u Destination Chicago Cycle u Xtremey Award Winners u Web Savvy Homepage Basics
July 2010 VOL.36 NO.7
www.motorcycleproductnews.com
Not A
Novelty
7 Top DOT Cruiser Lids
Ready To Wrench 2010’s Top Service Tools & Equipment uBattling The Bear: The Agony and the Ecstacy of Being Harley-Davidson
Black and Flat Black $74.95
GMAX leads the helmet industry with another innovative helmet. The GM55 half helmet has a retractable sun shield with a lightweight, small shell design that sits down on your head and the famous GMAX “no bull venting design.� All for a reasonable price!
s 2ETRACTABLE CHANGEABLE HARD COATED SUN SHIELD FEATURES A SIMPLE NO SPRINGS DESIGN s 0REMIUM VENTING REDUCES HEAT AT THE TOP OF THE HEAD #OOLMAX ÂŽ #OMFORT LINER SHELL AND STYRO DESIGNED FOR MAXIMUM VENTING WITHOUT REDUCING THE INTEGRITY OF THE HELMET s 2EMOVABLE WASHABLE COMFORT LINER s '-!8 PREMIUM l T FOR MAXIMUM COMFORT s )NCLUDED WITH REMOVABLE SNAP IN REAR NECK CURTAIN FOR COOL WEATHER RIDING s 0REMIUM SOFT MATERIALS USED FOR PADDED CHIN STRAP COVERING s $/4 APPROVED SHELL AND PREMIUM STYRO
Boise, ID / Fresno, CA / Memphis, TN Elizabethtown, PA / www.wps-inc.com
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Carbon, Derk and Skull $79.95
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TABLE OF
Contents
July 2010 Volume 36 Number 7 – – – – – – – – – – – – – – – – –
www.motorcycleproductnews.com
Shop Talk k How To Hackett
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34
Otis Encourages You To Do The Right Thing BY OTIS HACKETT
Best Operators Club . . . . . . . . . . . . . . . . . . . . . . . . . . 36 BOC Profitability Trends Upwards BY STEVE JONES
Peak Dealership Performance 38 Bring The Service Department Into Sales BY MARK RODGERS
Lessons Learned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 The Evolution Of Internet Sales Leads BY ROD STUCKEY Photos courtesy of Harley-Davidson
Practice What You Preach . . . . . . . . . . . 42
Being Harley-Davidson
12
New Venues For More Revenue BY WILLIAM DOUGLAS LITTLE
Web Savvy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Don’t Make Your Customers Think! BY PEGGY OLSON
Departments The Road Ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Spare Parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Destination Dealership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Chicago Cycle BY MICHAEL NEMLICH
Battling The Bear
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Essentials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-Twin Product. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marketplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ad Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12
The Agony & The Ecstacy of Being H-D BY LEE KLANCHER
Not A Novelty
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16
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2010 Cruiser Lid Roundup BY COLLEEN BROUSIL
Ready To Wrench
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24
Compare Your Shop to Other Dealers and Stock Up on the Newest Tools & Equipment
24
BY COLLEEN BROUSIL u Destination u Web Cycle Award D i ati atti atio a tion on Chicago Chi C Cy cle l u Xtremey X A d Winners Wi W b Savvy S H Homepage Basics B i
July 2010 VOL.36 NO.7
www.motorcycleproductnews.com
MPN (ISSN 0164-8349) is published monthly by Babcox Media, Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 6701234, 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. Visa, MasterCard or American Express accepted
Not A
Novelty
7 Top DOT Cruiser Lids
ON THE COVER
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Special thanks to WPS and Snake River Yamaha of Meridian, Idaho for making this cover shot snapped by Allen Picard Photography possible.
