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What you should stock and how your staff should talk about it to improve the bottom line
JULY 2014 VOL. 40 NO. 7
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Destination Dealer: BMW of Ventura
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OEM Update: Yamaha Viking VI
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Keeping Up Appearances: Cleaners & Polishes
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Product Focus: UTV Accessories
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Contents
Volume 40 Number 7 MotorcyclePowersportsNews.com
EDITORIAL
Accessorizing the Adventure Rider
Editor – Brendan Baker bbaker@babcox.com
Help Your Customers Escape the Shackles of Civilization By Alisa Clickenger
Cover photo provided by Alisa Clickenger
Managing Editor – Greg Jones gjones@babcox.com
Dealership Operations The Brotherhood of Bikers
4
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12
All the News that Fits by Robin Hartfiel
Holding the Line
Columnists & Contributors
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The Road Ahead by Brendan Baker
Shifting Gears
Editor-at-Large – Robin Hartfiel robinhartfiel@gmail.com
Eric Anderson Steve Dodds II Steve Jones Alisa Clickenger Jim Woodruff CJ Pedler C.R. Gittere
14
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ART
NPA Pre-owned Monthly Recap by Jim Woodruff
Gibbs Launches 2014 Model Line-Up
22
Graphic Designer – Kelly Gifford kgifford@babcox.com
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PWC Update by Gibbs Amphibian
BMW Motorcycles of Ventura County
24
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Destination Dealership by Alisa Clickenger
Dealer New Units in Stock
26
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Inventory Report by ADP Lightspeed
Yamaha Viking VI
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Official Publisher of the AIMExpo Show Daily and Show Directory
28
OEM Update by Robin Hartfiel
The Absolutes of Parts Department Discounting
42
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Dealer Management by CJ Pedler
Mid-Summer Sizzle
44
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Service Manager by C.R. Gittere
May Sales Department Performance
46
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Best Operators Club by Steve Jones
Five Keys To Finding Your Next Big Lender
50
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Finance & Insurance by Steve Dodds II
Kurt Caselli Foundation Fundraiser
Product Focus Adventure/Touring Gear ..................................................... 18 Keep your customers looking sharp
56
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Pit Pass
UTV Accessories..................................................................... 32 What customers can add on to their UTVs
Cleaners and Polishes......................................................... 36 Bring out more than just a shine MPN (ISSN 0164-8349) is published monthly by Babcox Media, Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, Fax (330) 670-0874. Periodical postage paid at Akron, OH 44333 and additional mailing offices. POSTMASTER: Send address changes to MPN, P.O. Box 13260, Akron, OH 44334-8660. A limited number of complimentary subscriptions are available to individuals who meet the qualification requirements. Call (330) 670-1234, Ext. 242, to speak to a subscription services representative. Paid Subscriptions are available for non-qualified subscribers at the following rates: U.S.: $69 for one year. (OH residents add 5.75% sales tax) Canada/Mexico: $89 for one year. Canadian rates include GST. Other foreign rates: $129 for one year. Payable in advance in U.S. funds. Mail payment to MPN - Circulation, P.O. Box 75692, Cleveland, OH 44101-4755.
2 July 2014 | Motorcycle & Powersports News
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THE
Road AHEAD
By Brendan Baker
ADVERTISING SALES Publisher Greg Cira Associate Publisher Sean Donohue
gcira@babcox.com (330) 670-1234 ext. 203 sdonohue@babcox.com (330) 670-1234 ext. 206
Display Advertising Sales Roberto Almenar Tom Staab Bobbie Adams Doug Basford
The Brotherhood of Bikers
O
ne of the things that makes this industry so special is the brotherhood that is prevalent among fellow bikers – whether you are a moto dude, cruiser guy or scooter girl – we all stick together and help each other out when the chips are down. Can you imagine if corporate America acted with these same principles? Ah, but I digress. A few weeks ago I set out on my vintage café racer for a spirited ride through the countryside to my grandparent’s house. I wasn’t going for the “Ton” or anything of that sort. I was simply trying to get some miles in and enjoy the beautiful weather we were having, but that turned quickly when my bike ground to a halt halfway to my destination. We’ve all experienced it, but it had been a while since it happened to me. I was testing out a new helmet and jacket so I didn’t even have tools with me. I generally keep a pocketful of tools in my customary leather jacket. I can’t even take the seat off without a 6mm allen wrench. Of course, the battery is under the seat, so I have to call for help.
While parked on the side of the road, car after car passed by with no one even blinking at me and my stranded bike. After several cars drove by, a guy on a Triumph Speedmaster stops to ask if I need help. He didn’t have any tools, but mainly wanted to talk about his bike and ask about mine. That was great and all, but I was still stranded. When my brother finally showed up with a few tools, we got the seat off and discovered the 12 amp glass fuse had blown, cutting the power from the battery. We didn’t have a fuse, however, at just the right moment, Brian on a Harley Street Glide came to the rescue. He lived a few minutes away and had a glass fuse at home and said he’d be right back. A few minutes later, there he was with the fuse in hand. He even installed it for me, and I was off and running again. The generosity of bikers plays out over and over in our industry with riders from adventure bikes (which we highlight in this issue) to a little old CB350 wannabe café racer. I told Brian I would pay it forward, and I intend to keep my promise. t
Brendan Baker, Editor
David Benson Dean Martin Jim Merle Glenn Warner John Zick Don Hemming
ralmenar@babcox.com (330) 670-1234, ext. 233 tstaab@babcox.com (330) 670-1234, ext. 224 badams@babcox.com (330) 670-1234, ext. 238 dbasford@babcox.com (330) 670-1234, ext. 255 dbenson@babcox.com (330) 670-1234, ext. 210 dmartin@babcox.com (330) 670-1234, ext. 225 jmerle@babcox.com (330) 670-1234, ext. 280 gwarner@babcox.com (330) 670-1234, ext. 212 jzick@babcox.com (805) 845-1400 dhemming@babcox.com (330) 670-1234, ext. 286
ADVERTISING SERVICES Advertising Services Amanda Wingerter
awingerter@babcox.com (330) 670-1234 ext. 223
CIRCULATION SERVICES Circulation Manager Pat Robinson Circulation Specialist Star Mackey
probinson@babcox.com (330) 670-1234, ext. 276 smackey@babcox.com (330) 670-1234, ext. 242 Official Publisher of the AIMExpo Show Daily and Show Directory
For show publications advertising information call Sean at 330-670-1234 , ext. 206.
AFTERMARKET MEDIA NETWORK Babcox Media Headquarters 3550 Embassy Parkway, Akron, OH 44333 (330) 670-1234 Fax (330) 670-0874 Babcox Media California 735 State St, Suite 409, Santa Barbara, CA 93101 (805) 845-1400 Fax (805) 324-6015 CORPORATE Bill Babcox, President Greg Cira, Vice President, Chief Financial Officer Jeff Stankard, Vice President Beth Scheetz, Controller Copyright 2014, Babcox Media, Inc.
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Inside the Industry Yamaha Follows Up Success of FZ-09, Introduces FZ-07
MotoGP is Changing More Than Just Its Tire Manufacturer
Last year Yamaha introduced the beginning of a new breed of motorcycles with the all-new FZ-09. So how do you follow up a first act as profound and game changing as the FZ-09? Introduce the allnew FZ-07.
Following Bridgestone’s announcement that it will be leaving MotoGP and that Michelin will fill the void in 2016, the Grand Prix Commission has now confirmed that in addition to the manufacturer change, regulation wheel size will be altered as well, increasing from the current 16.5-inches to 17inches. The new announcement adds another layer to the series rule modifications planned for 2016, which also includes a move to spec ECU hardware and software across the board. The Grand Prix Commission met on June 14 and made the following decisions: Technical Regulations effective 2016. Following the successful bid from Michelin to be the official MotoGP class tire supplier it was agreed, at the request of Michelin, that the rim size from 2016 will be 17”. This required a change to the regulations which currently specify an
Powered by a fuel-injected, 689cc liquid-cooled, parallel twin “Crossplane Concept” engine, mounted in a lightweight diamond-type high tensile steel frame, the FZ-07 delivers an ear-toear grin the first time you twist the throttle. The FZ-07 will be available in three colors – Liquid Graphite, Rapid Red, and Pearl White – and will retail for just $6990.
exclusive rim size of 16.5”. Postponement to implementation of a Technical Regulation. Current regulations require all wheels to be homologated with effect from 2015. In light of the regulation change above it was considered unfair to require teams to buy new, homologated wheels for 2015 and have to replace them with 17” wheels for 2016. The Commission agreed that the implementation of homologation requirements for the MotoGP class will be postponed until 2016. The requirement for wheels for Moto3 and Moto2 machines to be homologated from 2015 remains in place.
RE: BACKFIRE Getting Electrified Great overview on the EV motorbike market. I think you gave just enough information for the MPN reader/dealer to get a better idea of where things are heading with EV's today. The progress is on a fast track now that batteries are getting better and cheaper. The next two-three years will be very interesting to see how the everyday motorcycle rider embraces the technology. Now that Harley is in the game it might push Honda, Yamaha and others (even KTM) to develop more realistic and affordable bikes. – Sam Vanderhoof Solar Cowboyz Consulting
about this. It would be great to see MPN do an article on the topic of mergers. – Marty Wineland, Thunderbird Motorcycle, Wheat Ridge, Co.
MPN: From what we know, the deal has not closed yet, and we plan to do a follow-up story after that time. Mergers of this type are nothing new to the industry, but it is understandable that they can be cause for concern. We are told, however, that with J&P Cycles and Motorcycle Superstore as part of the “family,” Tucker really can’t compete on a direct sales front with its dealers. If anything, this will force TR to service its dealers better, not sell directly against them.
Yamaha Introduces the FZ-07 Tucker Rocky/MAG Merger (In response to the news article in the April issue of MPN about Tucker Rocky buying MAG). I own a motorcycle business in Colorado and spend $800,000 a year with Tucker, Drag and WPS. We buy from these companies and then they compete with us. I think all aftermarket shops should be up in arms 6 July 2014 | Motorcycle & Powersports News
Kudos Yamaha! You've done it again! – Mort Brkr (MPN website comment)
Editor’s note: We are doing our best to make MPN relevant to its readership. If there are industry issues that we should be addressing, please feel free to let us know. Please send your letters to bbaker@babcox.com. t
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Harley-Davidson Reveals First Electric Motorcycle Harley-Davidson has revealed its Project LiveWire – the first Harley-Davidson electric motorcycle. While not for sale, Project LiveWire is specifically designed for the purpose of getting insight into rider expectations of an electric Harley-Davidson motorcycle. The Project LiveWire Experience invites customers to test ride, provide feedback and learn more about the story of the motorcycle. A 2014 U.S. tour – kicking off with a journey down Route 66 – will visit more than 30 Harley-Davidson dealerships now through the end of the year. In 2015, the Project LiveWire Experience will continue in the U.S. and expand into Canada and Europe. “This builds on many recent reinvention successes for HarleyDavidson,” said Matt Levatich, president and chief operating officer, HarleyDavidson Motor Company. “In just the
last few years, we’ve broadened our reach to serve an increasingly diverse society, as well as reinvented our approach to product development and manufacturing. This has resulted in cutting-edge products and this reveal of Project LiveWire.” The bike offers a visceral riding experience with tire-shredding acceleration and an unmistakable new sound.
differentiate it from internal combustion and other electric motorcycles on the market.” Longer term plans for retail availability of Project LiveWire will be influenced by feedback from riders along the Project Livewire Experience tour. “Because electric vehicle technology is evolving rapidly, we are excited to learn more from riders through the Project LiveWire Experience to fully understand the definition of success in this market as the technology continues to evolve,” said Richer.
