By Joel Martin
ver notice how trends just magically appear? You see one person with an iPod at the gym and next thing you know everyone has one. It comes out of nowhere and then it’s everywhere. I’m sure you’re always watching what the dealer down the street is doing, but these days you have to know what the dealer in one state over and all across the country are doing as well. It once took months and sometimes years for trends to make their way from coast to coast. This is no longer the case. As we all know, the Internet has made the world a much smaller place, and the trend that just took hold in California last week may be knocking on your door this week in the form of a father wanting to upgrade his kid’s dune buggy at your dealership. Are you ready?
E
62 A UGUST 2007 • MPNmag.com
MPNmag.com • A UGUST 2007 63
naturally evolving and crossing over into areas currently dominated by UTVs.
3) The ATV Industry Is Under Assault
The Associated Press reported more than 18 ATV-related fatalities during the Memorial Day weekend in screaming headlines. It doesn’t matter to the public that percentage-wise this was a relatively low number. There has been a dramatic rise in the number of ATV accidents, and the mainstream media is once again pointing fingers at the ATV industry. Despite the fact that the majority of these cases involved irresponsible ATV use and an utter lack of protective gear, the mainstream media’s negative portrayal persists. More than likely when an injury is reported, the media “forgets” to mention that a young helmetless child was on an adult ATV. Therefore, it is also likely that when your average soccer mom comes into a dealership on the weekend, she will steer clear of the ATV section. This fear of ATVs and the relative safety of the roll cage offered by go karts has been a driving force behind this trend. Carter’s Robert Belmont certainly believes this is a strong factor in the increase in sales. “Karts are being recognized as the off-road vehicle of choice for rider safety — a powerful machine that doesn’t get you hurt. Wow, what a concept! Sales are going straight up,” says Belmont. In reality, go karts, just like ATVs are dangerous when operated incorrectly. However, they are perceived as being safer due to the roll cage and more stable due to the wider wheels. Make no mistake, they can flip over just the same if not operated correctly. But just as the customer is always right, perception is reality!
www.buggynews.com, and you will see hundreds of weekend warriors wrenching away, upgrading their karts and exchanging ideas on how to better the market. The use of the GY6 and CN250 engine, which are simple to upgrade, allow for the hobbyist to play with his kart without breaking the bank. There are several companies selling upgrades, such as Joyner and MRP.
5) Dealer Enthusiasm Is At An All-Time High
Glade Mason, owner of Edge Powersports in Rexburg, Idaho, has nothing but positive things to say about the brands he carries. Mason praises two of his suppliers in particular. “Both Joyner and Kinroad have very good supplies of parts for their machines.” He notes this is key: ”What I strive to do is give my customers top-notch support and service. I let them know in no uncertain terms that I will provide them complete service after the sale.” Joe Jorgensen of DeserToys in Ontario, California, sells his karts at an average of $5,000 a unit from four different brands including GOKA, NST, Motobravo and TJ Powersports. His enthusiasm comes from the fact he is one of the few in his area that are specializing in the growing sport, carrying everything from 90cc to 1100cc units. Jorgensen beats the online competitors by offering better service. “We explain that our parts and service are reserved first for our customer base,” he says. “The off-road industry is a turbulent sport, and naturally your vehicle will have a failure and need repairs or at the very least maintenance. By buying from a local dealer, you have the service and support that the Internet guy does not offer.” David Lankicsh, owner of ucson, Awesome Buggy in T Arizona, agrees karts are catching on. His shop is currently considered by many distributors as the #1 go kart retailer/importer in America. “Go karts are becoming a little more acceptable by retailers,” he says. Lankicsh is so popular that he has been invited to almost every manufacturer in China as a
Kart Contacts:
