Everywhere you look, green products are surging in popularity; the categories of powersports and lawn and garden are no exception. Demand for electric, solar, and battery-powered alternatives comes as consumers use their wallets to demonstrate social responsibility, and as governments overhaul regulations with an eye on the environment.
Manufacturers are clearly paying attention. Recent introductions include electric bikes, battery-operated landscaping tools, and even autonomous lawn mowers. Many other eco-friendly options are in the works.
Recent sales numbers prove these trends make a bottom-line impact for dealers. Electric-powered consumer and handheld lawn and garden equipment purchases have grown by double digits in the past few years, while in the same period, gas-powered devices often experienced flat or negative growth.1 In 2020 alone, electric equipment purchases grew 20 percent.1
Refresh your inventory and your go-to-market approach
What does it mean for dealers in lawn and garden products and powersports equipment? It’s an ideal time to refresh your inventory and reinvent your go-to-market approach.
Wells Fargo did just that with WMR Competition Performance of southern Florida. Long known for motorsports, they expanded their product offerings to include electric motorcycles and dirt bikes. Their go-to-market activities included sponsoring the Junior Racer circuit for youth racing, and updating their floor plan financing to consider the requirements for green products.
Custom programs like these, from a commercial lender with a collaborative approach, national footprint and strong industry knowledge, are key. As new regulations incent communities, businesses, and consumers to consider green alternatives, dealers must be ready to capitalize on the opportunity.
Follow a new playbook to capture green product opportunities
The playbook for any dealer looking to capitalize on eco-friendly products includes attention to these details:
- New audiences. With a broader selection of inventory than traditional gas-powered models, dealers can attract a wider range of consumers. Cultivating new buyers helps dealerships thrive.
- Improved branding. Promoting green products demonstrates innovation, leadership, and sustainability. These are great attributes to put forward in your dealership brand; they resonate with consumers and set you apart from the competition.
- Creative marketing. Getting the word out about new electric, battery, and solar-powered options is key. Advertising, social media, video, kiosks, and sponsorships are all helpful to attract new buyers—and help past customers rethink their next purchase.
- Flexible financing. While demand is strong (and growing rapidly) for eco-friendly products, their sales cycles can be longer than traditional models. Working with your bank on flexible floor plan financing, such as extended terms for green models, will help you accommodate all types of inventory.
- Market leadership. Dealers who get into the market now with green powersports and lawn and garden equipment stand to gain a smart competitive advantage. You can cement your reputation as an early adopter and quickly grow market share in this emerging segment.
A forward-thinking financial resource plays a vital role. With more than 40 years’ industry experience, Wells Fargo continues to take a proactive approach to initiatives like eco-friendly products. Our commitment includes prioritizing sustainable finance and is a key way we can help our manufacturers and dealers stay relevant and profitable in the market. Our blend of stability, leadership, and market expertise enables us to build productive relationships and launch creative solutions to support our customers’ goals.
1 OPEI, “US Econometric Forecast for Consumer Products Commercial Turf Care Products Handheld Equipment,” CDF Analysis