4 July 2010 www.motorcycleproductnews.com
46 48 50 50
Ready To Wrench 2010’s Top Service Tools & Equipment uBattling The Bear: The Agony and the Ecstacy of Being Harley-Davidson
follow MPN on
@MPNmag
E
Y
E
W
E
A
R
Functional &Durable Trident
MSRP - $69.95
FEATURES s #ONVERTS FROM 3UNGLASS TO Goggle s 'RILAMID 42 &RAME s 0OLARIZED ,ENS W (YDROPHOBIC #OATING
s 4HREE 3ETS OF ,ENSES s 2EMOVABLE 'OGGLE 3TRAP s 2EMOVABLE #LOSED #ELL &OAM s -ICROl BER #LOTH s #ARRY #ASE
703
703 WPS# 26-4864
Renegade
MSRP - $49.95
Hekler
FEATURES s #ONVERTS FROM 3UNGLASS TO Goggle s 0OLYCARBONATE &RAME s 0HOTOCHROMIC ,ENSES V.L.T. 88% - 34%
s 2EMOVABLE 'OGGLE 3TRAP s 2EMOVABLE #LOSED #ELL &OAM s -ICROl BER #LOTH s #ARRY #ASE
MSRP - $59.95
FEATURES s 0OLYCARBONATE &RAME s !NTI FOG 0HOTOCHROMIC ,ENSES V.L.T. 88% - 34%
s 2EMOVABLE .EOPRENE &OAM s -ICROl BER #LOTH s #ARRY #ASE
WPS# 26-4722
DZL
WPS# 26-4865
Rukus
MSRP - $49.95
FEATURES
MSRP - $59.95
FEATURES s 2EMOVABLE #LOSED #ELL &OAM s 0OLYCARBONATE &RAME s !NTI FOG 0HOTOCHROMIC ,ENSES s -ICROl BER #LOTH s #ARRY #ASE V.L.T. 88% - 34%
s 0OLYCARBONATE &RAME s .EOPRENE &OAM WITH &LEECE s -ICROl BER #ARRY 0OUCH
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Missouri Kentucky California
Memphis
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North Carolina
Tennessee Arizona
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BRINGING YOU THE BEST SERVICE, PRODUCT, DELIVERY! SEE THE NEW 2010 WPS STREET CATALOG OR CHECK OUT OUR WEB SITE AT WWW.WPS-INC.COM TO VIEW THE FULL BOBSTER® LINE!
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THE
RoadAHEAD
By Colleen Brousil
WORKING THE NUMBERS The power of research few weeks ago, J.D. Power and Associates unveiled the results of its 2010 U.S. Motorcycle Helmet Satisfaction Study, and for the 12th consecutive year, Arai took top honors with Shoei and Icon rounding out the top three. The study measures overall satisfaction using three key factors: ventilation, face shield and design/styling. Bottom line: the more satisfied a customer is with his helmet, the more likely he is to be brand loyal (see more survey results online at www.motor cycleproductnews.com). To extrapolate that out a bit, perhaps the more satisfied a rider is with a helmet, the more likely they are to strap one on in the first place! But what about those beanies that don’t sport face shields? When it comes to biker-oriented helmets, this month’s product focus starting on page 16 reminds us that not all lids are created equal. Helmets are not a novelty, and our roundup of open-faced helmets exclusively features DOT approved models. In addition, we point you to some pretty compelling research that is sure to convert some of your wind-in-the-hair types from snapping up the cheapest bucket possible. The ability of facts and figures to influence decisions is incredibly powerful, and I’m
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thrilled to announce that we’re sharing an excerpt from MPN’s inaugural Tools & Equipment study on page 25 of this issue. Wanna see how your service department stacks up to the national averages? Flip the page and find out! Our in-house research team led by fact guru Bob Roberts isn’t the only addition to MPN this month. We’re also introducing publisher Greg Cira, managing editor Brendan Baker, associate editor Hannah Schiffman and senior graphic designer Tammy House. Cira has been involved in the media and publishing business for the past 18 years with MPN’s parent company Babcox Media, where he has served and continues to serve as vice president, publisher and CFO. Cira has a B.S. in business administration with a major in accounting from Bowling Green State University. He is also a CPA and serves on the Financial Advisory Board of BPA International, Inc. (the audit bureau for business-tobusiness publishers). Baker’s background is mostly in racing and automotive with 13 years of publishing experience to back it up; he currently serves as the sernior editor on Engine Builder. Baker’s father owned an independent auto parts store that specialized in racing and foreign car
6 July 2010 www.motorcycleproductnews.com
Staff parts, and he grew up in the back room. Baker has worked for professional racing teams including an Indy Car team as a data acquisition assistant. He has built and raced his own cars for years. His motorcycling background includes motocross, and he currently owns a 1981 Suzuki GS550 that doesn’t run, which makes his wife happy (but not his editor!). He is an avid gokart racer and enjoys working on his nearly century-old home with his wife. Hannah Schiffman joined the Babcox Media team in June 2008 and also serves as the managing editor for BodyShop Business. Previously, she was a reporter at a small-town daily newspaper. Outside work, she likes to hit the golf course with her husband or tool around in one of the several antique cars her family has collected over the years. Her favorite is a 1914 Model T Ford because it’s the fastest, topping out at around 45 mph. She graduated from the University of Toledo in 2006 with a bachelor’s degree in English with a writing emphasis, and assures us she’s comfortable giving two wheels a go. Senior graphic designer Tammy House has been with Babcox for 28 years. House works with the SEMA Show Daily, Counterman, Fleet Equipment, BodyShop Business and now MPN. I’m so happy to welcome the new MPN team to our staff. Their diverse history brings so much to the table, and the additional hands on deck will help MPN deliver more robust, wellresearched content both in print and online with the launch of the new www.motorcycleproduct news.com this summer. t Colleen Brousil is the editor of Motorcycle Product News. Her monthly column, “The Road Ahead,” explores issues facing dealers across the country.
