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PEMBROKE, NH – National Powersports Distributors is going back to its roots; surrendering new bike brands at its stores in New Hampshire and New York and returning to selling only used motorcycles. The switch is effective this coming Thursday, Aug. 1.
The company is giving up Triumph in Pembroke, NH and Kawasaki, BRP, Honda and Triumph in Coxsackie, NY. Owner Nate Sanel explained his decision in a post this week on LinkedIn. He noted that after “deep analysis and much discussion with our management team,” the company plans to rededicate “our focus back on the one thing that we do better than anyone else, Pre-owned.”
In explaining National Powersports’s decision to opt out of selling new models, Sanel pulled back the curtain a bit on the motorcycle business.
“In 2023 new unit sales made up 9% of our total revenue (Pembroke), but took up the vast majority of our administration time. Both the margin and the turns are less than 1/2 of what we realize with pre-owned,” he wrote.
“We’ve had to change our marketing and message by charging some fee’s on new units, so as not to lose money, even selling at MSRP. We have seen a huge decline in both the profitability and support from the OEMS. With an over abundance of new inventory in the marketplace due to over production, there is a race to the bottom amongst the dealers, reducing profitability to near zero as inventory swells and interest expenses gobble up any left over profits.
“Yet, even in this environment the OEMS have continued to try force us into huge stocking orders, $30,000 showroom upgrades, $10,000 displays and sternly worded legal documents accusing us (incorrectly) of selling units out of a non-approved location.”
National Powersports Distributors began selling used motorcycles some 22 years ago on eBay and grew into a major player in New England selling vintage models. It added Triumph in New Hampshire almost 10 years ago and later acquired an existing dealership in New York. RIDE-CT did a story on the company in 2017.
Sanel concluded his post on an upbeat note. “The entire team knows the path forward and is 100% committed to the plan. I haven’t seen this type of solidarity amongst them in years and I’m humbled by the excitement. Not surprisingly, we’re having one of the best Julys we’ve ever had. It’s time to refocus on eliminating the customers pain, because that’s what got us here in the first place.”
