Dealer LAB: Gains in May push YTD earnings up 59 percent

Publish Date: 
Jul 25, 2013
By Joe Delmont

DESTINATION POWERSPORTS, the Dealer LAB powersports dealership in Punta Gorda, Fla., continued its strong earnings performance this year with another solid month in May.

Earnings for the month were $21,876, up $7,876 (or 56 percent) over the same month last year.

Just as important as the operation’s strong performance, however, is a move to a new site being eyed by owner Bill Shenk and his partner. The city approved a site use plan for the new property, and a closing is likely late this summer. Stay tuned for details.

Total sales for May 2013 at the dealership were $533,592, up 8.6 percent from May 2012. Gross profit was also up by 17 percent, at $134,649, when compared to last May.

Fifty new and used units were sold in May, up one unit from May 2012. Unit sales revenue was ahead of last year at $418,861 vs. $388,892 in 2012. The dealership sold 12 new bikes in each month, but sold 16 used bikes last May, compared to only nine this year. Total new and used unit sales for the first five months of 2013 was 265 units, up from 253 units sold during the same period last year.

While new and used motorcycle unit sales were down by about 25 percent at the dealership in May, they compared favorably with Florida’s statewide figures. In May, new and used motorcycles registered by dealers in the state of Florida totaled 3,455 units, down 1,472 units (30 percent) from the May 2012 total of 4,927 units.  

“For the brands we sell,” Shenk says, “Kawasaki statewide sales this May were 246, down from 391 in 2012; Suzuki was 188 down from 421 in 2012, and Yamaha was 326, down from 424 in 2012.”  

Parts revenue was down about $4,000, but accessories sales were up by 21.7 percent ($35,032 compared to $28,818). Service revenues were up by 31.3 percent ($34,086 from $25,967). (Continued)