SALT LAKE CITY, Utah - Are you open on Black Friday? If you're not, it may cost you in the long run, according to research issued by ADP Lightspeed.
Black Friday sales are up for powersports dealerships -- and for those dealers that are open, the sales momentum extends into the holiday season, according to researchers.
Five percent of metric dealers were closed on Black Friday in 2010, and that percentage jumped to 9 percent in 2011, according to Hal Ethington of ADP Lightspeed. Only two Harley-Davidson dealerships were closed in 2011, he said.
For those that were open on Black Friday, the sales gains were measurable. Top V-twin dealerships monitored by ADP Lightspeed sold seven times the parts they sold the Friday before Thanksgiving in 2011, Ethington said. The top 10 percent of metric dealerships that were open on Black Friday sold five times what they sold the Friday before.
The sales boost continues into the holiday season. ADP compared sales results for a three-Friday timeframe in 2011 vs. 2010 -- the Friday before Thanksgiving, Black Friday and then the following Friday. V-twin dealers as a group were up 2 percent vs. the three-Friday series in 2010, and the top 10 percent of V-twin dealers were up 13 percent.
"But the real story is in metric," Ethington said. "Sales there went from $9.6 million to $10.2 million for a nice 7 percent increase." Moreover, the top 10 percent of metric dealers monitored by ADP went from $916,000 in sales during the three Fridays in 2010 to $1.225 million during the same three days in 2011. "That's a 34 percent increase!" he noted.
The pattern continued in 2012. Harley-Davidson dealers monitored by ADP saw a 9.9 percent increase in revenue in 2012 vs. the three Fridays in 2011, while metric dealers posted a 3.4 percent increase. For an illustration, visit this link.
"You think that the whole 'Black Friday Thing' doesn't apply to you? Think again," Ethington noted.
Posted by Mary Slepicka