Motorcycle Icons Pierre Karsmakers and Tom White Elected to AMA Motorcycle HOF “The sound is a distinct part of the thrill,” said Mark-Hans Richer, senior vice president and chief marketing officer, Harley-Davidson Motor Company. “Think fighter jet on an aircraft carrier. Project LiveWire’s unique sound was designed to
Pierre Karsmakers, one of the first European motocross champions to bring his expertise to America, and Tom White, acclaimed racer, White Brothers Cycle Specialties founder and a lifetime advocate of motorcycling, have both been elected to the AMA Motorcycle
MotorcyclePowersportsNews.com 7
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Inside the Industry Hall of Fame Class of 2014. A three-time motocross champion in his native Holland, Karsmakers came to the United States to gain wider exposure and attract the attention of the Japanese motorcycle makers. Racing for Yamaha in 1973, Karsmakers won the 500cc motocross national championship series, scoring 2,659 total points. Karsmakers also was the winner of the inaugural AMA Supercross Championship in 1974. He retired from racing in 1979. “It’s been a long time since I raced, so it means a lot that America still recognizes me as one who brought motocross to the United States,” Karsmakers said. Tom White first tasted motorcycling at the age of 15. By the time he was in his early 20s, White was ranked among the top 100 motorcycle racers in America, earning AMA National No. 80. Soon after, he founded White Brothers Cycle Specialties in 1975, which became one of the top off-road motorcycle accessory
companies in America. Today, White feeds his passion by racing motocross, as a race announcer, and as owner and curator of the Early Years of Motocross Museum in in Villa Park, Calif., which features 160 motorcycles and related displays. “There is no higher honor in motorcycling than being inducted into the AMA Motorcycle Hall of Fame,” White said. “This is special because it Karsmakers
White
comes from your peers in the industry and existing Hall of Famers. I am humbled to think that my heroes, these great people of the sport, believe that
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I’m worthy of this acknowledgement of my life and career.” The 2014 AMA Motorcycle Hall of Fame Induction Ceremony will be held on Friday, Oct. 17, as part of the AMA National Convention in Orlando, Fla.
Dominion and NPA Team Up to Boost Dealer Pre-Owned Profitability Dominion Powersports Solutions and National Powersport Auctions (NPA) are teaming up to provide unprecedented access to powersports market information that will boost dealer profitability on pre-owned units. The enhanced access to market data gives dealers using Dominion Powersports’ Traffic Log Pro lead manager/CRM system real-time access to NPA’s Value Guide, an online database that provides up-to-the-minute wholesale values on pre-owned powersports vehicles. With this step, Traffic Log Pro is ensuring a sales department has instant access to
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Inside theIndustry critical market data for a trade-in or used unit purchase. NPA’s partnership with Traffic Log Pro marks the first time this rich database will be available to dealers outside the nationwide auction provider. The feature, now available in Traffic Log Pro, comes at no additional expense to dealers. Traffic Log Pro is the industry’s only lead management/CRM company to provide this critical data. “By offering the NPA Value Guide through Traffic Log Pro during the tradein process, dealers are given a real-time snapshot of the wholesale market on more than 26,000 different models of powersport vehicles,” said Jim Woodruff, NPA’s chief operating officer. “With this new addition to TLP, dealers can better manage their pre-owned expenditures and accept trades they would historically turn away due to unfamiliarity with a vehicle model or its market value.” The NPA Value Guide provides a dealer’s sales department with critical
information about the actual wholesale value of a particular model by location, condition, time frame and mileage breakdown. A salesperson can give a customer an approximate value of their trade-in, enhance customer service and improve the speed and success rate of the sales process. “Providing dealers with instant, accurate information on wholesale values is incredibly important, and that’s why we’re so excited to partner with NPA to provide dealers this new level of access to pre-owned unit data,” said Paul Newman, general manager of Traffic Log Pro.
Namura Technologies Opens New Headquarters Namura Technologies Inc., a supplier of pistons and gaskets to MX and ATV riders, has a new world headquarters located in a suburb of St. Paul, MN. The new location more than doubles Namura’s current inventory capabilities.
10 July 2014 | Motorcycle & Powersports News
The 23,000 sq. ft. facility is located on five acres with ample room for a small test track and future expansion.
Motor Trike Announces Trike for Triumph Rocket III Touring Model Motor Trike, Inc. has announced the release of an all-new trike, which pairs its Independent Rear Suspension (IRS) with the world’s largest motorcycle production engine. The Triumph Rocket Trike features one of the biggest trunk door openings in the industry and utilizes the Triumph ignition key to make locking and unlocking a cinch. Stopping the Triumph Rocket Trike will not be a problem as Motor Trike uses their multi-piston calipers on each rear wheel.
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Inside the Industry The 2014 Triumph Rocket Trike will maintain the full Triumph factory warranty and can be ordered directly through your Triumph dealer. It features an all-new body design, which integrates many of the classic Triumph design cues from the original motorcycle, using both the taillights and turn signals. The Triumph Rocket Trike fits the 2014 Triumph Rocket III and is available for $27,999 (plus tax, title, license and freight). Units ordered through Triumph dealers will maintain the full Triumph factory 2-year warranty.
Fast Dates Calendar Celebrates 20 Years With Czech Republic SBK Grid Girls The FastDates.com Calendars and producer/photographer Jim Gianatsis have announced an agreement with SBK
World Superbike and the international model agencies PetrasAngles.com and UmbrellaGirlsUSA.com to bring beautiful Czech Republic SBK grid girls Jitka Pralinka and Petra Ruzinka to the United States this July to appear at the Mazda Raceway Laguna Seca United States SBK World Superbike and AMA National race
weekend July 11-13th, and the LA Calendar Motorcycle Show in Malibu on July 20th. It was 20 years ago in 1995 that SBK World Superbike first came to Laguna Seca, and Jim Gianatsis first provided the beautiful FastDates.com Calendar Kittens, who pose with top factory World Superbikes and serve as the official SBK grid and podium girls on race day. Jitka and Petra are professional supermodels who hail from Prague, and have been featured on SBK world TV race broadcasts and in the Fast Dates World Superbike Calendar the last three years. Fans will get to meet them in person, pose with them for professional pictures and purchase autographed copies of the new calendars at the LA Calendar Motorcycle Show. t
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By Robin Hartfiel
SHIFTING GEARS Printing All The News That Fits Aftermarket executive of the year, now a free agent! In a tersely worded statement from Paul Stroud, Triumph’s director of sales & marketing, Internet rumors were confirmed. “I write to advise you that Greg Heichelbech is no longer the CEO of Triumph Motorcycles America. I would like to take this opportunity to thank Greg for his leadership of the company and I wish him every future success. Looking forward we will continue to work to progress our business in line with the direction as outlined at our Dealer Conference. Reporting through to myself, Matt Sheahan will remain as COO, and Don Carleo as the CFO of our operations.” •••• Just in time for this issue’s look at UTV accessories, STI Tire & Wheel announced the launch of its revamped website. Led by bolder product photos and easy-tonavigate categories, the new site is said to give visitors a more detailed presentation of the features and benefits. “Our original website helped us deliver a wide range of news and information covering a smaller product mix,” said STI’s Jamie Chisholm. “The new site is designed to further promote our growing catalog of tires and wheels for UTVs, ATVs and off-road motorcycles.” With two main drop-down categories for tires and wheels, the site includes complete sizing information, and visitors can also view and download tech info. The site is built on a responsive design that works as well on mobile devices and tablets as on desktop computers and laptops. The new site – www.stitireandwheel.com – also connects STI’s Facebook and Instagram pages. •••• Saddlemen is also sitting tall in the saddle with a new site. “We listened to our customers and redesigned our site to provide them with a better way to search
for the products they need,” explains Saddlemen CEO David Echert. “Now they have the freedom of browsing our site from their favorite mobile device or desktop computer, along with searching for products based on make, model and year.” The new Saddlemen site offers a number of enhancements, including improved navigation, drop down menu options and downloadable detailed instructions for any Saddlemen product. Visit www.saddlemen.com to experience the new site and to learn more about Saddlemen’s line of seats, luggage and accessories. •••• KTM North America, Inc. has hired Scott Buxton as North East Region area sales manager. A powersports industry veteran, Bruxton brings more than two decades of motorcycle parts, accessories and apparel experience to his position with KTM. He is also a motorcycle riding instructor and 23-year member of the New England Sports Committee. “I have always admired KTM for its off-road success and legendary history,” said Buxton. “I am looking forward to implementing a new vision and direction alongside my new colleagues in the KTM sales department – some of the most brand-focused and motivated people I have had the pleasure of working with.” Scott’s proven sales expertise at the dealership, distribution and OEM level, combined with his appetite for success, made him a clear choice for the KTM team, according to East Coast Regional Sales Manager Brooks Hamilton. •••• On the chain gang! Robbi Roberts is the new national sales manager for RK Excel America. A former motorcycle dealership owner in Indiana, Roberts raced motocross, supermoto and roadracing since 1972, earning an AMA
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CCS Championship in 2009. “We are honored to add such a skilled professional with the RK Excel America team,” said company President Frank Miyake. “Robbi is very familiar with dealership operations as he was himself an owner of a dealership for more than 10 years. Robbi’s passion for the motorcycle industry along with his real world dealer experience is exactly what RK Excel America needs to further develop and implement our future business plans.” •••• Running wide open with no brakes: California speedway racing legend Greg Hancock is now the Troy Lee Designs distributor for Sweden. “Our dads previously worked together, and Greg and I spent a lot of time together back then as kids,” said Troy Lee. “We have supported Greg throughout his speedway racing career and I’m proud to continue our relationship with him in the business world.” Hancock Distribution will offer the complete TLD Moto, Bike and Sportswear collections, as well as the entire Seven racewear collection. “This is an amazing and longawaited opportunity,” said Hancock. “I’ve known Troy since I was a kid, and have had a great passion for the TLD brand since the early days of its establishment. I look forward to a winning partnership with Troy Lee Designs while building the brand throughout Sweden.” Hancock Distribution is based in Älvsjö, Sweden. For more information, visit www.troyleedesigns.se and follow on Twitter @TLDSweden. t
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Recap
Pre-owned monthly
By Jim Woodruff
Holding the Line: The Month of May Showed Strong Demand
T
he powersports market has held strong this year as spring comes to a close. This time last year we saw the seasonal decline in Average Wholesale Price (AWP) begin in May across the majority of product categories, with an abrupt drop in all categories last June. Through May of this year only three out of the nine categories we measure have declined over the previous month. What is causing this relative stability? We believe several factors are at play. Perhaps the most significant is the late but temperate spring this year; some regions of the country have only been selling for a few weeks, but the appetite for product is strong. A secondary reason is the continuation of historically low default rates. Although auctions do not solely depend on repossessions for inventory, low defaults contribute to a less plentiful supply of wholesale product. The classic combination of stronger demand and suppressed supply, especially for off-road product, explains this year’s stronger pricing. We are pleased to see signs of stronger retail demand for our dealers and continue to expect a more gradual seasonal curve than previous years. By The Numbers May’s AWP pricing showed fluctuations in most categories vs. 2013. The AWP for the domestic cruiser category was the most consistent with average trends, with only a two percent decrease compared to 2013. Metric cruiser and sport AWP actually strengthened in May vs. April, opposite most year’s trends, likely due to fluctuations in product mix and dealers needing to restock after warmer spring weather sales. The AWP for all types of ATVs remained stronger in May over last year with a four percent increase, while MX vehicles stayed unusually strong due to limited supply at auction with an 11 percent increase. t
All data provided by National Powersport Auctions. For more information, please visit www.npauctions.com or call 888.292.5339.
