MPNmag.com • AUGUST 2007 6362 AUGUST 2007 • MPNmag.com

Ever notice how trends just magically appear? You see one person with an iPod atthe gym and next thing you know everyone has one. It comes out of nowhere andthen 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 andall across the country are doing as well. It once took months and sometimes years fortrends 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 holdin California last week may be knocking on your door this week in the form of a fatherwanting to upgrade his kid’s dune buggy at your dealership. Are you ready?

By Joel Martin

MPNmag.com • AUGUST 2007 65

The New Era Of Go KartsThere are countless brands andengine sizes of off-road go kartsavailable on the market,including sand karts up to1100cc behemoths costingupwards of $50,000. However,the segment with the strongestgrowth is the Asian-made 90ccto 300cc karts based on theGY6 and CN250 automaticengines. By now most MPNreaders have seen ads frommultiple Asian importers. Youhave seen the units on eBayand probably saw a few kartson display at the Dealer Expoas well. I’m sure you’ve also readthe reports stating that salesare between 100,000 and140,000 units a year, but let’sbe honest, nobody really knowsthe figures for sure.

However as popular as theymay be, most of you are still notselling traditional go karts. Onlya small focused core of dealersacross the country who areselling online and shippingacross the country arebenefiting from this new trend.Every year the sales numbersincrease, but most of thepowersports industry remainsblind to the growing influx ofbuggies. I’m about to give yousix reasons why this is all aboutto change.

1) Affordable Family Off-Road Fun!These key words lead to anincrease in foot traffic and sales.On average, 90cc to 300ccbuggies start at little over agrand and go all the way up toabout $3,000. Depending onthe brand, you can find severallevels of quality on the market.

Just like in the booming scooterindustry, the dealer and theconsumer get what they pay forwhen it comes to warrantiesand parts, but even the high-end models such as the CarterGTR 250 are really affordablewhen compared to offerings inthe ATV market. And have youpriced a new Rhino?

Many consumers are awareof the brands carried by the BigBox retailers like Sam’s Clubwith Tomberlin or the smallerkarts from Baja Powersportsstocked by Pep Boys. On thedown side these big volumediscounters sell the units atextremely low margins, butthey are helping increaseoverall awareness of the sport.

2) Higher Capacity UnitsMeans More SalesCompared to the limited 110ccofferings of a few years back,the go kart industry islaunching bigger and biggermodels each year. “We seegrowing interest in largerdisplacement units with morepower and street legal vehicleslike in other countries,” saysTerry Chia, president of DazonInc. He is referring to the factthat in Europe and SouthAmerica higher capacitybuggies can be used as road-worthy vehicles.

The bigger engines have alsoled to other applicationsaccording to Teresa Hoffmanfrom Joyner. “We’re mostexcited about our expandingline of UTVs working withcommercial, law enforcementapplications and contracts withforeign government militaryapplications.” As the enginesget bigger, their uses are

naturally evolving and crossingover into areas currentlydominated by UTVs.

3) The ATV Industry Is Under AssaultThe Associated Press reportedmore than 18 ATV-relatedfatalities during the MemorialDay weekend in screamingheadlines. It doesn’t matter tothe public that percentage-wisethis was a relatively lownumber. There has been adramatic rise in the number ofATV accidents, and themainstream media is onceagain pointing fingers at theATV industry. Despite the factthat the majority of thesecases involved irresponsibleATV use and an utter lack ofprotective gear, themainstream media’s negativeportrayal persists. More thanlikely when an injury isreported, the media “forgets”to mention that a younghelmetless child was on anadult ATV. Therefore, it is alsolikely that when your averagesoccer mom comes into adealership on the weekend,she will steer clear of the ATVsection. This fear of ATVs andthe relative safety of the rollcage offered by go karts hasbeen a driving force behindthis trend.

Carter’s Robert Belmontcertainly believes this is astrong factor in the increase insales. “Karts are beingrecognized as the off-roadvehicle of choice for rider safety— a powerful machine thatdoesn’t get you hurt. Wow,what a concept! Sales are goingstraight up,” says Belmont.

In reality, go karts, just likeATVs are dangerous whenoperated incorrectly. However,they are perceived as beingsafer due to the roll cage andmore stable due to the widerwheels. Make no mistake, theycan flip over just the same ifnot operated correctly. But justas the customer is always right,perception is reality!

