April 31, 2018), with worldwide sales increasing 5.2%, Canadian sales increasing 6.5% and US sales increasing 5.0%. Total worldwide unit sales were 124,786; Canada, 47,024, and US, 53,179. Finland was third, by country, with total unit sales of 3,672, a 19.6% increase. Regionally in the US, not surprisingly, 42% of all sales were in the Midwest, with the Northeast and West, at 29% each.

2018-19 Winter Weather Anxieties According to The Farmers’ Almanac, the US east of the Continental Divide will experience a “colder-than- normal” winter, which is good news for snowmobile enthusiasts and the industry. The US National Oceanic and Atmospheric Administration (NOAA) doesn’t quite agree, with a 40% to 50% probability of above-average temperatures in the Northeast, the northern tier of the country and Alaska. NOAA’s precipitation forecast is 33% to 40% below normal in the northern Mountain states and normal across the Mountain, Plains, Great Lakes, Ohio Valley and Northeast states.

Snowmobilers Riding More During 2018 Season The average age of a snowmobiler has increased by a year from 2017, to 45 years of age. The average ride also increased from 2017’s 1,175 miles to 1,250 for 2018. Just slightly more than half (51%) of snowmobilers keep their snowmobile at their primary residence or a vacation home, which is often the starting point for trips. Although most snowmobiling are day trips, more enthusiasts are taking overnight and/or multi-day trips of 100 to 150 miles per day, enjoying the camaraderie, scenery and opportunities for shopping and dining at new destinations.

Advertising Strategies Many younger adults first become snowmobilers by buying a used machine, which provides dealers with an opportunity to provide a voucher/coupon good for the purchase of a new machine and/or offer a service special during and/or after the first year of use. Service is where most dealers generate the majority of their profits, so a pre-season service special during Q4, and even into Q1, is likely to increase foot traffic. It’s also an opportunity to cross-sell accessories aggressively. It’s to the advantage and benefit of local dealers and snowmobile clubs to forge strong, cooperative partnerships, which provide dealers with an excellent public-relations component to their marketing and provide clubs with support and help.

New Media Strategies Invite customers and/or local club members to post videos on social media about their overnight/multi-day trips: why they enjoy them compared to a day trip, what they discovered, etc. Dealerships that forge a partnership with a local club should record and post videos of cooperative projects, including trail clearing work, restoration of signs, promoting fundraising events, etc. “Influencer marketing” is almost a perfect opportunity for a powersports and/or snowmobile dealer to designate a customer, club member or well-known enthusiast to post content on the dealer’s Website and/or social media about his or her snowmobile adventures, etc.