14 July 2014 | Motorcycle & Powersports News
Data includes all live and online transactions from all four NPA locations. Closed OEM auction data is excluded.
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Accessorizing
the A
By Alisa Clickenger
A
dventure motorcycling is bigger than ever. Whether it’s local trail riders or those riders wanting to escape the shackles of civilization for a weekend or longer, getting off the beaten path on a motorcycle just keeps getting more and more popular. Because of the extreme variety of places one can ride a dual sport motorcycle, the potential for accessory sales is huge. What your dealership stocks and how your sales staff talk about it is your key to a better bottom line. Gear Up and Ride Rene Cormier, founder of Renedian Adventures, specializes in motorcycle tours of Africa. His experience is that the majority of riders arrive for his tours with almost entirely new gear. After all, it’s human nature: who wants to go on the trip of a lifetime with old, crunchy gear? You’re selling memories to them by convincing them to do big trips. And they will, on their own, make the connection, ‘This is the trip of a lifetime. Why am I going to go on this trip with old boots, old gear, and a leaky rain suit?’ “If you can convince riders to do bigger, more life-changing trips, the consumer will make that connection on their own,”
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says Cormier. “If the dealer can convince the riders to go on big rides, or organize larger trips themselves, the more time that these guys ride together on these events that are really quite special, maybe even trips of a lifetime, they will buy new gear.” It’s the best possible sell – a soft one. Your dealership is in a great position to inspire your customers to bucket-list adventures while at the same time selling more accessories. The reasons for riding are endless. Co-market a tour with a company such as Renedian Adventures to bring your customers on the adventure of a lifetime. Hire engaging speakers for evening slide shows to inspire your customers towards their own two-wheeled dreams. Screen movies in the non-riding season or on rainy days. Improve upon your shop’s merchandising by looping riding videos on your displays. BMW Motorcycles of Ventura County is building a solid customer base by offering great motorcycle rides. (See their profile in this month’s “Destination Dealership” article on page 24). There’s a reason why popular websites such as ADVrider.com, HorizonsUnlimited.com and others are so
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Adventure Rider heavily used. People want inspiration, or at least to hear how someone just like them was able to go on amazing rides. It’s a heroic opportunity for your dealership to make money and serve your customers well. Walk the Talk “If you really want to get into this, know your stuff,” says Wolfman Motorcycle Luggage founder Eric Hougen. Salespeople need to be experienced in this genre of riding. They need to have some experience with the equipment and have some of their own adventure stories. Is a product good because it’s good, or is it good because the marketing is telling everyone it is good? It’s easy for a dealership to stock whatever is popular, but in the long run
that’s not serving your customers as well as you can. “Dealer credibility is incredibly important,” says Grant Johnson, founder of HorizonsUnlimited.com. Sales staff needs to not only to have an interest in this type of riding, but also they have to do it themselves in order to be effective. That’s not to say that the entire dealership has to buy into the lifestyle, but you need staff dedicated to this type of riding so they can talk effectively to the customer. There’s no question that there’s a type of vanity in the adventure crowd. While ruggedness is the vogue, it also means that the accessories have to have both form and function. Your typical adventure customers are older, more established, have higher incomes, and chances are they’re already sold on something before they walk into your dealership.
Between the Internet forums, rider groups and magazines, most tend to know what they want, and already know the questions that they need to ask. An adventure riding salesperson will need to have experiences of their own to be able to back up alternate product recommendations, and hopefully the product knowledge to talk effectively with the customer. If what your sales staff says doesn’t match what your customers are reading online, chances are you’ll lose the sale. Jeremy LeBreton, president of AltRider, encourages dealers to take advantage of product sheets and informational literature from accessory manufacturers. Helping your sales staff learn more about how things are manufactured, why those specific
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materials are used to make products and how they are mounted will come fullcircle. It will help your staff in the overall sales process of selling motorcycles by their knowing more about design efficiencies and what can be done to maximize performance of the machines. Less is More While selecting adventure accessories to stock it pays to choose items that fit across the widest range of motorcycles possible. “Certain brands are very, very focused on these [adventure] bikes, and dealers only have a limited amount of shelf space so it pays for them to look for something that works across the board so they can have one set of gear,” says Michael Walshaw of BritKit, LLC, the US distributor for Kriega products. “There are a number of brands, Kriega included, that can pretty much suit any bike with the same amount of shelf space.” Grant Johnson spent many years traveling around the world on a motorcycle. He suggests that dealers
counsel their customers to keep their packing light, keep it simple and to not carry excessive amounts of stuff. “The customer who hears this from their dealer realizes later that the dealer was right, and then loves that dealer because he sold them the right thing,” says Johnson. Customers can pretty much get everything they need online. Why go to a dealer? Because of your expertise. Your shop is the only place where customers can attend packing seminars, touch, feel and play with the equipment they’ve read about online, and meet other travelers and “experts” that they can learn from in a fun, interactive environment. It’s the only place where they can get social fulfillment from picking the brains of other informed enthusiasts, and in their eyes your staff are “experts.” Make sure they are. Rene Cormier sums it up best. “A lot of riders are looking for someone they can turn to for informed decisions. They want advice based on real world experience. If the dealer can deliver
A Motorcycle Adventure of a Lifetime ‘Round the World motorcycle traveler and University of Gravel Roads author Rene Cormier now leads tours in Southern Africa. Partnering with adventure motorcycle dealers, he offers custom, co-branded motorcycle trip-of-a-lifetime motorcycle riders that are plug and play for dealers. For a dealership presentation on his motorcycle adventures or to inquire about private label tours, contact Rene at renedian@mac.com. Renedian Adventures Ltd Suite 305, 11020-99 Ave Edmonton, Alberta, Canada T5K 2M2 (780) 707-7363 www.Renedian.com
that, they will have a loyal customer for life.” t
Adventure/Touring Products A staple in the Maxxis lineup, the Maxxcross IT is known as a very longwearing intermediate motocross tire that performs exceptionally well in common intermediate to hardpack conditions. Its knob design offers precise steering for a wide variety of soil conditions. Maxxis International/USA www.maxxis.com
Firstgear Torrent waterproof luggage is made with strength and durability to withstand the rigors of on and off road use. They are precision cut and sonically welded to ensure optimal seam integrity. They come in multiple sizes and capacities and included webbing straps. Retail price: 70-liter $89.95, 40-liter $79.95, 25-liter $59.95. Firstgear/Distributed by Tucker Rocky www.firstgear-usa.com
The SleepRite camping cot sets up quick and is comfortable. Under 5 lbs., it is small enough to fit on a motorcycle. Set up is intuitive and simple, and when it’s time to hit the sack, this ultra light bed is wider, taller and longer than most other camping cots. Open: 78”x 30”x 6”; Closed:18”x 7.5”x 5.5”; Cot height: 6”; Weight: 4.95 lbs.; Weight capacity: 300 lbs. Retail price: $197.99. TravelChair Company www.TravelChair.com 18 July 2014 | Motorcycle & Powersports News
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Adventure/Touring Products A ’round-the-world contender, Giant Loop’s Siskiyou Panniers combine the convenience of hard panniers with all of Giant Loop’s performance advantages. This bag is rugged, rackless and lightweight. Secures to passenger footrest mounts and rides on rear rack and/or pillion seat, and you can still ride two-up. Mounts/dismounts in minutes and backed by a Limited Lifetime Warranty. Retail Price: $700. Giant Loop LLC www.GiantLoopMoto.com
The Ballistic Revolution jacket by Joe Rocket is highlighted by an 840D ballistic nylon reinforced RockTex 600 chassis and backed by CE approved armor (shoulders and elbows) plus removable highdensity spine pad. The Revolution also features stateof-the-art environmental protection with an integrated waterproof mid-liner, Cynix insulated full-sleeve liner, and a hi-capacity Variable Flow ventilation system, providing one of the widest riding climate ranges available. To ensure that all this protection stays in place are ridespecific tailoring and an integrated 10-point SureFit adjustment system. MSRP: $199.99; Sizes: Small - 3XLarge; Colors: Black/Black, Black/Grey, Black/Red, Black/Hi-Viz. Joe Rocket/Distributed by Sullivans Inc. www.joerocket.com
The Scottoiler eSystem motorcycle chain oiler increases the life of chains and sprockets by up to 7 times. It fits easily and quickly onto motorcycles and gives the user control over flow rate. Plus, it improves performance and significantly reduces the need for motorcycle chain maintenance. Retail price: $279.95 Scottoiler Distribution USA. LLC www.ScottoilerDistributionUSA
The AltRider Hemisphere Saddlebag offers a sizable capacity of 45 liters, compatible with most dual sport bikes. 1050D nylon construction and military grade stitching on all seams ensure long term abuse of riding specifically designed for durability. AltRider www.altrider.com
Heavy gauge stainless steel skid plate with integrated polyamid nylon rails that absorb impact, protect bolt heads and provide a sliding surface for overcoming obstacles. Available for the BMW F800GS, R1200GS and KTM 1190. Retail: $329 - $450 Touratech-USA www.touratech-usa.com
20 July 2014 | Motorcycle & Powersports News
Kriega bike pack motorcycle bags are durable, functional and adaptable. The Universal System enables quick and easy fitting / removal without modification or additional mounting equipment. These waterproof motorcycle bags are designed to fit all types of motorcycles. The new Overlander soft pannier systems provide the capacity of hard cases, plus offer the ALP quick-release mounting system. Kriega motorcycle hydration kits are designed to withstand extreme conditions, and have been used in countless off-road competitions such as the Dakar Rally and the Baja 500. Kriega US/Distributed by BritKit LLC www.kriega.us
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PWC UPDATE Gibbs Adds New Model and Appearance To Its 2014 Quadski Lineup T
he Gibbs Quadski, billed as the world’s first high-speed sports amphibian, gets a new front-end appearance and a Quadski XL model added to its lineup for 2014. Compared to the standard Quadski, the new Quadski XL offers seating for two, has 11.8 inches of additional wheelbase, is nearly a foot longer and offers increased storage capacity as well. The Quadski XL’s longer wheelbase delivers a smoother, more comfortable ride on land and greater stability on water. Under-seat storage includes additional space for a second helmet and safety gear, supplementing the storage bin and glove box already available on the single-seat Quadski. “The new Quadski XL expands the envelope of go-anywhere recreation with an even greater capacity for freedom, flexibility and fun,” notes Noel Lane, president and CEO of Gibbs Sports Amphibians. “Our dealers are excited about the addition of the XL to their high-speed amphibian line-up.” Both 2014 Quadski models have larger sponsons (stationary rudders) integrated into their hulls to provide added stability and help improve overall marine handling. In addition, the 2014 Quadski and Quadski XL each feature larger hoodmounted air scoops that boost engine cooling and overall performance, along with new, more resilient front bumper systems. Both models have durable, lightweight composite hulls; utilize patented water-jet technology, and are equipped with a 1.3-liter BMW Motorrad engine and transmission. The four-cylinder, water-cooled engine is considered the
lightest power plant in its segment and features electronic fuel injection, dual overhead camshafts and dry-sump lubrication. Producing 140 horsepower, the engine enables Quadski and Quadski XL to reach speeds of 45 mph on both land and water. “Our high-speed amphibians feature a unique retractable suspension system that provides a superb ride and nimble
The Gibbs Quadski currently is available at 23 dealerships throughout the U.S. (including 33 retail stores) and 14 international distributors. Built at a 54,000-square-foot assembly plant in Auburn Hills, Mich., the Quadski will carry a manufacturer’s suggested retail price of $41,125 for standard models and $47,650 for the all-new XL. The Quadski XL has an overall length
handling on land, and retracts in seconds after entering water,” Lane adds. “It’s a patented design that allows Quadski to transition between the two environments in less than five seconds. “Quadski attracted crowds at auto, boat and powersports shows throughout the U.S. last year. We expect to build on that success with the addition of our new Quadski XL – a two-seater that research indicates will be popular with an even greater number of prospective buyers. Our newest high-speed sports amphibians will go on sale at dealerships later this month.”
