The National Powersports Dealers Association is calling on manufacturers to rethink how powersports units are priced, warning that current practices are putting dealers at risk under new federal pricing transparency rules. The industry is grappling with a growing disconnect between OEM pricing structures and Federal Trade Commission 'all-in' pricing requirements. This mismatch creates compliance challenges for dealers, particularly when it comes to freight and setup fees.
The FTC now requires that the most prominently advertised price include all mandatory charges. However, most OEMs continue to publish MSRPs that exclude freight and setup, leaving dealers to reconcile the difference at the retail level. Dealers are caught in a difficult position: either advertise a higher, all-in price that may appear uncompetitive, or risk running afoul of FTC guidelines by promoting a lower MSRP that doesn't reflect the true out-the-door cost.
The issue creates not only regulatory exposure, but also reputational challenges as consumers increasingly expect upfront pricing. Automotive model manufacturers have already found success with destination charges built into MSRP and displayed on the Monroney label. This approach provides consistency between advertised and in-store pricing, which is essential for building trust with customers.
Two key recommendations are outlined in the NPDA white paper: integrate freight into MSRP and reimburse dealers for setup costs. By doing so, OEMs can ensure that advertised pricing matches what consumers will actually pay before taxes and optional add-ons.
The association stresses that it is time for manufacturers to be part of the solution. Dealers want to compete on a level playing field and build trust with consumers. Alignment with FTC requirements would reduce confusion, improve compliance, and create a more transparent buying experience for customers.
By addressing this issue, OEMs can demonstrate their commitment to transparency and customer satisfaction. The NPDA white paper provides a clear roadmap for manufacturers to follow, ensuring that dealers are not unfairly penalized for trying to provide accurate pricing information.
The powersports industry is closely tied to the automotive sector, and the principles outlined in the white paper have implications beyond just this segment. As consumers become increasingly savvy about pricing, OEMs must adapt to meet their expectations.
Manufacturers can no longer afford to ignore the importance of transparency in auto sales. The NPDA white paper serves as a wake-up call, urging OEMs to take proactive steps to align their pricing with FTC requirements.
The outcome of this push for alignment will be a more level playing field for dealers and a better experience for customers. As the industry continues to evolve, it is essential that manufacturers prioritize transparency and customer satisfaction.
Manufacturers must be part of the solution to build trust with consumers.