EDITORIAL Editor Colleen Brousil cbrousil@babcox.com Managing Editor Brendan Baker bbaker@babcox.com Associate Editor Hannah Schiffman hschiffman@babcox.com Columnists Otis Hackett, Steve Jones, William Douglas Little, Mark Rodgers, Rod Stuckey Contributors Lee Klancher, Michael Nemlich, Peggy Olson ART Senior Graphic Designer Tammy House Electronic Production Manager/ Graphic Designer Marjorie Schultz ONLINE Online Producers Erika Reise ADVERTISING SALES Associate Publisher Dean Kelly dkelly@babcox,.com (866) 616-1635 ext. 130 Publisher Greg Cira gcira@babcox.com List Rental Don Hemming dhemming@babcox.com Market Research Bob Roberts broberts@babcox.com PUBLISHED BY Babcox Media, Inc. 3550 Embassy Parkway Akron, Ohio 44333 Phone: (330) 670-1234 • Fax: (330) 670-0874
President & CEO Bill Babcox bbabcox@babcox.com Circulation Director Brad Mitchell bmitchell@babcox.com Controller Beth Scheetz bscheetz@babcox.com SUBSCRIPTION SERVICES Star Mackey, ext. 242 Sr. Circulation Specialist smackey@babcox.com
230 TOUR MASTER s $ESIGNED FOR LONG DISTANCE HIGH SPEED RIDING s !RAMID BELTED s 3TAGGERED TREAD DESIGN OFFERS A QUIET RIDE WITH EXCELLENT HANDLING s -OST SIZES 6 RATED TUBELESS PLY RATED
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777 CLASSIC s ( RATED TUBELESS OR PLY RATED s !RAMID BELTED NYLON BELTED s 3ELECT SIZES AVAILABLE IN WHITE WALL
North Dakota
Washington
Minnesota
Montana
UP Michigan Maine
Oregon
South Dakota
VT
Wisconsin
Boise
Michigan
Idaho
NH
Wyoming
New York
Mass.
Iowa Nebraska
Conn.
Pennsylvania
Elizabethtown
Nevada Illinois
Indiana
RI
Ohio
NJ
Utah MD
Colorado West Virginia
Kansas
Fresno
DEL DC Virginia
Missouri Kentucky California
Memphis
Oklahoma
North Carolina
Tennessee Arizona
Arkansas
New Mexico
Alabama
South Carolina
Miss. Georgia Louisiana Texas
Florida
Boise, ID / Fresno, CA / Memphis, TN Elizabethtown, PA / www.wps-inc.com
BRINGING YOU THE BEST SERVICE, PRODUCT, DELIVERY!
1-800-999-3388
Boise, ID / Fresno, CA / Memphis, TN Elizabethtown, PA / www.wps-inc.com
SPARE
Photo courtesy of www.fastdates.com
Parts
WANNA MEET THIS CALENDAR GIRL? Join Playboy Playmate Tamara Witmer (seen here on a Roland Sands Designs/Performance Machine Kenny Roberts 5-cylinder, 230hp MotoGP engine powered, retro board tracker) at this year’s LA Calendar Motorcycle Show at the Queen Mary Event Park in Long Beach, Calif. on July 18-19. In addition to meeting your favorite calendar kittens, spectators can meet top celebrity custom bike builders including last year’s Best of Show winner Kenji Negai, along with Russell Mitchell, Shinya Kimura, Ron Simms, Todd Silicato, Chris Fletchner and dozens more. They can attend free Calendar Bike Builder Seminars with the top Calendar builders to learn what it really takes to build some of the world’s most innovative and beautiful custom bikes as featured in the Iron & Lace and Fast Dates Calendars. Visit www.fastdates.com to see the full schedule of events. t
Rider Logs 2.5 Million Miles Bushtec Performance Sport Trailers is helping an 83-yearold surpass 2.5 million miles in the saddle with one of the company’s newly designed hitches. “Krazy” George Goland has won numerous awards and recognitions for his riding accomplishments. Of his journeys, 500,000 miles have been cruised while pulling his Bushtec trailer over a 10-year period. “You may not know Krazy George personally, but you’ve probably seen him riding for years at all
the motorcycle events on his signature purple Harley with his purple Bushtec trailer,” says Kirk Rush, Bushtec director of sales & marketing. “We are very proud to recognize George as one of our most loyal Bushtec customers and to help him achieve his next riding goal on a trike.”t
8 July 2010 www.motorcycleproductnews.com
The Award rd Goes To … Every year, Docy Andrews and the Impact Video crew roll out the red carpet for the annual Xtremey Awards. Qualifying videos for this year’s nominations were e titles that were released from Jan. 1, 2009 to Dec. 31, 2009. Nominees in 12 categories were selected from polling data collected throughout the year and finalized by a nominating committee. The nominees were placed on a popular vote ballot, and the voting was opened for any and all to participate. Mini Warriors, The Series took Best Kid Video; Slednecks 12 won Best Snowmobile Video; Twist of the Wrist #2 was awarded Best Instructional Video; Huevos 12 took Best Quad Video; Travis Pastrana accepted the award for Best MX Freestyle Performance; and On The Pipe 5 got the nod for the Best Freestyle MX video. To stock up on these award winners and see the full list of winners, point your browser to www.impactvideo.com. t
Personalized Pirellis Customer looking for that final custom touch? Hook him up with the new Diablo Rosso Corsa tires with sidewalls designed to accommodate adhesive labels that anyone can design on Pirelli’s website. Better yet, hop online and load in your dealership logo. To build your own customized kit containing six unique tire labels and all the material necessary to apply them, hit www.pirellityre.com/drc, where you’ll also find a wide selection of reproductions of the most prestigious Superbike World Championship circuits as well as logos, banners and letters in different colors. With a few clicks the mouse, you’ll be today’s top tire designer. t
ULTRA-COMFORTABLE HIGHWAY RIDE s %ASY STEERING PROl LE AND SUPPLE RAYON CASING PLIES PROVIDE SUPERIOR COMFORT AND PREDICTABLE HANDLING s #ENTER LONGITUDINAL TREAD LINE PREVENTS TRACKING TO ROAD GROOVES
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North Dakota
Washington
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Montana
UP Michigan Maine
Oregon
South Dakota
VT
Wisconsin
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NH
Wyoming
New York
Mass.
