While inflation has eased, prices in many cases haven’t gotten any lower. Inflation peaked in mid-2022, falling since then from 9% to 2.4% in September. And even though wages have kept pace, people are trying to figure out how to manage a higher monthly budget.
At Up North Power & Sports in Park Rapids, Minn., sales are up on a unit basis, but profits are down, said general manager Nick Mills. The dealership is having to offer higher incentives, though, to clear out its high inventory levels amid low demand.
”You’re having to work twice as hard to sell what you’ve had over the past few years,” Mills said.
Justin Ogg, general manager at Chopper Powersports in Fridley, also said customers are looking at price. Margins are slimmer because the market “will dictate the value of what things are.”
”Nobody needs anything that’s coming through our door,” Ogg said. “They’re here because they want to be here, so we try to match their enthusiasm with our enthusiasm and passion.”
Polaris, which has already taken steps to lower inventories, lost some market share over the summer to competitors willing to take steep price cuts. Now, it must continue to make operational adjustments as the market rights itself.