of 140.2 inches, compared to 128.3 inches for a standard Quadski. Its curb weight of 1,437 pounds is about 100 pounds heavier and its wheelbase of 82.3 inches is nearly a foot longer. “The Quadski is the result of millions of research dollars and years of development work in the U.S., the U.K. and New Zealand,” says Alan Gibbs, founder of Gibbs Technologies and Gibbs Sports Amphibians. “Quadski represents an entirely new form of transportation. It is the only sports amphibian of its kind in the world.” t
22 July 2014 | Motorcycle & Powersports News
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DESTINATION
Dealership Story by Alisa Clickenger
Community as a Way of Creating Sales BMW Motorcycles of Ventura County
F
rom the outside, BMW Motorcycles of Ventura County (BMWVC) looks like any other BMW dealership. Inside, however, the feeling is closer to a club house than a highly successful business geared towards selling motorcycles and accessories. This particular mojo works for them, and it works well; in 2012 they were one of seven dealerships to win the “BMW Dealer Excellence” award. There’s a coffee bar, a comfortable seating area and nicely lit cardboard cutouts of classic motorcycles. Flashy posters line the walls, yet these aren’t professional stunt riders performing remarkable feats with large bikes; they are enthusiastic and accomplished BMWVC customers. How does a dealership collect so many good riders? By crafting a good, loyal customer base and by building a strong riding community. Shortly after Gary and Nina Clark opened the dealership 10 years ago their team started planning, organizing and executing interesting and challenging group rides. The first was a Great Divide Ride in the summer of 2006, long before the route became as popular as it is today. Taking customers on adventures built excitement, a healthy riding population and brand fidelity for the
dealership. It also cemented BMWVC’s reputation as a rider’s dealership. Creating community has become BMWVC’s central business philosophy. “It was clear that the Ventura market had been underserved for quite some time. It was nearly three years without a local BMW dealer until we opened the shop in January 2005,” said Gary Clark. “We felt that there was a market to be served, and we wanted to bring the community of BMW Motorcycles to the riders of Ventura County.” BMWVC’s philosophy is simple: build camaraderie and trust with customers in order to gain loyalty and repeat business. Adapting to changing customer desires, after running the Great Divide Ride for four years, BMWVC now offers shorter adventures, and there is some type of group ride offered almost every weekend. Generally, the first Saturday of the month is a street ride with a “Gear Up
24 July 2014 | Motorcycle & Powersports News
Getaway” campout, with a small amount of dirt roads. The second Saturday of the month is often an intermediate to advanced dual sport ride, at times with an “easier” route to encourage newer riders to come along. The third Saturday of the month is a street ride, this one is usually led by BMWVC customer Don Hobson. As well as his monthly rides, once a year Hobson also leads an extended weekend trip for those who want to take on a larger group adventure. Hobson isn’t the only one leading longer rides – the dealership also offers many other three to four day rides
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BMW Motorcycles of Ventura County 830 Tourmaline Dr Newbury Park, CA 91320 (805) 499-3770
throughout California, led by BMWVC staff or other customers. “We work hard to get people involved,” said BMWVC General Manager Michael Spencer. “We’ve built a community of enthusiastic people who like to ride together.” Spencer himself leads a semiannual beginner’s dirt ride called the “Ground Breakers” trip. The group riding is what Spencer credits for their terrific growth. In 2013 BMWVC was BMW’s 21st ranked dealership in new bike sales volume, and this is in spite of their relatively small market. Building loyal customers has served them well: when BMW Motorrad sent its dealers a challenge to bring riders to a publicity event at RawHyde Adventures, BMWVC and its customers answered the call. While other dealers from larger metropolitan areas showed up with a handful of customers each, BMWVC had so many riders they had to organize themselves into three separate riding groups. Among the innovative ideas at the dealership are its ‘Venture Riders’ program and ‘GS Venture Challenge.’ The Venture Riders are a group of
customer-riders turned product advocates. These riders enjoy the rider cohesion at the dealership and want to give back to the community by leading rides and mentoring other riders. BMWVC, in turn, supports its Venture Riders through discounts and other worthwhile perks. Customer and Venture Rider Neil Reynolds called the dealership one of the most proactive dealerships in the country. “This is a personal kind of place,” said Reynolds. “I’ve been riding for 50 years and this is a great place for motorcycling and a sense of community. It’s about friendships as well as riding.” True enough. Reynolds’ wife had just conspired with BMWVC to hold Reynolds’ surprise birthday party at the dealership. BMWVC’s GS Venture Challenge customers pay a $75 registration fee, for which they receive their own number flag, a special shirt and club-exclusive deals. Challenge riders also receive free tire changes up to four times per year between their street and dual sport tires, in addition to free tire storage. Joining the Challenge
also nets customers a wider area of free pickup for bike service at the dealership. Subscribers then participate in a number of special rides, for which they earn credits towards a highly coveted jacket. While the program did take staff time, energy and organization, it cost the dealership very little in terms of capital outlay. What it did, however, was generously help the dealership with its bottom line. BMWVC saw a 31 percent increase in parts and accessories sales over the previous year. “I’m sure a small part of that had to do with the increasing economy, but I know a couple of new motorcycle sales were a direct result of the GS Venture Challenge,” said Spencer. Another way that BMWVC attracts business is by being brand-inclusive. Anyone can join the club and ride with them, and BMWVC will perform service on all makes and models of motorcycles. Led by a BMW Master Technician, many of BMWVC’s technicians have service certifications for other brands. Even in the land of perpetual sunshine some rain does fall, and BMWVC turns those days to their advantage as well. They pull down the large overhead screen and loop the classic motorcycle movie On Any Sunday throughout the day. And who better than Malcolm Smith, Mert Lawwil and Steve McQueen to help sell motorcycles? t
MotorcyclePowersportsNews.com 25
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ADP Lightspeed Dealer Management Solutions are designed to help manage dealer operations by tracking and storing data from every department and delivering information that will assist dealerships in making successful business decisions. Every night, more than 1,800 Lightspeed powersports dealers automatically transmit their information to a collective database held at the ADP Lightspeed offices in Salt Lake City, Utah. Summaries and aggregated reports are available to dealers for both current tracking and historical research. This helps dealers know how their dealership is performing compared to other dealers across the country. Parts and major unit inventory information is gathered and used in the highly successful Lightspeed Dealership Locator program. This program is designed for dealers to post obsolete inventory, allowing other dealers from across the country to locate hard-to-find parts and units. ADP Lightspeed stands ready to work with all parties to move the industry to new levels of understanding, and ultimately to more efficient and profitable operations. For questions regarding this report or to inquire about a custom report, please contact Lightspeed Data Services at (800) 521-0309.
Powersports Dealer New Units in Stock
June 2014 1,870 Lightspeed Dealers, Distribution of Units by Type and Model Year Prior to 2013 Model Year
2014 Model Year
9%
18% 73% ATV 12% 21% 67% Off-Road Motorcycle 11% 25% 64% On-Road Motorcycle 15% 34% 51% Scooter 12% 18% 70% Snowmobile 4% 10% 85%
www.adplightspeed.com
Utility Vehicle
26 July 2014 | Motorcycle & Powersports News
2013 Model Year
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OEMs Yamaha
By Robin Hartfiel
I V g n i k i V h Wit g i B s e o G ha
Yama
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W
hen Yamaha first rolled out the Rhino back in 2004, it revolutionized the industry. A decade later, Yamaha Outdoors is doing it again with the introduction of the 2015 Viking VI six-person Side-by-Side (SxS). Since everything is bigger in Texas, the hill country outside of Austin was the perfect place to give select dealers and the media a sneak peek at another category creating machine. Initial feedback from the media and dealers alike would indicate that bigger just might be better when it comes to serving the SxS market. First a little bit of backstory on the market positioning. Although there were some utility vehicle Side-by-Sides on the market at that time, the Rhino made everyone rethink the notion of what a SxS vehicle could be. Instead of a workhorse, the Rhino added a recreational component from their ATVs at the time (they even called the Rhino “the world’s largest ATV” at the press launch and introduced the concept of a “sporty” SxS). Fast-forward to last summer. Yamaha introduced the three-person Viking and targeted it at the largest segment of the SxS market – the multi-purpose, multi-passenger segment. Contrary to popular belief, utility models still make up the majority of the ATV and UTV sales. Given that the Grizzly 700 remains the best selling 650-799cc class Utility ATV, and building on its reputation for its durability and core technologies, it made sense to base the Rhino successor on the big Grizzly, including its class leading Electric Power Steering (EPS) system. Executives promised that Yamaha would continue launching new models to cover all of the popular segments as part of the Viking introduction last year and the big VI definitely covers some key market segments! “There’s no doubt that Side-by-Sides are the growth segment in our industry,” says Steve Nessl, Yamaha ATV/SxS group marketing manager. “We are tapping into that growth with the Viking VI. We expect to see it working ranches and hauling hunters from Texas to California, Oregon to Pennsylvania… and everywhere in between.” However, Nessl did indicate one of the reasons for launching the six-seater in Texas was because oil crews and large ranches need a vehicle that can comfortably and conveniently haul a crew of workers along a fence line or out to a remote oil rig. In fact, the dealers who did the best with the original Viking sales were concentrated in a corridor leading straight up from Texas through Oklahoma, Colorado, Kansas, Nebraska and Iowa. These successful Viking dealers were brought in right after journalists from the farming, ranching and hunting journals had put the Viking VI through its paces. While we generally leave the product testing to the consumer publications, we do have to say it really does seat six comfortably. The middle seats are reclined five-degrees and mounted on a slightly different plane. This means three good-sized editors at
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OEMs Yamaha large (or in my case, maybe that should be XL) can sit without having their shoulders and elbows interfering with each other. The airlines should take note of what Yamaha has done with its three-wide seating arrangement. Creature comforts include eight cup holders, sealed storage containers under the front seats, two DC power outlets… and the ride itself. The extended wheelbase (115.6 inches) helps smooth out the ride, while 8.1 inches of wheel travel soak up the bumps. The long wheelbase makes the Viking VI look deceptively low-slung, however there is a substantial 11.4 inches of ground clearance… and a full length steel skid plate further improves what Yamaha calls
“terrainability.” Like the original Rhino, looks can be deceiving when it comes to offroading. The combination of EPS power steering, OnCommand 4WD and Yamaha’s proven Ultramatic automatic transmission makes operation intuitive and surprisingly capable. Despite the long wheel base, the Viking VI is relatively nimble on the trail. If you put it in 4WD, the front wheels actually help pull the machine through
the turns. Journalists and dealers alike were even encouraged to take the standard Viking out for a direct comparison to the six seater and there really was no spot on the trail that bigger version felt ungainly. The Ultramatic system means no jerky transitions and better yet, the sprag clutch engages for true engine braking when going downhill or decelerating. All play and no work, leaves the Viking VI out of a job. The Viking is even better as a workhorse, starting with its stamped steel dump bed. Unlike the thermoplastic beds found on some UTVs, the steel bed is designed for serious work. Eliminating the wheel wells means there is a true 14 cubic feet of storage 30 July 2014 | Motorcycle & Powersports News
space and the bed is rated to haul 600 pounds of gear. It features four standard tie-down hooks to help make sure cargo stays securely strapped in place and it can accommodate a standard pallet. Speaking of work, a standard two-inch receiver hitch means the Viking VI can tow an additional 1,500 pounds. Work or recreation, the Viking VI is competent off-road, capable of carrying six, confidence inspiring to drive and in short, has the potential to create a cult following for an entirely new category of Side-by-Side. Hopefully for Yamaha dealers, history will repeat itself and we will see high watermark sales surpass the Rhino back in its glory days. t (See Yamaha Sidebar on page 45)
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UT V
Accessories
Stop & Go Tire Plugger The Stop & Go Tire Plugger allows for an “on the spot” and “on the wheel” repair to virtually any tubeless tire. It seals the puncture on the inside. The Plugger is a spring-loaded gun that drives the plug into the hole. The shaft of the plug expands under pressure to fill the puncture. The mushroom head of the plug seats on the inner wall allowing no air to escape. This ensures maximum reliability from its revolutionary design. And it's easily stored - so you're always prepared. The vinyl zippered pouch measures 6" x 9" x 1" and weighs just under two lbs. Included is: the plug gun, nozzle, probe tool, reamer/rasp tool, retractable blade, 25 rubber mushroom plugs, and detailed instructions. ------------
Retail Price: $44.95 For More Info: www.stopngo.com.