Iowa Nebraska
Conn.
Pennsylvania
Elizabethtown
Nevada Illinois
Indiana
RI
Ohio
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Utah MD
Colorado West Virginia
Kansas
Fresno
DEL DC Virginia
Missouri Kentucky California
Memphis
Oklahoma
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Alabama
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Miss. Georgia Louisiana Texas
Florida
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DESTINATION
Dealership – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –
By Michael Nemlich
WORKING THE WINDY CITY Chicago Cycle Expands Haehn’s Success hicago Cycle is the premier multi-brand super store located in the Chicago Metroplex. Shoppers are greeted by hundreds of vehicles spread across a welllit sales floor that stretches over an acre. Their stock encompasses five major brands: Honda, Yamaha, Suzuki, Kawasaki and Ducati. Chicago Cycle owners Russ and Greg Haehn also own Andrews Cycle in Athens, Ohio, where they have 35 years of experience operating a multi-brand store. With the four Japanese brands, plus Ducati and Polaris in 65,000 sq. ft., they have created a modern day shopping experience for their customers. Andrews Cycle was built on the philosophy of creating a complete onestop shopping experience for the motorcycle rider. The experience includes the opportunity to choose from multiple brands, a large inventory ready to ride off the floor, plus a large selection of helmets, jackets, boots and gloves to make sure people are properly outfitted,
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and a F&I department to help make it happen. Looking to grow, Russ and Greg identified several major metropolitan markets where there wasn’t a multibrand superstore. Looking in depth at the Chicago marketplace, they saw no motorcycle superstore other than a couple HarleyDavidson dealerships. In the spring of 2004, Russ and Greg purchased a dealer that had all five brands crowded in a small space (formerly a small supermarket) on Western Avenue in Chicago. They saw the opportunity to create the all-in-one, complete retail shopping experience for the motorcycle rider in a major metropolitan city with a much larger market than the Athens store. With their five most popular brands, they reached approximately 75 percent of the marketplace. In May 2005 they created the Chicago super store when they moved into their new home on Touhy Avenue in Skokie, a Chicago suburb. The store is 92,000 sq. ft. The parts and accessories department alone covers over
10 July 2010 www.motorcycleproductnews.com
15,000 sq. ft., bigger than most competing facilities. The store is open from 9 a.m. until 9 p.m. during the week and on Saturday and Sunday. Most motorcycle stores in the market are closed on Sundays and on Mondays. The store is a frequent destination ride on Sunday, resulting in Sunday sales sometimes exceeding those on Saturday. Walking in the door, you are greeted by bikes that stretch across the horizon! A smiling receptionist will offer to check your jacket and helmet to make it easier to enjoy the shopping experience. Their largest sales are in cruisers and sportbikes with the balance in four wheelers and scooters. Wearables and LoJacks are an important part of the sale. Russ believes in hiring experienced people in every department. His department heads all have more than 25 years of industry experience. All employees wear shirts that readily identify them as employees. The showroom, service area, bathrooms and changing rooms are kept spotless. High ceilings add
to the impressive feeling you get the moment you walk in the store. During the season, there are approximately 12-15 people in sales, 10 in parts, nine in service including six techs, four in F&I, four in accounting and two receptionists. During the summer, the store will host two or three large events. The biggest is the Q101 Sherman Rocket ride that attracts approximately 2,500 riders. Casino nights are often held on Thursday nights. Its huge inventory of new bikes and accessories as well as the long hours attract buyers from four states and as far away as St. Louis. With the increase of female riders, the store really appeals to this market, carrying a large inventory of jackets, pants, gloves, helmets and boots for women. The store also does its own assembly, so the inventory on the selling
floor is ready to be ridden out the door. During the height of the market in 2007, the store was selling and delivering an average of 500 bikes a month. The economy, poor spring weather and lack of financing for retail sales have significantly affected business over the last two years. This year, sales are increasing so far thanks to good spring weather in Chicago. The Haehns brothers’ operational philosophy is to do right for the customer. It starts with selecting the right bike, then fitting the right helmet and handling any service issues. With its central location, large inventory and long hours the Chicago Cycle superstore is well positioned to meet the needs of riders in the Chicagoland market. t www.motorcycleproductnews.com July 2010 11
T