Adly Moto LLC 1725 Hurd Drive, Suite 108 Irving, TX 75038 (972) 870-1572 www.adlymoto.com/us ARGO/Ontario Drive & Gear Ltd. 220 Bergey Court New Hamburg, Ontario N3A 2J5 CANADA (519) 662-4000 www.argoatv.com AwesomeBuggy.com 2020 North 10th Avenue Tucson, AZ 85705 (520) 624-6733 www.awesomebuggy.com Bristers Design & Manufacturing Co. 62194 Commercial St. P.O. Box 649 Roseland, LA 70456 (866) 646-5278 www.bristers.com Carter Brothers Mfg. Co. Inc./SYM 1871 U.S. Hwy. 231 Brundidge, AL 36010 (334) 735-2301 www.carterbro.com Chuck Wagon (See Bristers) Club Car/Ingersoll-Rand P.O. Box 204658 Augusta, GA 30917 (706) 863-3000 www.clubcar.com Dazon Inc. 5865 S. Kyrene Road, Suite 1 Tempe, AZ 85283 (480) 968-4300 www.teamdazon.com ETON America LLC 7092 Howard St., Unit F Spartanburg, SC 29301 (864) 278-9585 www.etonamerica.com E-Z-GO/Textron 91451 Marvin Griffin Rd. Augusta, GA 30906 (706) 798-4311 www.ezgo.com Fushin USA 10614 King William Dr. Dallas, TX 75220 (214) 420-7600 www.fushinusa.com Goldenvale Inc./Roketa 2041 S. Turner Ave. Ontario, CA 91761 (909) 975-4488 www.roketa.com
The New Era Of Go Karts
There are countless brands and engine sizes of off-road go karts available on the market, including sand karts up to 1100cc behemoths costing upwards of $50,000. However, the segment with the strongest growth is the Asian-made 90cc to 300cc karts based on the GY6 and CN250 automatic engines. By now most MPN readers have seen ads from multiple Asian importers. You have seen the units on eBay and probably saw a few karts on display at the Dealer Expo as well. I’m sure you’ve also read the reports stating that sales are between 100,000 and 140,000 units a year, but let’s be honest, nobody really knows the figures for sure. However as popular as they may be, most of you are still not selling traditional go karts. Only a small focused core of dealers across the country who are selling online and shipping across the country are benefiting from this new trend. Every year the sales numbers increase, but most of the powersports industry remains blind to the growing influx of buggies. I’m about to give you six reasons why this is all about to change.
Just like in the booming scooter industry, the dealer and the consumer get what they pay for when it comes to warranties and parts, but even the highend models such as the Carter GTR 250 are really affordable when compared to offerings in the ATV market. And have you priced a new Rhino? Many consumers are aware of the brands carried by the Big Box retailers like Sam’s Club with Tomberlin or the smaller karts from Baja Powersports stocked by Pep Boys. On the down side these big volume discounters sell the units at extremely low margins, but they are helping increase overall awareness of the sport.
consultant to help make changes in the vehicles. His experience comes from 17 years as an automotive technician specializing in highend computer diagnostics and having owned an auto repair shop for 10+ years. He sees the market heading in a new direction in 2008. “The market is going towards shifter engines because Americans want speed and more torque. This can only be achieved with a kart that can shift gears and change sprockets,” says Lankicsh. He also believes that the Chinese suppliers are moving towards frame-only packages where the consumers will install their own engines from the likes of Honda, Yamaha and other suppliers.
6) Industry Support Is Growing
A good indication of where a market is headed is reflected in the support the dealers are getting from their suppliers. Just check the trades: You see new opportunities arising as companies begin offering retail financing through firms like GE Finance. The Chinese manufacturers are known for not having a clue as to how to market a product properly in the U.S. but that is changing as new importers are sending out banners, high gloss brochures and promotional incentives. “We currently have six major consumer publications writing about SYM — the company, its manufacturing facility and it’s
2) Higher Capacity Units Means More Sales
Compared to the limited 110cc offerings of a few years back, the go kart industry is launching bigger and bigger models each year. “We see growing interest in larger displacement units with more power and street legal vehicles like in other countries,” says Terry Chia, president of Dazon Inc. He is referring to the fact that in Europe and South America higher capacity buggies can be used as roadworthy vehicles. The bigger engines have also led to other applications according to Teresa Hoffman from Joyner. “We’re most excited about our expanding line of UTVs working with commercial, law enforcement applications and contracts with foreign government military applications.” As the engines get bigger, their uses are