It’s no longer a secret that the UTV / Side-by-Side market has been growing over the past couple years. In fact, the use of UTVs has grown dramatically over the past 10 years, making UTVs one of the most popular segments in the powersports industry. That growth means that more people will be looking to accessorize their UTVs whether they use them for sports, multipurpose or utility reasons. Did you know that 82 percent of UTV owners purchase accessories? Or that the average UTV owner spends about $1,700 outfitting their UTV? From better quality seats and doors to a variety of roofs, grilles and exhausts, consumers are looking to add accessories to their UTVs. So, do you know what the hottest UTV accessories are? In this month’s UTV Product Focus we identify some of the accessories your customers might be looking to add to their rides.
Quadrivator 70” UTV/ATV Tandems Disc If you are looking at planting food plots, the Quadivator 70” UTV/ATV tandems disc is an implement that should not be overlooked. Weighing in at over 600 lbs. (with weight kit) this is not a toy. That’s over 100 lbs. per foot of down pressure. The Quadrivator is capable of busting grass areas, while also having the control of covering small seeds at the shallow depth needed. The four disc gangs each have five notched blades that can be adjusted to change the cutting angle with the pull of a pin. It takes an ATV or UTV of 700cc to pull. ------------
For More Info: www.Quadivator.com.
Two Brothers Racing Polaris RZR 1000 Exhaust A machine as exciting as the Polaris RZR1000 deserves to squeeze out every bit of power when the pedal hits the floor, and the Dual S1R stainless steel slip-on exhaust system from Two Brothers Racing will have your customers feeling every part of the powerband. Through extensive testing and racing developments, TBR has produced top-level performance that you will instantly notice with evident horsepower gains. As with all TBR S1R off-road stainless exhaust systems, a removable U.S. Forestry Service approved spark arrestor is included to keep your riding areas safe, without sacrificing any horsepower in the process. Peak Horsepower: +2.45 to 68.4 hp / Peak Torque: +.23 to 41.63 ft.-lbs. ------------
MSRP: $699.98 For More Info: www.twobros.com. 32 July 2014 | Motorcycle & Powersports News
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DragonFire Adjustable HighBack Seats for RZR XP 1000 Both DragonFire's original GT and new XL series of HighBack seats upgrade the factory XP 1000 seats without compromising the OEM slider/adjustment capabilities. These seats keep the adjustment lever tucked up out of the way compared to the highly vulnerable stock location. DragonFire also shaved the bolsters back to accommodate larger waistlines and the lowered design makes for more legroom. HighBacks bolt directly to the OEM base plate, making installation a snap.
All Rite Products X-Handle Model XH1 The X-Handle is a unique utility grab handle that is attached at only one spot on a railing or bar. The X-Handle can be rotated 360 degrees for a custom, comfortable fit. The Master Block mounting system has patented micro grooves to prevent slipping and can be positioned at any point around any bar or rail up to 1-3/4" in diameter. The X-Handle comes with all hardware required to mount on either UTVs or ATVs. ------------
MSRP: $14.95 For More Info: www.allriteproducts.com
------------
HighBack GT Seats: $499.99 / HighBack XL Seats: $439.99 For More Info: www.dragonfireracing.com
Moose Racing Polaris Ranger 900 XP Roof The Moose Racing Polaris Ranger 900 XP Roof fits on full size Ranger 900 models from '13 – '14. It features a two-piece design made from durable polyethylene with UV stabilizers. The roof incorporates a molded water run off area. Installation size is 63.5 inches wide by 35 inches long by 5.25 inches high. ------------
MSRP: $192.95 For More Info: www.mooseracing.com
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DragonFire HiBoy Doors
Accessories
DragonFire introduces its popular HiBoy doors for the Can-Am Maverick and Commander. These are not your typical fab-shop doors with a simple aluminum skin roughly cut out to fit the frame. Instead, DragonFire doors have been specifically engineered and laser cut for a precision fit. All panels are backed by frame braces for strength and added durability. Aesthetically, the custom bends match to OEM lines. DragonFire goes one step further by integrating its automotive-style 'Locked & Secured' slamshut latch setup and incorporating built-in limiting straps. DragonFire doors also feature a stylish black powdercoated finish for anti-corrosion purposes. The HiBoy doors are easily removed with upper lock-down hinges, rubberized backing and delrin striker pin bushings for reduced trail noise and solid frame-anchored mounting points with built in adjustments. HiBoy doors fit all two-seat Can-Am Maverick 1000, Commander 1000 & 800 models ------------
For More Info: www.dragonfireracing.com
DEI Flexible Titanium Pipe Shield DEI now offers a better form of protection from searing exhaust heat; a flexible heat shield solution. This enhanced performance starts by joining two durable materials together forming a dual-layer design. The outer layer is made from pulverized and stranded lava rock (basalt) made into a proprietary tightly woven weave for durability and strength. The inside material is a special high temperature resistant fabric (89 percent silica) designed to withstand 350 degrees F more than glass fiber. The result is a product with unmatched thermal performance good up to 1,350 degrees F. This proprietary fiber technology combined with DEI’s unique shield standoff bracket design provides an air gap between the shield and pipe that together provides the maximum potential for cooling and heat dissipation. In addition to protecting legs and boots, Titanium Pipe Shields act as a barrier between the exhaust and plastic bodywork, suspension components, or electrical harnesses. ------------
For More Info: www.designengineering.com
T-Rex Grilles X-Metal and Torch Series Grilles T-REX Grilles has announced five all-new part numbers for the 2014 Polaris RZR XP1000. Both the TREX Grilles iconic X-Metal series and Torch series high power LED lighted grilles add the perfect blend of strength, performance and style to the new UTV. The T-REX Grilles X-Metal series grilles are available in polished or black finishes while the Torch series is available in a dynamic matte black powder coat finish and includes the mounted 6� LED light bar. All grilles styles for the XP1000 feature T-Rex's top of the line X-Metal studded perimeter with woven mesh giving the RZR a mean look. All T-REX Grilles are backed by T-REX Products' industry leading Limited Lifetime Structural Warranty and 3-Year Limited Finish Warranty. ------------
For More Info: www.trexbillet.com
34 July 2014 | Motorcycle & Powersports News
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Cleaners & Polishes Riders today are focused on taking better care of their bikes. With more and more custom work being done and people becoming more concerned about return on investment, keeping your machine clean both mechanically and aesthetically only helps accomplish that. To keep customer’s rides looking like new, cleaners and polishes are where they need to turn. Just as with any technology where speed, function, durability and aesthetics constantly improve year after year, manufacturers of cleaners and polishes for the powersports industry are focused on much of the same. The advancements found in this “liquid science” are focused on creating cleaners and polishes that are more capable, more durable and work on a variety of applications. Stronger chemicals and tougher waxes promise to improve upon cleaning products of the past to keep customer’s bikes clear of residues and dirt buildups, and keep them shining longer. Cleaners and polishes today work on multiple surfaces, giving customers increased function and a bike that all-around looks better. In this month’s Cleaners and Polishes Product Focus we highlight several of the industry’s top shine creators.
Wizards Products All Wheel & Tire Cleaner Wizards Products has developed another innovative product to brighten your ride. Wizards' new All Wheel & Tire Cleaner is a perfect addition to round out your customer’s detailing bucket. This product safely removes stubborn road grime, brake dust and general scum without staining or etching wheels. Safe on factory as well as custom wheels – polished aluminum, roughcast, uncoated, anodized, chrome, clear coated and PVD. Wizards guarantees outstanding results on black walls, whitewalls and raised white letter tires as well. Wizards All Wheel & Tire Cleaner is non-acidic, non-caustic and biodegradable. All Wizards Products are VOC compliant and made in the USA. Wizards All Wheel & Tire Cleaner is available in 22 oz. and gallon sizes. ------------
For More Info: www.WizardsProducts.com.