o celebrate the 105th Harley-Davidson anniversary in 2008, Milwaukee threw another memorable bash. The faithful flooded the town to catch entertainment ranging from the Foo Fighters and Bruce Springsteen to UFC fights and hot model contests. Dealerships for miles around hosted their own events, and droves of riders made the pilgrimage to Milwaukee. Three old friends — Wade Fletcher, Brad Weber and Brian Glynn — were cruising on Harley-Davidsons from event-to-event. This wasn’t anything new for the southern Wisconsin trio. “The three of us have been lifelong colleagues and friends 12 July 2010 www.motorcycleproductnews.com
and riding companions for pretty much our entire existence on this earth,” Weber said. “We’ve seen the country from the seats of our bikes. Wherever we go, we find ourselves at HarleyDavidson dealerships.” For years, they had talked about quitting their management jobs at manufacturing companies to run a motorcycle dealership. During their ride at the 105th, the guys decided the time was right to get serious. They put in the paperwork and began to search for a location. They eventually found a beautifully redone 37,000-sq.ft. dealership located near Oconomowoc, Wis. The owners were reluctantly selling.
After some analysis and thought, Weber, Fletcher and Glynn signed on the dotted line in 2009. They exchanged their corporate lives for the daily roller coaster of running a motorcycle dealership. The twist on this familiar story of escape is the times. Early 2009 was a terrible time to sell motorcycles. “About 50 percent of our friends and associates said we were crazy,” Weber said. “But the other 50 percent said we were brilliant.” Considering what the mainstream press had to say about the Motor Company in 2009, crazy was the foregone conclusion.
Forbes magazines posted the headline, “Harley Hammered” (Jan. 12, 2009) and, during the same time period, Goldman Sachs recommended that its customers sell the stock. Market reporting website SeekingAlpha.com declared, “Company Death Watch: Harley-Davidson.” Even the more level-headed New York Times reported in March 2009 that, “Harley’s road has perhaps never looked so hazardous.” Harley-Davidson was (and is) in a decidedly tight spot. The company was laying off employees and closing plants. Earnings and sales were down by 30 percent, and stock prices plunged 70 percent, bottoming out in February 2009. www.motorcycleproductnews.com July 2010 13
“[I like] the kind of business where your customers tattoo your name on their chests.” —Warren Buffett, at 2010 Berkshire Hathaway annual shareholder’s meeting
One of the most frightening bits of news out of The Motor Company came when the company publicly appealed for a bailout early in 2009. The government declined. Warren Buffett stepped in with a $300 million loan, topped with another $300 t million from H-D’s top investors, Davis Selected Advisors L.P. The cash A was w used to fund the ailing financial services division arm. “This offering represents an important next step in executing our stated strategy for funding the t lending activities of HDFS,” said Thomas E. Bergmann, H-D CFO, in 2009. Pundits said the $600 million bought HarleyDavidson a few months, at best. They were wrong, but at the time, the headlines for Harley were grim. In this environment, Weber and his old friends left W secure jobs to buy and run a dealership. This led many to ask, why? “We performed an extensive due diligence,” he said. The dealership’s solid core of experienced staff, newly renovated facilities, and location in a stable market convinced the men that their decision was sound. “We live by the philosophy you y don’t get rewards without some risk.” 14 July 2010 www.motorcycleproductnews.com
Weber also cited the strength of the brand. “I don’t know of any other brand that people tattoo on their bodies,” he said, echoing Warren Buffet’s comment at a 2010 Berkshire Hathaway shareholder’s meeting. “The brand has withstood a lot tougher times than what we have just gone through.” That isn’t something you’ll read much about in mainstream media as of late. When the company made the most of a bit of good news that the first quarter of 2010 exceeded expectations with a profitable return, Chuck Jaffe of Marketwatch retorted by dubbing Harley-Davidson stock the “stupid investment of the week.” Jaffe’s a financial advisor with a significant readership, which doesn’t mean he’s right. Harley-Davidson was ranked as the world’s 45th-most valuable brand in 2006 by Interbrand, and the company sunk all of five places in 2009 to 50th. Harley-Davidson as a brand is right where it’s always been. Harley-Davidson has also discovered, like the Yankees and the Cowboys, that success breeds contempt. Pundits inside and outside the motorcycle industry have predicted that the wave of growing popularity that
