Using Cyberspace to Grow the Motorsports Business

Bruce Puckett, owner of West Plains Motorsports in West Plains, Missouri, does not allow state boundaries to limit his earning potential. The dealership uses the internet and telephone to sell ATV parts and accessories around the country. He has also sold some used ATVs on eBay. In 2005 the dealership garnered $4,850,000 in revenue in the motorcycle/ATV category alone.

Puckett purchased the existing dealership in 1997. It offers Polaris, Yamaha, and Arctic Cat ATVs; Yamaha and Victory motorcycles; Ariens, Dixon, Gravely, and Husqvarna mowers; and Shindaiwa, Tanaka, and Husqvarna lawn and garden products. It also offers OEM parts and accessories and aftermarket parts and accessories from a variety of vendors. He claimed that he keeps an inventory of $350,000 to $400,000.

According to Puckett, sales in the ATV category accounts for about 70 percent of his total sales. He said that 85 percent of the ATV sales are under the utility category and 15 percent fall under sports. Customers who visit the dealership to buy an ATV commonly leave with one. There is usually no waiting time for them to get their hands on their vehicle. If the customer wishes to customize the ATV he or she is buying, the customization is done by West Plains Motorsports on the same day of the purchase. Puckett volunteered that about 75 percent to 90 percent of the customers who purchase ATVs customize them. He said that the dealership earns an average of $350 on sales of accessories on each ATV unit he sells. West Plains is able to do this because it keeps a deep inventory of the accessories that sell. "Any fast moving accessories, especially in the Polaris and Yamaha's Ranger line, we keep in inventory," said Puckett. "We have a software program that keeps a history of sales. So we can keep track of the items that are selling well and inventory them." He said that the accessories and parts he does not inventory he can get from vendors in about two to three days.

West Plains Motorsports has an amble number of employees who can install the accessories and parts and maintain the ATVs. The company employs three full time technicians, a service manager, and an assembly guy and also has a part time person who works assembly.

The dealership offers a maintenance program to all customers who purchase an ATV. The customer is encouraged to bring his or her ATV back to West Plains Motorsports every six months or 500 miles. The program offers six services on discount. The dealership also stores ATVs for customers. "We have indoor storage space," said Puckett. "Our main storage facility is 40 by 80. We built another facility that is 30 by 50 and now we are stacking them in available space in the dealership. We also have a 30 by 60 facility off the dealership property." Puckett charges $10 a month to store an ATV. When the owner comes back to retrieve his or her ATV, West Plains Motorsports will service it before returning it.

To encourage more sales, Puckett permits a potential customer to take an ATV to try it out before purchasing it. Usually, he allows customer's to take the vehicle for about a week. But he has been known to allow potential buyers to keep the demo for up to 30 days. "Ninety percent of the time, when we allow a customer to take a demo they will buy it," said Puckett. "The longer I leave a vehicle with them, the more of a chance I will sell it." He said that a great advantage of this policy is that it shows the person who uses the ATV how essential it can be. "Farmers' wives love it," said Puckett. "They use the ATVs to go from chore to chore around the farm and they want it. When I contact the customer to return the demo I usually talk to the wife because she always wants to buy rather than give it up."

Puckett said that he avoids selling ATVs to kids under the age of 16. And in all cases when a kid is involved, a parent must also be present. "If a kid younger than 20 comes in to buy an ATV I always check with their parents," said Puckett.

Nearby Resort And Internet Account for More Sales
About 18 miles from West Plains Motorsports is Cloud Nine Ranch. The 6,000 acre resort attracts professional people and retirees from around the country who stay there for up to months at a time. These guests have and are purchasing ATVs from West Plains. According to Puckett, he sells 60 to 80 utility vehicles a year. And, when the guests leave the resort, they store their ATVs at West Plains. "We started selling Polaris ATVs to Cloud Nine guests in 1999," said Puckett. "At the time Cloud Nine had a manager who wanted to do on-site sales of ATVs during the major holidays. We made an agreement with him and paid to have a presence there. Now it is an annual thing."

Another source of income is the internet. The dealership has a website (http://www.westplainsmotorsports.com) which it first put on line in May, 2005. "We've tried websites in the past but we didn't have much success," said Puckett. "When my son Jerod joined the dealership full time, he took over the responsibility of the website. We spent $5,000 on it up front and it paid for itself within three months." Besides managing the website, Jerod is also the company's sales manager.

"The main thing the website did was to connect us to independent dealers around the country who need parts and accessories," said Puckett. "We can sell them aftermarket parts and accessories cheaper than they can buy them." According to Puckett, he can turn around an internet order in two to three days. He also offers next day delivery if the out of state dealer is willing to pay. He added that if West Plains Motorsports does not have the part or accessory being ordered on hand, turn around time is five days. The company does not sell ATVs through its website.

The website shows all products West Plains sells and also includes an OEM parts finder to assist customers to find a part they need and then ascertain the part number so that they can order the part via the website or by phone.

Puckett claimed that the website added $700,000 to the company's revenue in 2005.

Another source for out-of-state sales is the old fashion telephone. Puckett explained that the previous owner built up a pretty good business using his 800 phone number. "He built connections outside the state and we continue to get clients there." Puckett added then when things are slow he assigns an employee to work the phone to contact independent parts shops around the country.

Pro Racer and Community Service
2006 marks the first year that West Plains Motorsports will be sponsoring a pro racer. "A guy who worked for us, Joe Davis, is an ATV racer. He finished third in the state three years ago. We wanted a way to enter the racing market and to do that you really need someone actually in the sport representing you. So we spent $17,000 and built a unit for Davis out of a Yamaha YFZ 450. He will be racing and we will sponsor him and we will also exhibit at the races he participates in," said Puckett.

In addition, Puckett gets involved in the community. He has donated products to the local police department and supplies safety video classes from the ATV Safety Institute to schools and to the Cloud Nine Ranch. He also goes to high schools once or twice a year to give safety talks to seniors and he sends out safety flyers for insurance companies.

Involved in the market since 1997, Puckett has seen changes in the demographics of who is buying ATVs. "It used to be joyrider's and farmers who were buying the vehicles. Now we are finding more professional people who are buying the units. They may use them three or four times a year but they are spending the money when they buy them to accessorize and deck them out." He also noted that more women and retirees are buying the machines.

The Future
Puckett plans to acquire more dealerships in the not to distant future. "I look to have five stores within the next five years," he said. He volunteered that he is in negotiations to buy a dealership in Arkansas. West Plains Motorsports is located close to the Arkansas border. "I think things are getting more competitive," concluded Puckett. "I think you need to be a multi-store dealership to survive the next 10 years. And the bigger you get, the more OEM wants to get involved with you."