BritKit V2 Visor Cleaner Sponge The Visorvision V2 Sponge is unlike other cleaners. The V-shaped sponge does not rely on potentially damaging chemicals. Moistening it with a small splash of water before a ride is all that’s required. Packing the latest developments in micro-cell material technology, the reusable cleaner glides over smooth surfaces, while microscopic fibers slice into dirt and bug remnants, effortlessly lifting them away. A wipe with one of the supplied lint-free cloths ensures a smear-free, optically clear surface. Cleaning power is further accelerated by the unique slash-cut leading edges, which take inspiration from the sweep of a jet plane wing, to deliver seven percent more effectiveness than a square sponge of similar size. This also makes the sponge easy to grip when in use, and simple to slip back into the supplied watertight ‘Pocketpack’ for stashing just about anywhere. Under normal conditions, a V2 Sponge will handle approximately 12 cleans (but often many more) and can be purchases individually for $6.99, with savings on packs of three, six or 12. ------------
Retail Price $6.99 For More Info: www.visorvisionusa.com
36 July 2014 | Motorcycle & Powersports News
37 Star Brite 7/8/14 1:33 PM Page 37
36-41 Cleaners_Polishes_Layout 1 7/8/14 1:37 PM Page 38
Wizards Products Mystic Spray Wax Wizards’ Mystic Spray Wax combines recently developed nano-technology with the brand’s proprietary synthetic formula to raise the bar and take detailing products far beyond outdated carnauba waxes, according to the company. Developed to be more compatible with today’s advanced clearcoats, Mystic Spray Wax performs excellent on all paint types providing an instant bond with incredible gloss and depth after application and sustained water beading and slickness wash after wash. This easy application spray eliminates hazing and white filmy residues. It can be used on any hard surfaces including glass, chrome, polycarbonate, fiberglass, gel-coat, plastics and rubber trim to safely removes dust, bugs, bird droppings, road grime, oily fingerprints and light water spotting. ------------
For More Info: www.WizardsProducts.com
Maxima SC1 Clear Coat SC1 Clear Coat is formulated for the racing industry. SC1 conditions and polishes plastic, fiberglass and painted surfaces. Makes the clean-up process easier. It is excellent for use as a clear coat, on inside fender wells and along bodywork to prevent mud, dirt and rubber from adhering to the body panels. SC1 repels water and leaves a long lasting luster. Buff SC1 for outstanding shine without attracting dirt and dust. Available in 12oz cans. ------------
Retail Price $10.50 For More Info: www.maximausa.com
Bike Brite's Windscreen Rain Coating Bike Brite's windscreen rain coating is especially formulated for motorcycles. Bike Brite's rain coating can be used on windscreens, helmet visors, riding glasses, and goggles. The windscreen rain coating makes beads of water disappear on windscreens or face shields. It gives improved vision in the rain, drizzle or misting conditions and increases reaction time by allowing a clear view through the windscreen that would be normally obstructed by rain. No peaking around the windscreen or looking over the top in order to see ahead. Exceptional for touring bikes with windscreens. Add to touring bike rides as a safety item. Safe on windscreens made of Plexi-Glass, Lexan, Polycarbonate, and Acrylic. ------------
Retail Price $8.99 For More Info: www.bikebrite.com 38 July 2014 | Motorcycle & Powersports News
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Silkolene Pro-Prep2 Silkolene's Pro-Prep2 is a high-quality, hard surface coating especially formulated for motorcycles, ATVs, UTVs as well as multi usage on cars and trucks. Pro-Prep2 helps restore the color and finish of plastics and painted surfaces while leaving a clear film that makes subsequent cleaning much easier. Pro-Prep2 prevents metal corrosion and for off-road use inhibits the adhesion of dirt and mud. The new fine mist spray tip applies an elusive “factory finish” appearance and also ensures smooth operation of plastic moving parts. ProPrep2 also helps to waterproof and insulate ignition systems in wet conditions. Unlike most other silicone sprays, Pro-Prep2’s exclusive proprietary formulation only contains a limited amount of silicone so you have all the protection while avoiding that heavy greasy residue. ------------
MSRP $11.50 per 12.5 oz. can. For More Info: www.silkoleneUSA.com
Maxima Speed Wax Speed Wax is a specialized all-in-one detailer that conditions, shines and protects painted surfaces, chrome, anodizing, windscreens and plastic. An advanced formula blends conditioners with color enhancers to produce a brilliant shine. Easy application and removal – Speed Wax is designed to minimize effort and maximize shine and is the quickest way to detail your ride. Soothing wax sets up quickly and easily wipes from smooth surfaces. A single application is all it takes. Available in 15.5oz cans. ------------
Retail Price $10.50 For More Info: www.maximausa.com . MotorcyclePowersportsNews.com 39
36-41 Cleaners_Polishes_Layout 1 7/8/14 1:37 PM Page 40
MPN Product Spotlight:
Cleaners
ULTIMATE Bike Guard with PTEF Star brite’s Ultimate Bike Guard with PTEF® lets your customers detail and shine their bike in minutes while also adding a protective PTEF polymer barrier against damaging UV rays and grime to keep it looking good. Spray it on, let it dry to a haze then lightly buff to reveal a clean, shiny, “bike show quality” finish. Ideal for cleaning and enhancing the appearance of all stainless, chrome and painted surfaces, as well as plastic, rubber and leather. Simply spray on and wipe off to enhance the shine of painted surfaces and polished metals. The protective PTEF polymers bond to the surface to help repel dirt and UV damage. Star brite’s Ultimate Bike Guard is safe for all clearcoats, wraps and metalflake paints. It removes light road grime, bug debris, greasy fingerprints and more. Star brite ULTIMATE Matte Finish is a spray detailer/waterless cleaner formulated specifically for use on flat, matte, denim or other non-glossy finishes and surfaces. It won’t “clog” or otherwise affect non-shiny surfaces.
ULTIMATE Xtreme Clean Ultimate Xtreme Clean is the one product you can absolutely rely on to blast away the toughest, grimiest, nastiest bug bits, mud, grease stains, oily fingerprints and any other dirt or schmutz that finds its way onto the bike. The unique formula utilizes special chelating agents that break the bond between grime and the surface without the need for heavy scrubbing. Xtreme Clean is safe for use on plastic, fiberglass, leather, vinyl, polished metals and painted surfaces. Simply spray it on, let it work in for about 30 seconds then wipe or rinse clean. ------------
For More Info: www.starbrite.com
Scottoiler FS365 Scottoiler FS365 protects the motorcycle from corrosion throughout the year making cleaning easier and reducing the effects of corrosion. FS365 is formulated using mild alkalis and chemical compounds known as pH buffers that reduce the acidic elements. FS365 is designed to be used all year round. Simply spray over your motorcycle after use. It's proven protection for paint, chrome and alloy. Most manufacturers plate their wheel spokes to slow down the rate of corrosion. However corrosion resistance of OEM wheel spokes is generally not good. FS365 is a favorite among European riders to keep hard to clean wheel spokes looking good and corrosion free. Available in 1-liter spray. ------------
For More Info: www.ScottoilerDistributionUSA.com. 40 July 2014 | Motorcycle & Powersports News
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Slipstreamer Windshield Cleaner Cycle Care Formula 22 Spray, Rinse and Ride The Spray, Rinse and Ride Formula 22 from Cycle Care provides a fast, safe and effective way to clean motorcycles. The spray, rinse and ride method of cleaning is very desirable among motorcycle riders and Cycle Care Formula 22 is just as safe as water. It will not strip polish, etch or stain aluminum and will not harm clear coat/paint, black powder-coat engine or leather accessories. Frequent cleaners may use the product effectively at 50/50 solution. Cycle Care Formula 22 is available in a 1 quart bottle with a suggested retail price of $16.95 or a 1 gallon bottle for $49.95. This product is made in the U.S.A. ------------
For More Info: www.dragspecialties.com
Slipstreamer's windshield cleaner restores, cleans and maintains optical clarity on all plastics. This rich cream is the best final for all plastic surfaces. Leaves an original, like-new shine and protective finish after each use. Excellent for the removal of bugs, tar, adhesives, etc. and it is safe to use on all OEM windshields. ------------
Retail Price $10.95 For More Info: www.slipstreamer.com
S100 Cycle Care Set The S100 Cycle Care Gift Set includes five top sellers including S100 Total Cycle Cleaner, S100 Detail+Wax, S100 Finish Restorer and S100 Corrosion Protectant; everything to make a valuable bike last longer and look better. There’s even the S100 Drying Towel for that surprise rain shower. It’s all packed in a beautiful acrylic organizer, too! Find this terrific set at your local dealer. ------------
For More Info: www.s100.com
MotorcyclePowersportsNews.com 41
42-43 Dealer Management 7/8/14 1:33 PM Page 42
Dealer MANAGEMENT SOLUTIONS
By CJ Pedler
The Absolutes of Parts Department Discounting Make it easy for the customer and your staff
D
eciding how much discounting should happen in the parts department is like trying to decide who’s going to win the next World Series. There are a dozen different possibilities and all of them sound somewhat reasonable in theory. So let’s stick to the absolutes: Regardless of whether we discount or how much we discount, we need to make it easy for the shopper to buy and easy for us to discern the price they paid. Easy buying and easy reporting of discounts should be our ultimate goals. Unfortunately, that’s not always the case. Certainly the buying part can be challenging. When’s the last time you walked into a store, selected something, took it to the register with a 20 percent coupon in hand, and then waited 10 minutes for the parts person to find somebody who could approve the coupon in their system? Why did you wait? It’s not uncommon for discounts to be approved only by the parts manager or the general manager. As it happened, the former was at lunch and the latter was on the phone. So you waited. And waited. This scenario wouldn’t happen in some of your dealerships because you let everybody in your parts department discount items. Everybody – including the gal who just started last week and the guy who treats discounts like candy at Halloween. This is precisely why some dealer
42 July 2014 | Motorcycle & Powersports News
management platforms are now letting dealerships customize an employee’s discount limit based on that employee. The guy who treats discounts like Halloween candy may be extremely popular with your customers, so we’ll allow him up to 10 percent discounting. We’ll still make it easy for the customer to buy – no waiting on the parts manager or general manager – but let’s reel in Mr. Scary Discounts Parts Guy. At the same time, allow the No. 2 person in the parts department greater leeway – perhaps discounts up to 15 percent – to ensure our best customers and riding group members are handled swiftly and accurately. More importantly, let’s ensure we can identify how much discounting has occurred at the parts counter. There are a number of us who only look at the parts department budget as a whole. If they’re meeting weekly or monthly profit goals, we bypass the closer inspection of the discounting level that’s occurring. Why stick our noses into something that’s working, right? Wrong! A goal should be obtainable but not viewed as an economic peak. You don’t reach the summit, then hope you can hang on. Keep climbing! Keeping a sharp eye on discounting will certainly help that ascent. The good news is there is now a dealer management platform called DX1 that allows you to set up discount
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reporting once, and then have it delivered to your in-box as often as you would like. Want to check out the extent of parts department discounting every week? No problem.
Our dealer friend failed to examine the level of discounting in the parts department, believing a prior discussion on discounting had solved what had been a problem. “I told these guys not to
hit $50,000 for a year. An expensive lesson, but an important one. Make it easy for your customers to buy, but make sure you’re constantly checking to see what they paid. t
“A goal should be obtainable but not viewed as an economic peak. You don’t reach the summit, then hope you can hang on. Keep climbing!” Daily? It will be in your in-box by closing time each and every day. Just don’t make the mistake a dealer friend of ours made and assume discounting is not happening. If you allow it, it will happen – and probably more than you think.
discount,” he told me. “Mind if we check to see if they’re following through?” I asked. We checked. Eighty percent of the parts department invoices had discounts. Eighty percent! That’s $2,500 in discounts in a few weeks’ time, and they were on pace to
CJ Pedler is director of customer support for Dominion Powersports Solutions, the provider of DX1, the industry’s only end-to-end business management platform. Pedler has spent more than 15 years setting up and providing training for dealer management systems. He can be reached at: cj.pedler@dominionpowersports.com.
MotorcyclePowersportsNews.com 43
44-45 Service Manager 7/8/14 1:46 PM Page 44
THE
Service
MANAGER
By C.R. Gittere
Mid-Summer Sizzle
How is your dealership cooking up more business?
I
t’s mid summer and depending on the region of the country you are in it’s too hot to ride or busier than ever because the temperature is just right for a Sunday rip. Either way, it’s always good to take a moment and reflect on ways to drum up more business in your department. We spent last week moving our offices from one end of town to the other so that gave me tons of time to listen to the local radio stations. I do not do this very often so it was interesting to hear advertisements from the local car dealers. The local Mercedes dealer was offering free car washes for life if you bought a new car. My guess is they have a couple of guys they pay minimum wage to wash cars after they service them to make sure they offer a premium experience. These same guys will wash your car if you bought it there even if you do not have a service performed. It probably takes 30 minutes to give a car a quick visual wash, which equates to $8 - $12. I often wondered why motorcycle dealers don’t offer this. If you think about it motorcycle dealers are a perfect fit for
something like this. Maybe it takes 30 - 45 minutes to wash a bike and you are paying someone around $11 per hour. By the time you pay benefits and the payroll tax you should be right about $10 to $11 to wash a bike. While you are spending $11 to wash a bike and build rapport with the customer there are a couple of things that could be done in the background to offset the cost. Try these five tips: 1. Run the VIN for safety recalls. 2. Teach the lot tech how to look for worn brake pads, leaky fork seals, worn tires, etc. This is a great way to find something that needs fixing. 3. Teach the lot tech how to record mileage in your contact management system. This could be used to schedule or suggest future service. 4. Have your lot tech or service advisor alert the parts department sales reps that there is someone in for a bike wash and identify the individual. This person has a 3040 minute wait, so your parts department should focus a little attention on them. 5. Copy number four and alert your unit sales team as well.