commitment to quality,” comments Carter’s Belmont. Expanding beyond the trades to consumer-direct media shows a positive step in consumer awareness. There are still no real sales figures available, and most distributors would not provide us with a dealer list, only general numbers. There are a wide range of sales figures floating around because of the uncertainty due to the large number of re-badgers, manufacturers represented in the U.S., distributors and importers. However estimates range from 80,000 units to 160,000 units a year. Even these numbers can be confusing because some companies consider these desert buggies, UTV’s and karts meant for indoor tracks getting counted as off-road units. Big Box retailers, as mentioned earlier, have also gotten into the game. You can pick up a GY6 based kart at your local Pep Boys, a Tomberlin 150 at Sam’s, even a 250cc at Costco. The target market is also undefined, but is similar to the scooter market in the sense that there are a broad range of buyers. “The people that are looking for go karts run the range from teenagers to octogenarians, but when you get them all together, they can talk about their go karts,” says Kinroad VP Michael Yuen. Despite the lack of concrete sales figures,
Groundhog Go Karts (See Sunright) Her Chee Parts (See Adly Moto & DRR, Inc.) Jehm Powersports 2612 S. U.S. Hwy. 31/33 Niles, MI 49120 (269) 684-0133 www.jehmpowersports.com Joyner 1510 W. Bell De Mar Tempe, AZ 85283 (480) 813-6363 www.thunderinc.com KartAccessories.com 7516 Precision Dr., Ste. 107 Raleigh, NC 27613 (919) 957-0044 Fax (919) 957-4433 www.kartaccessories.com Kartco Karts Box 110 Sebastopol, MS 39359 (601) 625-7471 www.kartcokarts.com Kasea LLC 6701 East Marginal Way Seattle, WA 98108 (206) 762-7700 www.kasea.com Keeway America LLC 2912 Skyway Circle North Irving, TX 75038 (888) 553-3929 www.keewaymotor.com Kinroad USA 1210 Champion Circle, Suite 210 Carrollton, TX 75006 (469) 461-8886 www.kinroadusa.com Manco Products Inc. 4404 Engle Ridge Dr. Fort Wayne, IN 46804 (260) 432-1596 www.mancopowersports.com Marshin Power/Blue Ridge Global 128 Bingham Road Ashville, NC 28806 (828) 252-5225 www.blueridgeimports.com Martin Racing Performance Inc. 1740 NW 93rd Ave. Miami, FL 33172 (305) 599-8993 www.mrp-speed.com RunMaster Karts
1) Affordable Family Off-Road Fun!
These key words lead to an increase in foot traffic and sales. On average, 90cc to 300cc buggies start at little over a grand and go all the way up to about $3,000. Depending on the brand, you can find several levels of quality on the market.
4) Easy To Upgrade and Perfect Fun For The Weekend Hobbyist
The low cost of entry into the sport makes the go kart market appealing to the weekend hobbyist. Just check
64 A UGUST 2007 • MPNmag.com
MPNmag.com • A UGUST 2007 65
(See Kinroad USA) Sunright International 5965 Peachtree Corners E. Norcross, GA 30071 (770) 729-9065 www.sunright.net SYM (See Carter Brothers) Team Joyner (See Joyner) TJ Powersports 8724 N. Royal Lane Irving, TX 75063 (972) 915-3900 www.tjpowersports.com Tomberlin 3123 Washington Rd. Augusta, GA 30907 (706) 860-8880 www.tomberlin.net Vision Motorsports 151 Equestrian Rd. Ozark, MO 65721 (866) 877-4300 www.visionmotorsport.com XTV (See Carter Brothers) Yerf-Dog (A Division of Flexible Flyer Corp.) 1743 South Horne, #100 Mesa, AZ 85204 (888) 926-6554 www.yerf-dog.com Zebra International/China Off-Road 3122 Enterprise Ave. Joplin, MO 64801 (417) 622-4123
competition from eBay importers and distributor-direct sales, most of the dealers I spoke to are still able to compete. They all report higher than normal sales, an increase in performance parts sales and a growing interest in the sport. The best part is that every single one reported that they are making money, expanding, and happier than they’ve ever been with the sport. You can’t put a price on that. My recommendation is that if you’re not selling go karts, get
to it. Stock parts, stock racing accessories, hit the message boards at www.buggynews.com and encourage weekend rides with your customers. If you are a new dealer, you must know your product. Test-drive the units before you agree to carry them. Stocking the right suppliers and knowing your product will create repeat business and allow you to offer tech support, which is still sadly lacking in the scene. Combine this advice with information you can get by
talking to fellow dealers, reading the trades and researching online in order to come up with your go kart action plan. With more competition comes lower pricing and less profit. Don’t miss this trend’s window of opportunity. I Joel Martin can be contacted at Joel@MRP-SPEED.com He is the president of MRP the leading scooter store supplier in the U.S., when he is not reading MPN.
Dealer Dist/Xtreme Motor Co.
CIRCLE 30 ON REPLY CARD
66 A UGUST 2007 • MPNmag.com