Performance Hot Rod Market
- The hot rod market benefits from continued improvements in technology, but an in-depth and ongoing education is crucial for speed shops in order to keep up with this ever-changing industry.
- Owners want a vehicle that satisfies their individual needs.
- Hot rod owners are dedicated and enthusiastic.
- Hot rod gatherings nationwide reported strong attendance in 2009 and 2010.
- Hot rod enthusiasts have a passion for driving and showing off their cars.
Opportunities for speed shops are linked to discretionary consumer spending on hobbies like hot rodding.
- Individuals continue to hot-rod within the constraints of their budgets.
- Price-conscious people are looking for the best value for the money.
- The performance hot rod industry has become more mainstream.
- The hot rod market has diversified into areas previously not considered to be part of the industry.
- Electronics and mainstream application of turbos and blowers impacts the hot rod industry.
Emerging trends in the hot rod market:
- There has been a contraction of sales from those with less discretionary funds, but enthusiasm is strong.
- There is increased demand for long-block and complete engine sales.
- Hot rodders are looking for tried-and-true engines; higher-quality parts at lower costs.
- There is increased demand for crate engines.
- Hot rodders look for the convenience of “one-stop shopping”.
- More do-it-yourself customers expect more variety and personalization.
- Future hot rod market will include more retrofitted engines.
- Controllable performance is in demand.
Horsepower levels and reliability of late-model engines eclipse that of their early counterparts.
Tips for speed shops to gain market share:
- Provide a high-quality product, offer premium parts; reliable power at a fair price.
- Develop; repair relationships with customers.
- Become more involved at the track.
- Advertise the shop’s expertise and professionalism.
- Learn more about the newest engines; latest products; latest improvements and applications.
- In-depth, ongoing education is crucial to keeping up with improvements in technology.
- The hot rod market will always have enthusiasts who are ready to purchase.
Business is heading in the right direction.
- Education is strong.
- Focus efforts on price, advertising and value.
- The hot rod market is full of people who want something different.