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The powersports industry continues to debate the impact of online retail on dealership performance. While e-commerce has changed customer behavior, the most successful dealers are proving that brick and mortar is far from obsolete.
In a recent throwback episode of The Dealership Fixit Podcast, Craig Martin shared insights from decades in the industry as a dealership owner, race team manager, track operator and distributor representative with Western Power Sports.
Strategic Service
Martin’s perspective is grounded in execution, not theory.
One of the most common mistakes he sees today is how dealers handle customers who purchase parts online. Charging higher installation fees for internet-sourced items often creates friction and damages long-term loyalty. Customers perceive the policy as a penalty rather than a value exchange.
Martin implemented a different strategy. Standard installation pricing remained consistent, but customers who purchased parts directly from the dealership received a discounted install rate. This reframed the value proposition and drove more in-store purchasing without sacrificing margin.
Service menu pricing was another area of focus. Rather than discussing hourly labor rates, Martin advocated for menu-based pricing that clearly outlines outcomes and value. Customers respond better when they understand what they are buying instead of how long it takes.
Targeting Inventory and Compensation
Used inventory management also played a major role in Martin’s success. At his KTM and Husqvarna dealership, he averaged nearly 300 unit sales annually, split evenly between new and used. Used motorcycles were treated as a core profit center, not a secondary concern.
Trades were acquired strategically (using tools like Motohunt), reconditioned intentionally and displayed prominently. Recon investments, such as fresh tires, basic mechanical refreshes and detailing, significantly increased perceived value and margin. Used units were positioned where every customer had to see them.
Martin also emphasized the importance of incentive-based compensation. Parts and service departments often operate on hourly pay structures that fail to reward initiative. Commission and bonus programs aligned employee behavior with dealership goals and improved customer engagement.
The Key Takeaway
The broader takeaway is clear. Dealers who succeed in today’s market focus on experience, process and people. Stocking relevant inventory, respecting the customer’s effort to visit the store and building systems that reward performance all contribute to sustainable profitability.
The internet has raised customer expectations, but it has not replaced the need for knowledgeable staff, trusted service and local relationships. Dealers who adapt their operations accordingly continue to win.