Snow Businesses Dream of a White Christmas
YOUNGSTOWN, Ohio -- As the snow falls, business rises for vendors that thrive during the cold-weather months.
Companies that sell snow blowers, generators, plow blades, off-road vehicles and snowmobiles are girding themselves for what they believe will be a very busy winter.
“It’s surprising how many people come in during a snowstorm,” says Dante Terzigni, president of Do-Cut Sales and Service Inc., a full-service hardware store with outlets in Boardman and Warren.
On average, the stores sell “a few hundred” snow blowers per year, Terzigni reports, but business often depends on the weather. “We usually buy ahead of season and base it on the previous winter.”
Last winter the Mahoning Valley was hit hard but late with snow, and often it’s the first flurries or measurable snowfall that starts to bring customers through the doors. “So far, we’ve had some good pre-season sales,” he says, helped by an early blast of cold weather and snow. “There seems to be more demand this year.”
Concerns over losing power during a snowstorm and frigid temperatures have led to higher sales of gasoline-powered generators. “Generators have become more popular over the years, Terzigni says. “People don’t want to be without power,” he says.
Today’s generator is much quieter than older models, and higher quality machines provide a longer lasting, portable means of backing up electrical power should an outage occur. “Honda makes a generator that’s cleaner than the electricity we get out of our power lines,” Terzigni says. “When you need it, you want it to work.”
Other indications in the local market point to a snowier winter than previous seasons, says Adam Meyers, salesman at Meyers Equipment Corp., Ellsworth. “There’ve been a lot of sales these last couple weeks,” he reports. “Everyone is anticipating a rough winter.”
That means more winter business for Meyers Equipment, which supplies service and parts for trucks, buses, vans, and commercial vehicles such as ambulances. During the cold months, the company shifts into winter mode with sales of salt spreaders, bag salt and snow plows. “We sell plows to the big guys and little guys,” he says. “It’s one of our hotter items.”
Landscapers who make additional money during the off-season often mount plows on their trucks and need to replace the blades. Some residential customers use smaller blades on tractors. “It’s looking to be a promising winter” for business, Meyers observes.
Meyers says the calcium chloride added to salt spread on highways and roadways takes a big toll on vehicles. “Salt is actually easier on vehicles,” he says, but the calcium chloride attacks vehicle exteriors much faster.
Most of the snowmelt used on roads today is calcium chloride, which eats away at wheel wells and undercarriages. “We’re seeing a lot of it in the school buses” that come in for repairs, he notes. “It’s becoming a plague.”
While snow supplies are already in high demand from those looking to clear driveways, walkways and streets, sportsmen who love to ride snowmobiles are also preparing for winter.
“Anytime we see snow, the ‘sled-heads’ come out,” laughs Scott Dolan, head of marketing at Johnny K’s Powersports in Niles. “The snow-mobile guys keep us going all the way through March. It’s about a four-to-five month season for us.”
Brands such as Ski-Doo and Arctic Cat sell very well in this market, but the last few winters have not been conducive for snowmobile activity. “A lot of people were buying them here, but traveling to New York to ride,” Dolan reports. “
In the United States, the snowmobile industry generates about $26 billion each year in economic activity, according to the International Snowmobile Manufacturers Association.
Last year, 48,536 snowmobiles were sold in the United States, another 44,022 in Canada. As of this year, there are 14,000 snowmobiles registered in Ohio, according to International Snowmobile data.
“There’s been so much progression in this industry,” Dolan notes. “The engines are more efficient than ever, and the chassis are very rider-friendly.”
All-terrain vehicles, or ATVs, also sell well during the winter months, Dolan says. “They’re pretty popular, since a lot of people put snow plows on them,” he says. And, the higher-end utility-terrain vehicles, or UTVs, are now big sellers during the snow season.
“We’re starting to sell more and more of these,” Dolan affirms. “These drive more like a car,” he says, and can be customized with enclosures, wiper blades and heat, and have enough horsepower to haul or plow. “They’ve got bigger engines, a lot more power, and have a lot more uses.”
But business for these companies during winter still hinges on that big question – how much will it snow?
“According to the [Old] Farmer’s Almanac, it’s looking like a good winter snow-wise,” Meyers Equipment Co.’s Meyers says. “I think a lot of people rely on that, and I’d say 80% of the time, you can bet on it.”
EDITOR'S NOTE: This story appears in the December edition of The Business Journal, in subscribers' mailboxes today.
Copyright 2013 The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our free daily email headlines and to our twice-monthly print edition.