started in the mid-1990s would eventually wane and crash. But the broad swath of people who make up the heart of America love HarleyDavidson. That isn’t about to change overnight. As Weber pointed out, the company has survived tougher times. The Great Depression was particularly hard, and many dealerships sold no motorcycles at all in 1933. The early 1940s were also challenging for the company, and the sale to AMF is probably the closest they came to slipping off the charts and into the history books. The immediate needs for the company are to increase profitability with reduced sales. The surprisingly quick recovery of the trouble H-D Financial Services division is a big step in the right direction. Showing a profit in the first quarter of 2010 is also a possible indication that the company is mending the proper fences. The company does face long-term challenges. The opportunities overseas are there, but penetrating complex markets like China and India is hardly simple. The company made good progress in February 2009 when the State Department finagled a deal that allowed Harley-Davidson to import motorcycles in
exchange for the U.S. allowing India to export mangoes. The market in India for heavy motorcycles has great potential due to the country’s size, but bear in mind that the vast interest in motorcycles in that country is for cheap transportation, something that Harleys are not. Harley-Davidson also has the widely covered issue of an aging customer base. Most of their bikes are sold to riders 45 years of age and older. The key 18-to-35 demographic doesn’t buy as many bikes as the company would like. There are plenty of people around in that higher age bracket, and they will continue to buy bikes for years to come. So the company has time to figure out the younger set. And perhaps the largest barrier is price; young motorcyclists rarely have a lot of money. Unless Harley-Davidson sells cheaper motorcycles, the younger set will remain a tough sell. The large dose of bad news makes small things seem even more significant. Everything from Joe Kopp winning a mile flat track race on a Ducati (gasp) to the rumors of The Motor Company shutting down the Wisconsin plants cause heart palpitations for the faithful. Before you start selling HOG stock and grinding
the badges off your pickup truck, note that if HarleyDavidson were to merely suggest they might leave the state of Wisconsin, how likely is it that the state would bend over backward to offer incentives to keep the plants? While tremors spread through the farm fields of Wisconsin, the bar and shield is out in force in the fertile motorcycle playground of the Smoky Mountains. The sinuous roads and growing cadre of motorcycle-friendly venues have become a favorite escape from a down economy. “Business is booming,” said Aaron Snukals, the director of marketing at Smoky Mountain Harley-Davidson. The company recently opened a new store in London, Ky., in 2009 and has several new retail locations opening in 2010. The business is driven by the upswing of interest in traveling the Smoky Mountains. Hotels and restaurants have discovered that traveling riders are good customers and are catering to motorcyclists. The bikers have discovered the appeal of the Smokie, and are flocking to the mountains to ride. Smoky Mountain Harley-Davidson helps its case by hosting concerts at The Shed, a music venue that is part of the dealership complex.
16 July 2010 www.motorcycleproductnews.com
“We don’t sell motorcycles,” Snukals said. “We sell entertainment. If you buy a bike from me, every one of my concerts are free. You get 20 percent off on the restaurant. “If I can get ‘em in the door, I can sell ‘em a Harley.” Smoky Mountain HarleyDavidson is most concerned about running out of bikes in 2010. “We are buying motorcycles from other dealers. I have ads in three papers saying we buy motorcycles.” Smoky Mountain HarleyDavidson opened a new branch store, Wildcat Harley-Davidson, in London, Ky. (population 7,993). That store has been successful due to great support from the community. The grand opening was a highlight for London, and the gorgeous dealership — which features hardwood flooring from a factory in Milwaukee, giant riding maps on the walls and vintage hot rods and bikes on display — is a source of pride and a regional destination. The economic conditions facing motorcycling are challenging, more so than most of us have experienced, and particularly so for an arrogant company that sells large, expensive luxury items. But bear in mind that the challenges faced by Harley-
Davidson are magnified by those wringing their hands about stock returns on Wall Street and selling papers in New York and Los Angeles. In London, Oconomowoc and thousands of the other hardworking corners of America, real people are still more than willing to put their cash on the barrelhead (or mortgage everything but the dog) so they can ride. Back in Wisconsin, Weber and company are enjoying living their dream despite the timing being less than ideal. Weber welcomes the change from working in a management setting to being on the floor of a dealership. “It was refreshing for me personally to have day-to-day interaction with customers and employees and manage the regular chaos and things that come up,” he said. He’s also pragmatic about the times. “It is going to take some time to recover,” he said. “But it is awful hard to beat genuine American ingenuity and hard work.” Harley-Davidson is a complicated company with big challenges ahead. But in the heart of America, people dedicated to the strength and history of the brand are still betting their futures and putting ink letters in flesh. t
Whatever Road You Choose Weâ&#x20AC;&#x2122;ll Keep You Going.
