Dave Sullivan
Northern News Services

Hay River (Nov 05/01) - A global economic slowdown won't affect the sales of snowmobiles out of Hay River this year.

One dealership is gearing up for sales increase even greater than a remarkable 150 per cent increase posted last year.

Kingland Ford employee Joseph Villeneuve on one of the snowmobiles on sale in the dealership's showroom. - Dave Sullivan/NNSL Photo

"We expect it to be even more this year," says Richard Birch of Northern Metallic Recreation, which sells Arctic Cat and Polaris models.

Before any snow has even fallen, his sales for September and October so far have tripled, from moving five machines last year to 15 so far. During all of last season the dealership moved 130 snow machines.

Customers are calling nonstop for price comparisons, and even posting everyone's prices in community halls, he said.

Down the street at competitor Kingland Ford, sales of Bombardier sleds are expected to remain the same, with about 120 expected to leave the showroom floor, says recreation sales manager Donna Lee Jungkind.

At Northern Metallic, Birch acknowledges his figures are exaggerated, because of poor management in the past.

"There used to be a Doberman kept inside here. He didn't like a lot of the customers and they were scared away." That was before

Birch took over last July.

Since then, he said, a philosophy of customer service and respect has helped build the store's reputation.

Both dealers say there is a trend toward workhorse and luxury cruising models, compared to lighter racing models.

Jungkind says rock-bottom interest rates should attract customers. She's offering financing for 8.75 per cent, compared to 16 per cent two seasons ago.

The interest rate is always higher for recreation vehicles, she said, because of higher risk involved.

"The snowmobile industry in the North hasn't got anything to do with the economy in the South or even globally," says Jungkind of growing economic worries.

"We make our own trends, and there's a lot of optimism in the North now."

About 30 per cent of Kingland's sales cater to families, while the rest are for busy resource exploration companies, hunters, and those who use them for transportation.