Why Transparent Pricing Must Start Upstream to Protect Powersports Dealers

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I. Executive Summary
Recent Federal Trade Commission (FTC) actions have fundamentally altered the risk profile for vehicle advertising by mandating that the most prominent advertised price be the "all-in" price. This mandate must include all mandatory fees, such as freight, handling, and preparation, excluding only government fees.

For powersports dealers, this creates a critical structural conflict. While OEMs publish an MSRP that excludes freight and setup costs, they still charge dealers for freight and require technical assembly before a unit is road-ready.  This leaves dealers in an impossible position between advertising a legal all-in price that appears uncompetitively high compared to OEM websites, or an MSRP price that invites regulatory consequences.
 

The current system rewards opacity and punishes transparency. Because freight and setup are mandatory costs, they must be integrated into the pricing structure upstream. To protect the integrity of the retail channel, the NPDA calls for an integrated MSRP that includes freight and a formal reimbursement model for dealer setup. 

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II. Comparative Analysis: Automotive vs. Powersports

The automotive model provides a roadmap for compliance that most powersports OEM’s have yet to adopt. In the automotive world, destination charges are typically integrated into a unified MSRP window sticker known as the Monroney Label. This ensures that the manufacturer and the dealer are speaking the same language to the consumer.
The powersports industry remains fragmented by comparison. By separating these mandatory costs from the advertised MSRP, the industry creates a price discrepancy that invites the very regulatory consequences federal agencies are now actively pursuing

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III. Proposed Solutions and Call to Action

NPDA believes the current status quo is unsustainable. It places the commercial burden, the reputational burden, and the compliance burden on the dealer, even though the dealer does not control the upstream pricing architecture.  To protect the integrity of the powersports retail channel, NPDA calls for two immediate changes.

1. Integrated MSRP

OEMs should move to an all-in MSRP that includes the applicable freight or destination charge. This ensures the consumer sees the same price on the OEM website as they do on the dealer’s website or lot.
 

2. Dealer Reimbursement for Setup

OEMs should adopt a formal reimbursement model for required setup, assembly, inspection, and delivery preparation. Whether that is handled through wholesale pricing or a flat reimbursement structure, the point is the same. Dealers should not have to recover those manufacturer-required costs through a separate setup charge that customers perceive as a dealer-created fee.
 

It is time for manufacturers to modernize their pricing structures to reflect today’s consumer-protection environment. Dealers should not be the ones left carrying the risk for an outdated pricing model that creates unavoidable regulatory exposure at the retail level.

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NPDA

Protecting the Future of Powersports Retail