Standard keeps you going with its new motorcycle product line. As a manufacturer of engine management replacement parts for motor vehicles, the Standard brand was built on a long-standing tradition of supplying original equipment quality parts known for performance and dependability. Standard brings that history of value, quality and trust to its motorcycle line with broad coverage of ignition components, fuel injection parts, ignition wire sets, electrical switches and sensors that keep Standard ahead of the competition. Look for the StandardÂŽ brand at a distributor near you. For more information email motorcycle@smpcorp.com.
18 July 2010 www.motorcycleproductnews.com
but swap meet booths and mail is the standard for helmet sales, with bargain-basement novelty ket mar order outlets still litter the ious buyers by both uneducated, budget-consc lids designed for “fashion” worn are not really s type ie l helmet laws. “The bean as well as riders skirting their loca and co-owner VP se Hou et Helm lass hats,” says helmets at all, they’re really fiberg may be some g is that some people think there Phil Bellomy. “The unfortunate thin ly realize real t ly isn’t … so many people don’ safety value in them and there real what kind of risk they’re taking.” seven ty Administration (NHTSA) tested The National Highway Traffic Safe ified cert erly prop to pare com they e how popular novelty helmets to determin g rbin abso actral, had very little, if any, imp helmets. Novelty helmets, in gene show s test ion nuat atte lations of head impact capability. In fact, computer simu the person injuries and/or skull fracture for n brai of ty abili a 100-percent prob of these 2007 y mar sum full A et. helm a novelty involved in a crash while wearing and this handat, sa.gov in an easy-to-print form findings are available at www.nht l-branded skul r thei who may be unaware that out is a real eye-opener to riders . in an accident beanie may spell a death sentence et Task stry Council’s Aftermarket Helm Indu cle orcy Mot the rs chai Bellomy appeal and e issu help riders get past the fashion Force and says dealers need to ly an real not t’s “Tha ty. n it comes to helmet safe to their customers’ senses whe or ke smo t ldn’ shou they eone like telling som easy conversation to have — it’s riders in this omy. But it is important to engage Bell says ” hol, alco h drink so muc ts or exceeds mee to outfit them in a helmet that sort of “tough love” conversation DOT standards. gue a little rs in this oft uncomfortable dialo We want to make engaging custome rider who the on act imp big a e mak can s et sale easier, and a staff trained on helm add can lers bucket you’ve got to offer. “Dea comes in and asks for the cheapest ration onst dem and nt tme fi er by having proper serious value over an Internet deal HJC both of or ibut distr The Richard Kimes. of features,” says Helmet House’s as do rs valuable resources for dealers offe se Hou et Helm ets, helm and Shoei more for rep turers and distributors. Ask your most reputable helmet manufac your for s spec uct prod ve more comprehensi information on fitment training and entire team. customer’s first concern when it comes to your And while safety should be your be to need fashion or the bottom line helmet, that doesn’t mean comfort, ets that ded up seven top open-faced helm roun ’s MPN th compromised. This mon ting mee e whil all and benefits offer a full complement of features more helmet offerings? Visit for ing Look s. dard stan ent governm full listing of and click on “Buyers Guide” for a www.motorcycleproductnews.com helmet manufacturers.
DOT
www.motorcycleproductnews.com July 2010 19
AFX HELMETS
Never forgetting that helmets are first and foremost a safety product, the FX-70 is designed to exacting DOT specifications while keeping a budget-friendly pricepoint. It gets an aerodynamic shell design and is constructed of a lightweight thermoplastic poly-alloy for a weight of just 1.76 lbs. The removable snap-on visor allows for a quick change of style, while the square type D-ring with chin strap holder keeps the helmet snug and secure. To help reduce wind noise, the beanie also features removable ear covers. The FX-70 beanie is available in solids, flame and chrome for just $49.95, $54.95 and $59.95, respectively, in adult sizes XS to 2XL. www.afxhelmets.com
GMAX
The lightweight polycarbonate GMAX GM55S has a small shell design that sits low on the rider’s head. Its premium venting reduces heat at the top of the head combined with a Coolmax/anti-bacterial comfort liner that keeps things dry and fresh. This lid also features a removable snap in, snap out neck curtain for cool weather riding, plus speaker pockets for all of your customer’s high tech goodies. GMAX says the real highlight of this helmet is the retractable hard coated changeable sun shield. The shield retracts into the shell when not in use and simply pulls down when riders need to get the sun out of their eyes. The GM55S retails for $74.95 to $79.95 and comes in sizes XS to 2XL. www.gmaxhelmet.com
HOT LEATHERS
