POPOLI POWERSPORTS; Westfield, MA
Popoli Powersports is a multi-line franchised motorcycle dealership engaged in the sales and service of new and used Honda, Yamaha, Moto Guzzi and Aprilia motorcycles. This business was originally purchased as the first store toward the future development of a regional network of dealerships serving southern New England.It was underperforming the market badly in several sales and operational areas, but had all the right potential for growth.
·Purchased Business and Commercial Real Estate through private equity and SBA debt financing
·Grew annual Revenues from $4.5M to $6M+ over a three year period in a declining market
·Grew Customer Service labor sales more than 200% from a multi year history within 18 Months
·Increased Customer Satisfaction Index from 84% to 96% in first year
·Grew Parts, Garments and Accessories sales by 20% in a market declining 15% annually
·Increased overall Operational Income from 24% to industry leading 29%
·Improved Net Income more than 10% year over year in first three full years of operation
·Recognized by American Honda as “Top 50” Dealer in the nation in 2008
·Analyzed and improved advertising effectiveness by re-casting a reduced advertising budget towards youth sponsorship leading to sales growth and active community involvement.
Unfortunately, despite significant sales and operational improvements, the projections for continued industry decline compounded by poor macro economic conditions and limitations in retail credit no longer supported forward capitalization requirements, the business has been closed.