So, what are you expecting in the future in the world of Powersports?
Powersports can be understood as a subset of motorsports that encompass motorcycles, snowmobiles, ATVs, and even personal watercraft. Let’s understand this from the motorcycle thing, and this is because they are very near to electrification now. Of course, there are electric ATVs, PWC, and even snowmobiles. But the primary thing that you need to consider here is, electric motorcycles are comparatively more established.
Powersports And Electric Motorcycles
There are three main aspects of the Powersports business when it comes to electric motorcycles. In this retail business, the number one aspect is margins, and the second being upsells and accessories. Finally, the last element that you need to consider here is maintenance and repair.
There are many things that you need to understand about dealership when it comes to electric motorcycles. Until new models are established, of course, you need to expect natural progression in the displacement of brick-and-mortar level.
Implementation Of Margins
It is the first thing that you should discuss when it comes to the product line. When we are thinking from an electric motorcycle point of view, electrical vehicle OEM’s dealers always expect the margin to thrive. The best part is OEMs always provide the best incentives but with the highest cost.
For offering the best and higher margins, the cost of goods should always go down. When there is a reduction in maintenance, electric OEMs remove another highly profitable revenue stream from the hands of the dealers.
So, now the question is, an additional margin achieved from the sale of the product leads to the reduction of maintenance revenue?
The answer is no, but meantime, this is not a cynical move. But one thing was clear that OEMs understood the needs of incentivizing all the parties present in this equation. When they grow as an industry, power batteries and COGS of the cells will go down, and hence dealers can always be ready with opened doors.
Apart from all these, when the vehicle moves towards and gets completely digital, there are many opportunities that open up in terms of accessories. Of course, there is one fundamental thing that is a safety gear. But, when there is growth in the industry, you can be offered new types of safety gears as well. So, these new types of apparatus may become highly prominent in the future.
Along with this, you can also think of other accessories like helmets. For example, you can sell a mask that belongs to the category of smart helmets and which comes with HUDs that can easily integrate with an electric motorcycle. It may also come with 360 views right on that visor.
Powersports: Bottom Line
So, there are a lot of new opportunities. You can also imagine selling smart boots for riding that even pair with the electric motorcycle. Whenever you take turns, these boots may light up. These are the margins that you need to think about, and there are a lot of other things that you should consider about electric motorcycle Powersports.