A strong month brings a record year in sight.
Total sales for November at Destination Powersports slumped, but earnings were up $12,157, or 78.2 percent for the month. Total sales dropped from $408,997 last November to $387,882.
The strong performance came even as owner Bill Shenk and his dealership crew put the finishing touches on a new, larger facility a few blocks away in a much better location. We’ll have more news on the move in our next issue.
Year-to-date earnings through November were more than double those of the same period last year: $287,780 on total revenues of $5,394,101, compared to earnings of $140,225 on revenues of $5,098,709 for the first 11 months of 2012.
Revenues from unit sales for the month were down about $10,000 as total unit sales were about flat, dropping to 40 units from 41 in November 2012. On a year-over-year basis, unit sales also were about flat, slipping slightly from 515 units in 2012 to 509 units in 2013.
Expenses for the month were about flat, as well, but the cost of sales dropped by more than $30,600, yielding a gross profit gain, year over year, of $9,600.
The gross profit (GP) increase on unit sales was $16,661 with the profit per vehicle sold climbing by $513. GP as a percentage of sales was 21 percent, up from 15 percent in 2012.
Primarily, the increase came because the six new motorcycles averaged $1,783 GP/bike vs. $1,054 per unit; there also were huge gains on used motorcycles — even though there were fewer sales.
“We made some really great buys on used bikes,” says Shenk.
There were 21 used bikes sold in 2012 vs 13 in 2013. But in 2013 gross profit per bike was $2,583 (34 percent) vs $1,139 (19 percent) in 2012.
“There were some big home runs there,” says Shenk. “We bought some stuff really, really right.
“A couple of big ones can make all the difference in the world. That’s what saved our bacon.”