In the grand scope of things, if you wash a couple of bikes a week, it would not take that much to pay your overhead. Let’s look at the math; $11 per hour lot tech at 40 hours per week is $440 per week. We know that the lot tech will not spend a full 40 hours washing bikes and he can be used for other operations around the dealership. Maybe if things get really cooking he spends 40 percent of his time washing bikes. So if we leave benefits and payroll tax out of the equation, you would need the lot tech and parts department to clear $200 per week in gross profit upsells to pay for this. If the customers spend $200 in parts at 40 percent margin, that gives you $60. This leaves $140 in gross profit needed from labor. Now if that lot tech spent 40 percent of his time washing bikes based on a full week and washing one bike every 30 - 45 minutes, he should be able to wash 20 - 24 bikes per week. That seems really easy to me. If the lot tech washes 20 bikes per week and has a 5 percent closure rate on finding something that needs repair or service that is two extra bikes per week in for service. You should be able to clear at
44-45 Service Manager 7/8/14 1:46 PM Page 45
least one hour per bike on any service or repair. If your labor rate is $85 per hour that puts an extra $170 a week in labor sales. Now I am not sure if this will work for all departments in all market areas, but why not try it? Summer is a great time to hire a young kid with some mechanical skills who is home from college. You might even choose to get creative and put the bike washer on commission if he finds service or repair work that needs to be performed pay him part of the sale. However the numbers work or don’t work for your dealership, the main thing I am getting at is try to find a way to get the customer to come back in the door. The more you get the customer in the door with their unit the better chance you have at selling them something. That something might be an hour of labor, parts or maybe even a new unit. t
C.R. Gittere and the Service Manager Pro team specialize in service department efficiency, elevating customer service and increasing department profitability. His monthly column focuses on best practices and unique ways to get the most out of your service department. More information about Service Manager Pro can be found at www.servicemanagerpro.com.
Assembled in the USA Yamaha’s Viking line has Georgia on its mind
T
he first hint of something big came when Yamaha quietly phased out the Rhino and launched the 3-person Viking in 2014. “Yamaha will be announcing another new utility SxS model this summer, and is gearing up for more new product launches with an accelerated product plan,” was the follow-up message from Yamaha’s ATV/SxS group VP, Mike Martinez. “We will stay on the gas throughout 2015 and beyond.” Facilitating this aggressive product schedule is an expansion of its manufacturing operation in Newnan, Georgia. Originally a golf cart operation, the plant outside of Atlanta added watercraft production, ATVs and later SxS over the years. Now nearly all Yamaha’s personal watercraft and ATVs are manufactured in Georgia, as is the new Viking and Viking VI. “Having all of our production in Newnan continues to increase our efficiency and promote more coordination and collaboration with the factory so we can make adjustments and come up with new products that our customers want,” explains Martinez. “The company continues to invest in the Newnan factory to ensure production capability for the future and strengthen its commitment to the ‘Assembled in USA’ message.” While some of the engines and a few electronic components are still coming in from offshore, virtually everything else is made in Newnan. However, they are still legally obligated to say “assembled” rather than “made” in the USA – “Proudly built Real World Tough and assembled in Newnan, GA, USA” is the marketing
spin to get around the technicalities. More of the Viking is made in Georgia than anywhere else and now marketing and R&D will be done in Georgia as well. Part of this shift to Georgia – Martinez calls it an “alignment” – includes moving ATV/SxS marketing and R&D from Southern California to Newnan. By the time this issue goes to press, most of the personnel will already be calling Georgia home. “Yamaha is aligning its ATV and SxS vehicle product development and market operations more closely with its manufacturing facilities,” he explains. “The alignment will increase efficiency, coordination and collaboration, which will make it possible to support accelerated new product development and more vehicle launches.” So does that mean we will be seeing a race version of the Viking or a new sport ATV coming as a direct result of the alignment? “Yamaha will continue to give our customers and our dealer network exiting new product,” says Martinez… too cagey to commit to a sport machine of any type. It becomes a function of sales numbers. While utility vehicle sales dominate, high performance and sport machines have always been Yamaha’s lifeblood, especially on the ATV side. “We’ve said it for years – as the economy turns around, so will the sport ATV market,” says Martinez. “We’re already seeing that happening. Last year, sales of sport-oriented vehicles were up over the previous year, and Yamaha’s leadership position in this category has us well positioned to continue dominating sport ATV sales as the economy continues to improve.” Like Ray Charles sang, we will have Georgia on our mind through this alignment process. However, Martinez still won’t say when we will be invited to Newnan to see the new sport machines roll off the assembly line! t – by Robin Hartfiel
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BEST
Operators CLUB
By Steve Jones
May Sales Department Performance T
his article contains actual dealer data obtained from GSA's 20-group reporting system. 20-groups consist of dealers from non-competing markets who meet 3 times a year to share financial and best practice information. Their goal is to grow and improve their businesses profitably. In Chart 1, total store gross margins are still light for this group while the Top 5 and National Norm dealers are hitting the benchmark of 25 percent. That said, the group’s margin is much better than last year at this time. The National Norm represents the average for all the dealers in the 20-group. The contribution numbers are interesting. Overall, the group is getting about 40 percent of its gross profit from unit sales, which means the rest is coming from finance & insurance (F&I), parts & accessories (P&A) and service. The National Norm average is around 44 percent. One of the facts we know is that during a recession, dealers who have a higher percentage of their gross profit coming in from P&A and service, suffer less impact. This is because they can still pay the bills even when unit sales are down. Something to keep in mind – don’t spend all your time focused on selling units only. The Top 5 are making a lot of profit with preowned. If you doubt this, look at the preowned vs. new margins in the next set of numbers. Part 1 shows decent increases in unit sales for the group, but not so much for the National Norm dealers (Chart 2). In margins, it looks like this group has some discounters in new units and both they and the National Norm dealers are leaving money on the table in their preowned deals. I was just in a store with
CHART 1 GROUP NORM
TOP 5 DEALERS
$3.1 mil
$5.4 mil
$4.1 mil
Total Store Gross Margin Percentage
23.2%
28.5%
25.0%
Gross Margin Percentage for Prior Year
19.3%
26.0%
23.2%
Contribution to Total Store Gross Profit: New Sales
24.8%
26.3%
30.5%
Contribution to Total Store Gross Profit: Preowned Sales 14.4%
35.2%
13.8%
Total Store Stats for May 2014 Total Store Sales Year To Date
NATIONAL NORM
Door Swings: Percentage of Change from Previous Year
17.3%
*NA
11.2%
Cost Per Door Swing
$26.48
$50.49
$31.45
$39,519
$55,491
$56,723
Gross Profit Dollars per Employee Year To Date
CHART 2 GROUP NORM
TOP 5 DEALERS
NATIONAL NORM
New Units Sold Percent Change from Previous Year
38.4%
*NA
16.5%
Preowned Units Sold Percent Change from PY
32.9%
*NA
11.0%
Total New Units Gross Margin Percentage
11.3%
15.1%
14.5%
Total Preowned-Units Gross Margin Percentage
19.4%
25.6%
19.3%
0.7%
*NA
-0.8%
1.7
2.8
2.6
New and Used Unit Sales (Part 1)
Change in Total Selling Margin Percentage from PY New Inventory Turn Preowned Inventory Turn Preowned to New Ratio
5.8
10.9
5.2
0.70
1.59
0.57
*Top 5 numbers are not included in percent change since they may represent different dealers each year
CHART 3 New and Used Unit Sales (Part 2) Sales Personnel Expenses Per Vehicle Sold Total Advance & Promotion Per Vehicle Sold Flooring Expens Per Vehicle Sold Average Customer-Facing Staff Year To Date Gross Profit Dollars Per Sales Dept. Employee
46 July 2014 | Motorcycle & Powersports News
GROUP NORM
$397
TOP 5 DEALERS
$188
NATIONAL NORM
$275
$51
$18
$105
$138
$52
$128
4.14
5.96
5.22
$60,660
$97,933
$88,363
Top 5 numbers are not included in percentage of change since they may represent different dealers each year.
46-47 BOC_July_Layout 1 7/8/14 1:46 PM Page 47
a 1.7 preowned-to new ratio. They are very aggressive about buying bikes from the local riders, car dealers and auctions and they hold over 25 percent gross margins on these units. This is a realworld example of how to make good money in unit sales. Turns are a critical measurement as well. You’ve got to buy the right product for your market and get it out the door quickly to hold down flooring and free up cash flow. In Part 2 we find that the group is paying the most to employees to get their units sold (Chart 3). The Top 5 are paying less, and getting more ROI for it. It would be interesting to explore the media each of these categories is using for promoting their businesses. The
National Norm dealers are spending far more per unit than the stingy Top 5 or even the group dealers. According to all the statistical evidence, most of the traditional media is not working well except in a few selected market areas. In general, local events, social media, websites and emails are having a far more positive return. Flooring costs are pretty high for the group and National Norm dealers, but keep in mind that many of the Top 5 dealers may pay cash for their inventory. They also turn it at a good rate. Both factors influence their flooring expenses. As usual, there is quite a difference in the productivity of the staff for these dealer groups. The Top 5 pull in
significantly more gross profit per employee. This indicates they probably have better quality salespeople and provide them with ongoing training. So where do you stand in comparison to these figures? t
Steve Jones, GSA senior projects manager, recaps critical measurements used by the leading 20-group dealers. Access to GSA’s Voyager 5 data analysis & comparison system is available for any dealership for a nominal fee. For more information on Voyager, management workshops, dealer 20-groups, on-site consulting or training, send an email to steve@gartsutton.com or visit www.gartsutton.com.