4) Easy To Upgrade andPerfect Fun For TheWeekend HobbyistThe low cost of entry into thesport makes the go kartmarket appealing to theweekend hobbyist. Just check

www.buggynews.com, and youwill see hundreds of weekendwarriors wrenching away,upgrading their karts andexchanging ideas on how tobetter the market. The use ofthe GY6 and CN250 engine,which are simple to upgrade,allow for the hobbyist to playwith his kart without breakingthe bank. There are severalcompanies selling upgrades,such as Joyner and MRP.

5) Dealer Enthusiasm IsAt An All-Time HighGlade Mason, owner of EdgePowersports in Rexburg, Idaho,has nothing but positive thingsto say about the brands hecarries. Mason praises two ofhis suppliers in particular. “BothJoyner and Kinroad have verygood supplies of parts for theirmachines.” He notes this is key:”What I strive to do is give mycustomers top-notch supportand service. I let them know inno uncertain terms that I willprovide them complete serviceafter the sale.”

Joe Jorgensen of DeserToysin Ontario, California, sells hiskarts at an average of $5,000a unit from four differentbrands including GOKA,NST, Motobravo and TJPowersports. His enthusiasmcomes from the fact he is one ofthe few in his area that arespecializing in the growingsport, carrying everything from90cc to 1100cc units.Jorgensen beats the onlinecompetitors by offering betterservice. “We explain that ourparts and service are reservedfirst for our customer base,” hesays. “The off-road industry is aturbulent sport, and naturallyyour vehicle will have a failureand need repairs or at the veryleast maintenance. By buyingfrom a local dealer, you havethe service and support thatthe Internet guy does not offer.”

David Lankicsh, owner ofAwesome Buggy in Tucson,Arizona, agrees karts arecatching on. His shop is currentlyconsidered by many distributorsas the #1 go kartretailer/importer in America. “Gokarts are becoming a little moreacceptable by retailers,” he says.

Lankicsh is so popular that hehas been invited to almost everymanufacturer in China as a

consultant to help makechanges in the vehicles. Hisexperience comes from 17years as an automotivetechnician specializing in high-end computer diagnostics andhaving owned an auto repairshop for 10+ years. He seesthe market heading in a newdirection in 2008. “The marketis going towards shifter enginesbecause Americans want speedand more torque. This can onlybe achieved with a kart that canshift gears and changesprockets,” says Lankicsh. Healso believes that the Chinesesuppliers are moving towardsframe-only packages where theconsumers will install their ownengines from the likes of Honda,Yamaha and other suppliers.

6) Industry Support Is GrowingA good indication of where amarket is headed is reflected inthe support the dealers aregetting from their suppliers.Just check the trades: You seenew opportunities arising ascompanies begin offering retailfinancing through firms likeGE Finance. The Chinesemanufacturers are known fornot having a clue as to how tomarket a product properly inthe U.S. but that is changing asnew importers are sending outbanners, high gloss brochuresand promotional incentives.

“We currently have six majorconsumer publications writingabout SYM — the company, itsmanufacturing facility and it’s

commitment to quality,”comments Carter’s Belmont.Expanding beyond the trades toconsumer-direct media shows apositive step in consumerawareness.

There are still no real salesfigures available, and mostdistributors would not provideus with a dealer list, onlygeneral numbers. There are awide range of sales figuresfloating around because of theuncertainty due to the largenumber of re-badgers,manufacturers represented inthe U.S., distributors andimporters. However estimatesrange from 80,000 units to160,000 units a year. Eventhese numbers can beconfusing because somecompanies consider thesedesert buggies, UTV’s and kartsmeant for indoor tracks gettingcounted as off-road units.

Big Box retailers, asmentioned earlier, have alsogotten into the game. You canpick up a GY6 based kart atyour local Pep Boys, aTomberlin 150 at Sam’s, even a250cc at Costco. The targetmarket is also undefined, but issimilar to the scooter market inthe sense that there are abroad range of buyers. “Thepeople that are looking for gokarts run the range fromteenagers to octogenarians, butwhen you get them alltogether, they can talk abouttheir go karts,” says Kinroad VPMichael Yuen. Despite the lackof concrete sales figures,

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Groundhog Go Karts(See Sunright)

Her Chee Parts(See Adly Moto & DRR, Inc.)

