September 2019 GCOptions Sep19 MG | Page 20

INSIDE By Stephen Metzger Managing Director Small Vehicle Resource, LLC [email protected] www.smallvehicleresource.com THE GATED COMMUNITY Product Diversity Heightens the Importance of Dealers I f you hadn’t noticed, personal transportation vehicles are emerging from the factory in greater variety and with more options. As the golf car industry reduces its dependence on golf car fleet sales, and shifts to personal transportation vehicles, dealer networks be- come increasingly more important. In fact, the network of dealers becomes the centerpiece of strategies for growing sales and increasing market share. Model & Features Base MSRP - 4 passenger electric Itemized Cost Cumulative Cost 8,449 Lifted version 550 8,999 Premium seating 675 9,674 Canopy 430 10,104 Tire & wheel assembly 197 10,301 Rear storage trunk 250 10,551 While fleet sales are still the largest compo- nent of unit sales, total segment revenues favor heavily personal transportation vehicles (PTVs). The table below tells you why the revenues from PTVs have surpassed those of the more numer- ous units sold to golf courses: Side mirrors 60 10,611 5-panel mirror 40 10,651 Enclosure 800 11,451 DOT-approved windshield 330 11,781 Bluetooth sound system 450 12,231 As you can see the table on the right relates to Club Car’s popular Onward model. Starting with a base price of $8,500, the got-to-have add-ons bring the total to just under $12,500. So, that is a bump-up of 47%. The base price itself is about $3,000 higher than that of a typical fleet golf car. Golf bag holder 200 12,431 PTV Market More Like Powersports Market The powersports market is quite diverse in its offerings, inclusive, as it is, of motorcycles, off- road vehicles, and snowmobiles. There are well over 1,000 different models from numerous large manufacturers, including Polaris Indus- tries, Yamaha, Kawasaki, Textron Off-Road, and American Landmaster. 20 Club Car Onward® Pricing Matrix WWW.GOLFCAROPTIONS.COM Source: Small Vehicle Resource, LLC/www.clubcar.com With the emergence of the PTV, the traditional golf car product is beginning to resemble the same aspects of personalized di- versity that characterizes the plethora of powersports offerings. While the PTV market is still dominated by the “Big Three” of the golf car industry, do not be surprised if new companies enter the market with new designs and features. 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