MotorcyclePowersportsNews.com 47
48-49 Product Essentials 7/8/14 1:45 PM Page 48
Gear Essentials Gear TAW Performance Marchesini Genesi Wheels TAW Performance, the exclusive importer for Marchesini wheels in North America, offers the company’s full range, including the popular Genesi, available in both aluminum and magnesium. The wheel is available for most European and Japanese sport bikes in three colors. Due to the FEM calculated design work the mangesium wheel will offer further weight reductions (around 10 percent) when compared to the current aluminum product range. The cush drive has been redesigned to use the MotoGP style round cush rubbers. ------------
For More Info: www.tawperformance.com
Willie & Max Leather Swingarm Bags New from Willie & Max, these compact Swingarm bags are constructed using 100 percent full-grain Brazilian leather shaped to accent the unique Softail or Sportster swingarm. They’re perfect for storing essentials when on the road while maintaining the uncluttered flow and style of the frame. The tough hand-sewn leather exterior gives them strength and makes them highly weather resistant. They’re engineered to withstand cold, heat and water for use in all road conditions. The new leather offering measures 10.5” x 11.5” x 4.5” with two fitments sizes: one for Harley Softails, Yamaha Road Star, Kawasaki Vulcan 900, Suzuki C50 and other similar models. The second fitment is designed for the Harley Sportster style or custom hard tail style bikes. Both fitments are offered with a matte black buckle or a chrome buckle. Installation is quick and easy with the added Speedwrap Hook and Loop ties provided with the bag. Willie & Max swingarm bags are made in Wisconsin and come with a Dowco limited warranty. ------------
Retail Price $149.99 For More Info: www.willieandmax.com
48 July 2014 | Motorcycle & Powersports News
48-49 Product Essentials 7/8/14 1:45 PM Page 49
Mustang Solo Seats For Yamaha Bolt Mustang's Spring Solo for the Yamaha Bolt gives you both an old-school look and 21st-century comfort. Supported by a pair of seat springs installed on a solid steel frame cover, they serve a functional purpose rather than being just a cosmetic afterthought. The solo has a highquality vinyl cover, marine-grade fiberglass baseplate, and Mustang's controlled density molded foam for maximum support and comfort. A matching underseat stash pouch is optionally available as well. A hinge at the nose of the seat makes accessing the storage pouch a snap. Although it looks old school cool, it still offers a reasonable amount of comfort. Priced at $199 US, the Solo Spring seat also has a retro price tag. Pouches priced at $29 and Solo Spring hardware is available for retrofit and custom build purposes for only $35. ------------
Retail Price $199.00 For More Info: www.mustangseats.com
Bell Bullitt A modern take on its classic full-face Bell Star design that dominated the motorsports landscape throughout the ‘70s, the new Bullitt conveys Bell’s history, while serving up a stylized contemporary helmet design. The Bullitt features an ultra low-profile fiber composite shell, a multi-density EPS liner and a removable, washable and anti-bacterial interior. The perforated micro-suede interior fabric has leather trim, and the padded chin strap with stainless steel D-Ring closure has a leather pull tab. The Bullitt has a three shell, three EPS system as well as five metal mesh intake vents with one rear exhaust vent. The 3D-cut cheek pads have speaker pockets and accessory shields are available to personalize the look. Bell offers a five-year warranty on the Bullitt, which is DOT certified. ------------
MSRP: $399.95 For More Info: www.BellHelmets.com MotorcyclePowersportsNews.com 49
50 F&I_July_Layout 1 7/8/14 1:44 PM Page 50
&
Finance Insurance
By Steve Dodds II
Five Keys to Finding Your Next Big Lender
S
ince the 2008 banking crisis, national lenders have changed and tightened their criteria for lending, which has left many dealers and customers in the lurch. One solution for dealing with this is to circumvent the big banks and establish relationships with local lenders. Community banks have a different business model than national banks, which engaged in risky business practices for years. Most community banks, credit unions and local lenders invest in the community by lending to local businesses; writing mortgages on local properties; and making personal and luxury vehicle loans – usually to account holders. Historically, local lenders have had tighter lending criteria than national lenders. That statement is not necessarily true now. So many loans went bad that many national lenders are taking no risks with the new loans they are writing. However, the local lenders who have not taken the same losses may choose to take more risks. In addition, you have a better chance to build relationships with community banks than you do with national banks, and that will help you get approvals for customers with marginal credit. So, how do you win a bank over? 1. Find a local source. When customers come in with a check from a local bank, make a note of the bank. See if the customer can refer you to a contact person and call them after the customer leaves. When you contact a bank, make sure you talk with the person who can make the decisions. 2. Create a lender presentation. Create a professional-looking booklet to give to bank representatives when you meet with them. You need to gather some facts about your customer demographic: average age, average credit score (that you have gotten financed in the past), average income,
percentage of male and female, average down payments, average loan amount – any customer statistics you can think of. Also, research and include percentage figures for your sales in street, dirt, water and snow vehicles. Include information about the programs you offer in your finance office. If you sell more than one brand, include what percentage of your business is in each brand. Include a dealership bio and some financial information about the dealership to show financial stability. For a sample booklet, e-mail steved@gartsutton.com and I’ll send you one. 3. Make an appointment and prepare. Call to make an appointment. Offer to meet for lunch or coffee. You can have them meet you at the dealership if they have never seen it, but never hold the meeting at your dealership or their office. You want to devote all your attention to them, and you want the same in return. Before the meeting, prepare a list of questions for your potential lender. 4. Have the meeting. Start off by going through your printed presentation and talking about the dealership. Be sure to answer all their questions as fully as possible. If you don’t know the answer, find out the answer and get back to him or her. Next, you want to ask your questions. Do you know about our maintenance program (be prepared to explain the benefits when you ask this)? What products will you let us add over and above the approval? Do you typically require a down payment? If so, how much? What is the turnaround time on your approvals? Are there some dollar amounts you can approve in the branch, and higher amounts that need to go to a central branch? What are your hours of operation? Will you let us have the loan signed at our dealership? After we contract a deal and send it to you,
50 July 2014 | Motorcycle & Powersports News
how long will it take to get it funded? What can we do to help the approval or funding process go more smoothly? Ask anything else you think is important. At the meeting, it is most important to be professional. The more professional and prepared you seem, the better your chances of acquiring them as a finance source. 5. Keep in touch after the meeting. Follow up with a card thanking your contact for their time. Continue to follow up with him or her by phone until you get a definite answer. If the answer is yes, you might have found a great source that will help sell a few more vehicles. Even if the answer is no, continue to follow up quarterly just to check in. Lending guidelines and personnel can change, and if they decide to start making loans on recreational vehicles, you want to be the dealership they think of first. This takes work. You will only get an appointment with one out of five or 10 of the banks and finance companies that you approach, and fewer than half of those will be willing to finance vehicles for you. I worked as a finance manager for 10 years. When I started devoting between one and two hours a week to finding new banks, I was amazed at the results. I followed this format, and my success was huge. You will never be a bigger hero to your sales staff, sales manager and general manager than when you find that new finance source that allows you to sell more bikes and helps you make more profit. Take the time to be that hero, and find more local banks. t Steve Dodds II is a moderator, trainer and consultant for Gart Sutton and Associates with experience in all sales and finance positions. If you have questions about what he can do to help you meet and exceed your goals, contact him at info@gartsutton.com.
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Yamaha Then and Now Yamaha’s Industry Outlook in 1982
Searching for products? Start Here The MPN Buyer’s Guide includes manufacturers and distributors in the
A
s Yamaha launches its Viking VI, we look back to 1982 when MPN featured an interview with Yamaha Motor Corp. USA’s then senior vice president of sales and marketing, Merle Karst. The interview covered Yamaha’s pursuit of Honda at the time as the No. 1 OEM in market share. Karst explained that Yamaha and Honda’s competition was healthy for
POWERSPORTS INDUSTRY. With more than
9,000 listings, we cover it all! Check out the MPN Buyer’s Guide Online and find manufacturers and distributors alphabetically or by product category in the most extensive searchable database in the industry.
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the market and created a sense of excitement. In 1982 Yamaha had its biggest marketing effort to date at that time. Despite that strong effort, Honda’s pockets seemed to be even deeper that year. Karst goes on to explain that while some of the company’s advertising spend was directed toward first-time buyers, a majority of it was thrust at the enthusiast. The topic of high-performance motorcycles was also brought up, to which Karst replied that the American mentality is looking for that excitement which highperformance offers. Lastly, Karst talks about how Yamaha goes about opening new dealers, by not responding to the market today, but by taking the temperature of how the market may eventually be. t 52 July 2014 | Motorcycle & Powersports News
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MarketPlace
TO ADVERTISE IN CLASSIFIED MARKETPLACE CALL Roberto Almenar 330-670-1234 ext. 233 ralmenar@babcox.com
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www.motorcyclepowersportsnews.com/resourcecenter.
Ad Index ADP Lightspeed . . . . . . . . . . . . . . . . . .27 ASA Electronics . . . . . . . . . . . . . . . . . .48 Competition Chemicals . . . . . . . . . . . .40 Deltran/Battery Tender . . . . . . . . . . . .35 Dominion Enterprises . . . . . . . . . . . . .43 EMGO International . . . . . . . . . . . . . . . .9 Fulmer Helmets . . . . . . . . . . . . . . . . . .10 Gibbs Technologies Inc. . . . . . . . . . . . .23 K & L Supply Co. . . . . . . . . . . . . .Cover 4 Kuryakyn . . . . . . . . . . . . . . . . . . . . . . . . .3 Marketplace Events/AIMExpo . . . . . .15 Mattracks, Inc . . . . . . . . . . . . . . . . . . . .34 MBA Insurance . . . . . . . . . . . . . . . . . . .47 Motor Trike . . . . . . . . . . . . . . . . . .Cover 3 MTA Distributing . . . . . . . . . . . . . . . . . .51 Mustang Motorcycle Products . . . . . . .8 Namura Technologies . . . . . . . . . .44, 45 National Powersport Auctions . . . . . .13 Red Line Synthetic Oil . . . . . . . . . . . . .11 Rizoma USA . . . . . . . . . . . . . . . . . . . . . . .7 SBS Friction . . . . . . . . . . . . . . . . . . . . .49 SEMA . . . . . . . . . . . . . . . . . . . . . . . . . . .31 Service Manager Pro . . . . . . . . . . . . . .52 Spectro Oils Of America . . . . . . . . . . . .38 Star brite . . . . . . . . . . . . . . . . . . . . . . . .37 Sullivans Inc/Joe Rocket . . . . . . . .19, 21 Vee Rubber America . . . . . . . . . . . . . . .5 Vega Helmet Corp . . . . . . . . . . . . . . . . . .1 VP Racing Fuels . . . . . . . . . . . . . .Cover 2 Wizards Products/RJ Star Inc . . . . . . .41 XY Powersports . . . . . . . . . . . . . . . . . .33 Yuasa Battery Inc . . . . . . . . . . . . . . . . .53 Zep Inc./Original Bike Spirits . . . . . . .39
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Kurt Caselli Foundation Fundraiser How better to honor the life of a desert racing champion than to go on a ride? The destination of Doffo Vineyards in Temecula’s wine country is a stone’s throw away from KTM and Husqvarna’s North American headquarters, just down the road from the Metal Mulisha compound and Glen Helen Raceway – in short, the moto epicenter of America. No stranger to the powersports industry, Doffo recently hosted KTM demo days with rides starting at the vineyard as well as having a Honda Gold Wing media event on site.
Guests were treated to a spectacular day, a great ride and a chance to see the collection of historic motorcycles that wine maker and Moto Giro d’Italia racer Marcello Doffo has gathered in his barrel room… and all for a worthy cause! A showing of the Caselli 66 Ride The Dream movie, guest speakers and an auction were among the other highlights drawing industry VIPs and Caselli fans alike. America’s first 500cc National Champ Mark Blackwell, former Dakar competitor Chris Blais, Team Geico Honda SX/motocross racer Zach Osborne, Red Bull KTM desert racer Ivan Ramirez and KTM North America president Jon-Erik Burleson were among the hundreds of industry types who turned out to support the cause. In fact, the entire management team from National Powersport Auctions rode all the way up from their Poway facility as well. With the simple goal of “protecting and supporting the lives of off-road riders” the
56 July 2014 | Motorcycle & Powersports News
Kurt Caselli Foundation was established in 2013, after the tragic passing of Factory KTM racer/Dakar Rally competitor and all-around American Legend. In Kurt’s honor, the foundation has a three-part mission that encompasses safety precautions for riders before, during and after a racing career. 1. Before racing, we are committed to encouraging, developing and standardizing safety precautions that will help minimize risk outside of the rider’s control. 2. During racing, we are committed to developing, establishing and encouraging the use of safety equipment and policies to increase the safety of the riders. 3. After racing, we are committed to providing a safety net that allows and encourages former racers to further their education and reach career goals for themselves and their families. To learn more about the foundation, visit www.kurtcaselli.com. t
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