As the golf car industry reduces its dependence on golf car fleet sales, and shifts to personal transportation vehicles, dealer networks become increasingly more important. In fact, the network of dealers becomes the centerpiece of strategies for growing sales and increasing market share. While fleet sales are still the largest component of unit sales, total segment revenues favor heavily personal transportation vehicles (PTVs).
In this article, I attempt to characterize a typical dealer, the skill that he or she has, and the skills that probably need broadening. This is all based on a recent market research undertaken by Small Vehicle Resource, LLC.
A Typical Golf Car-Type Vehicle Dealer
First, you could ask, is there really a “typical” golf car dealer? And, it’s a good question because all cater to a somewhat different market, defined by geography and climate, as well as customer base and product mix. In addition, there may be somewhat different skills available at the dealership and there are differences in market strategy.
Despite these differences there are similarities across most dealerships and most brands:
- Many, probably most dealerships are family-owned, and many are operated by second or third generation family members;
- Most dealers understand the mechanics and details of electric drive systems;
- A significant portion of their business, in terms of revenues and profits, lies in parts and service;
- Many dealers have developed close customer relationships and do business with their customers on a multi-point, multi-event basis, from sales to repairs and service;
- Finally, most cater to the walk-in customer, although that is changing.
All these attributes are important for sustained sales growth in the PTV and utility vehicle market and could form the basis for significant new business in urban/suburban mobility.
The “Long-Tailed” Market for PTVs
In 2006, a book, authored by Chris Anderson, entitled, The Long-Tail: Why the Future of Business is Selling less of More, was published, which capsulated the growing trend not only in electronics, but in many other markets, as well. In case you don’t know who Chris Anderson is, he is the publisher of Wired Magazine, which has consistently documented cutting edge products and technologies, and new applications for, now, a good number of years.
The idea of selling less of more simply means smaller volumes of more, diverse products. The huge benefit of this sort of product diversity—which consumers, on the whole, prize—is that product diversity invariably results in better margins. Why, because the diversity aspect appeals to a small group of consumers who are willing to pay significantly more for a particular aspect of a product. Now multiply the small group many times over, each group buying at a higher price for the particular product aspect that appeals to them.
Clearly, PTVs are part of a long-tailed market. And, manufacturers and dealers have exploited the appeal of diversity via their on-line accessorizing features. Some of these features are factory-installed and some installed at the dealership. For this reason, overall revenues of PTVs have out-gained those derived from fleet sales—and this trend will only become more definitive as time goes on.
(The full details of the PTV market can be accessed via a subscription to Small Vehicle Resource’s latest market study. Contact me a t smetzger@smallvehicleresource.com.)
The question now is can this personalized PTV market morph into broader markets and greater opportunities?
“Outliers” Who Are Pushing into New Markets
Two dealers that have pushed the envelop to create new markets are Brian Rott, CEO of Cart Mart, Inc., headquartered in San Marcos, CA, and John Triolo, who heads up MountainTop Golf Cars in Banner Elk, NC.
Brian is one of the most successful dealers in the country. He is an authorized dealer for Club Car, Yamaha, and Garia and has expanded his business from the company’s original location in San Marcos to now three more dealerships across California’s Southland, including Los Angeles. Diversification is probably the most succinct way of summarizing the key to Brian’s vision and the success of that vision. Sales and revenues are balanced between consumer and commercial accounts, rentals, and a proactive service organization. The commercial side of the business has grown to the point that Brian now has three full-time outside sales associates in his employ.
Perhaps the most innovative initiative that Brian has undertaken is lobbying for legislation to get communities to consider low-speed vehicles as a clean, safe, and convenient alternative to conventional automobiles. Based on this legislation, which has now passed the California legislature, municipalities in San Diego County are encouraged to consider infrastructure adjustments to provide for LSVs. This legislation could be the model for other counties in California—and, who knows, perhaps for the entire country.
John Triolo, owner and CEO of MountainTop Golf Cars, insomething of a contrast to Brian, is located in the western hill country of North Carolina, an area, by comparison to Southern California, is sparsely populated. And the business in this beautiful resort location is highly seasonal. Jack, as he is known to his many friends and business partners, is an authorized E-Z-GO, Club Car, and STAR dealer. To broaden his market, Jack, looked into the potential of the global market. To this end, he and his son-in-law, Mike Williams, have successfully developed a fleet of custom electric transporters for major resorts in the Seychelle Islands.
Built on a Club Car frame and incorporating a powerful AC motor and controller from Hi Performance Electric Vehicle Systems (HPEVS), Ontario, CA, Jack put together a vehicle that could manage the steep climbs from the tourist debarking dock at the shore to the high, inland resort locations.
Lessons Learned/Objectives to be Accomplished
The whole point of citing these examples is that it is the dealer, not the manufacturer that has taken the initiative to increase their business. These dealers, and others could be mentioned, will provide the groundswell that could bring the industry into the 21st century electric mobility revolution. Two key aspects of industry participation in this green mobility process are:
- Meeting performance requirements (e.g., power, distance) of the new era;
- Garnering the cooperation of municipal authorities, whose interest is optimizing traffic patterns in a green environment.
In my estimation, the first requirement has been all but met. Peruse the HPEVS website and SilverWolf’s (Canada), and you will be convinced of this. As to the second, much work needs to be done. Following Brian Rott’s example, however, and with support from key manufacturers, this can also be accomplished.
Actually, it is the manufacturers that need to be more involved in the second endeavor. Traditionally, they have been reluctant to push the LSV, on-road concept because of liability concerns. By involving municipalities, however, in a “safe-road” planning process, these concerns would be greatly mitigated.