Jehm Powersports2612 S. U.S. Hwy. 31/33Niles, MI 49120(269) 684-0133www.jehmpowersports.com

Joyner1510 W. Bell De MarTempe, AZ 85283(480) 813-6363www.thunderinc.com

KartAccessories.com7516 Precision Dr., Ste. 107Raleigh, NC 27613(919) 957-0044 Fax (919) 957-4433www.kartaccessories.com

Kartco KartsBox 110Sebastopol, MS 39359(601) 625-7471www.kartcokarts.com

Kasea LLC6701 East Marginal WaySeattle, WA 98108(206) 762-7700www.kasea.com

Keeway America LLC2912 Skyway Circle NorthIrving, TX 75038(888) 553-3929www.keewaymotor.com

Kinroad USA1210 Champion Circle, Suite 210Carrollton, TX 75006(469) 461-8886www.kinroadusa.com

Manco Products Inc.4404 Engle Ridge Dr.Fort Wayne, IN 46804(260) 432-1596www.mancopowersports.com

Marshin Power/Blue Ridge Global128 Bingham RoadAshville, NC 28806(828) 252-5225www.blueridgeimports.com

Martin Racing Performance Inc.1740 NW 93rd Ave.Miami, FL 33172(305) 599-8993www.mrp-speed.com

RunMaster Karts

Kart Contacts:Adly Moto LLC

1725 Hurd Drive, Suite 108Irving, TX 75038(972) 870-1572

www.adlymoto.com/us

ARGO/Ontario Drive & Gear Ltd.220 Bergey Court

New Hamburg, OntarioN3A 2J5CANADA

(519) 662-4000www.argoatv.com

AwesomeBuggy.com2020 North 10th Avenue

Tucson, AZ 85705(520) 624-6733

www.awesomebuggy.com

Bristers Design & Manufacturing Co.62194 Commercial St.

P.O. Box 649Roseland, LA 70456

(866) 646-5278www.bristers.com

Carter Brothers Mfg. Co. Inc./SYM1871 U.S. Hwy. 231

Brundidge, AL 36010(334) 735-2301

www.carterbro.com

Chuck Wagon(See Bristers)

Club Car/Ingersoll-RandP.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 LLC7092 Howard St., Unit FSpartanburg, SC 29301

(864) 278-9585www.etonamerica.com

E-Z-GO/Textron91451 Marvin Griffin Rd.

Augusta, GA 30906(706) 798-4311www.ezgo.com

Fushin USA10614 King William Dr.

Dallas, TX 75220(214) 420-7600

www.fushinusa.com

Goldenvale Inc./Roketa2041 S. Turner Ave.Ontario, CA 91761

(909) 975-4488www.roketa.com

66 AUGUST 2007 • MPNmag.com

to it. Stock parts, stock racingaccessories, hit the messageboards at www.buggynews.comand encourage weekend rideswith your customers. If you area new dealer, you must knowyour product. Test-drive theunits before you agree to carrythem. Stocking the rightsuppliers and knowing yourproduct will create repeatbusiness and allow you to offertech support, which is stillsadly lacking in the scene.Combine this advice withinformation you can get by

talking to fellow dealers,reading the trades andresearching online in order tocome up with your go kartaction plan. With morecompetition comes lowerpricing and less profit. Don’tmiss this trend’s window ofopportunity. n

Joel Martin can be contacted atJoel@MRP-SPEED.comHe is the president of MRPthe leading scooter storesupplier in the U.S., when heis not reading MPN.

competition from eBayimporters and distributor-directsales, most of the dealers Ispoke to are still able tocompete. They all report higherthan normal sales, an increasein performance parts sales anda growing interest in the sport.The best part is that everysingle one reported that theyare making money, expanding,and happier than they’ve everbeen with the sport. You can’tput a price on that.

My recommendation is that ifyou’re not selling go karts, get

(See Kinroad USA)

Sunright International5965 Peachtree Corners E.

Norcross, GA 30071(770) 729-9065

www.sunright.net

SYM(See Carter Brothers)

Team Joyner(See Joyner)

TJ Powersports8724 N. Royal Lane

Irving, TX 75063(972) 915-3900

www.tjpowersports.com

Tomberlin3123 Washington Rd.

Augusta, GA 30907(706) 860-8880

www.tomberlin.net

Vision Motorsports151 Equestrian Rd.Ozark, MO 65721

(866) 877-4300www.visionmotorsport.com

XTV(See Carter Brothers)

Yerf-Dog(A Division of Flexible Flyer Corp.)

1743 South Horne, #100Mesa, AZ 85204(888) 926-6554

www.yerf-dog.com

Zebra International/China Off-Road3122 Enterprise Ave.

Joplin, MO 64801(417) 622-4123

Dealer Dist/Xtreme Motor Co.

CIRCLE 30 ON REPLY CARD