The HLD2001 DOT-approved motorcycle helmet rolls retro with its classic style complete with an orange racing stripe down the middle of the glossy black shell. There is also a removable front visor and an adjustable neck strap included in this helmet that’s available in small to XL sizing for just $79.95. www.hotleathers.com
SCORPION
Scorpion says its EXO 100 helmet, with features like its retractable SpeedView sunvisor, goes beyond the realm of the traditional biker beanie but still retains that bad ass attitude. More than just a half shell, the EXO 100 was specifically engineered for the hardcore contingent looking for a minimalist, yet legal, lid. Features and benefits include the patented KwickWick washable moisture-wicking liners for when things heat up, and a removable peak bill and removable padded ear curtain for when riding conditions cool off. A full range of solid colors including a matte black and new SpitFire design with matte sliver graphics (pictured) are available for an MSRP under $125. www.scorpoinusa.com
20 0 July 2010 www www.motorcycleproductnews.com motorcycleproductnews com om
Rated by SHARP, on European certiďŹ cated helmets: http://sharp.direct.gov.uk
SHOEI
The Shoei ST-Cruz is made for the cruiser who appreciates a “wind-in-your-face” half-helmet that meets DOT standards. This helmet has attractive traditional styling with a contemporary update! It boasts a lightweight AIM (Advanced Integrated Matrix) shell as well as adjustable forehead vents that allow flow-through ventilation; a plush, brushed-nylon interior; a sewn-in crown pad; the exclusive Shoei “Open-Road” visor and a D-ring chin strap with a nylon strap-retention band. Riders also have the option of removing the neck curtain and the Shoei logo. Talk about options! www.helmethouse.com
Z1R
With sleek lines, subtle logos and an exclusive semi-gloss finish on the vent and visor, the Vagrant is a sure head-turner. Complementing the exterior styling is a two-tone Nylex comfort liner and a metal badge on the chin strap. The Vagrant will keep riders cool with two venting channels underneath the comfort liner that direct air from the front vent and exhaust through rear vents. This helmet has been wind-tunnel tested to assure functional ventilation and make certain the rider doesn’t experience the pull-back of other brands. Available in solid and pinstripe colorways, its retail ranges $74.95 to $84.95. www.z1rhelmets.com
ZOX
The Alto DDV or Drop Down Visor meets or exceeds DOT safety standards and is constructed of an advanced fiberglass composite shell for maximum protection. For that perfect Zox fit and comfort, the Alto DDV is made in two shell sizes from 2XS to small and medium to 2XL, and weighs only 2 pounds. The new EPS liner system allows for a narrower profile and the high flow internal vent system keeps riders cool all summer long. The helmet itself comes with ear protectors and a high performance shorty visor. The DDV or Drop Down Visor is an easy push and pull retractable, high definition shield that can be replaced easily with a number of different tints. www.zoxhelmets.com
22 July 2010 www.motorcycleproductnews.com
oes your service department have the tools it needs to succeed? See how your tool stock as well as your consumables on hand compare to the national averages in these excerpted results of MPN's Tools & Equipment Survey conducted in May 2010. These data are based on 150 respondents, many of whom have joined our newly formed Reader Panel. MPN will regularly turn to this group of competitive dealers to take stock of what's happening at the dealer level. If like many dealers, you plan on updating or adding shop tools and equipment in 2010, you'll deďŹ nitely want to turn the page and check out the newest time-saving gadgets to hit the market.
24 July 2010 www.motorcycleproductnews.com
PERCENTAGE HAVING THESE TOOLS/ EQUIPMENT AND/OR EXPECT TO BUY Current
Expect 0.99
Hand tools
0.99
Battery charger Air compressor
0.98
Air tools
0.98
How many total employees does this location have? How many are technicians? Average Median Total employees 7.3 3 Technicians 2.5 2
0.92
Thread repair kits
0.91
Specialty tools
0.89
Work stands
0.88
Parts washer
0.86
Lift
0.84
Fork tools
0.79
Tire changer
0.77
Welding equipment
0.75
Honing equipment
0.71
Tire balancer
0.64
Brake repair equipment
0.58
Valve reconditioning tools
0.55
Porting & polishing equipment
0.5
Scan tool Boring equipment
0.4
Paint gun
0.4
What is your average markup on repair parts? Average Median
0.17
Dynamometer
0
0.2
0.4 0.6 Percentage of Respondents
0.8
39% 35%
1
ITEMS SOLD AT THIS LOCATION 1
0.95 0.9
0.9
0.83 0.77
0.67 0.61 0.56
0.52
0.5
0.43
0.4 0.3 0.2 0.1
Communications/GPS
Boots
Fairings
Clothing
Saddlebags/storage
Seats
Helmets
Suspension
0 Exhaust systems
Service 90% 56% 56% 33% 29%
0.71
0.6
Tires
Motorcycles All-terrain vehicles Scooters Personal watercraft Snowmobiles
Sell 58% 39% 37% 20% 15%
0.73
0.7
Batteries
What do you sell/service at this location?
Percentage of Respondents
0.8
www.motorcycleproductnews.com July 2010 25
TOOLS
2010’s Top Service Tools & Equipment tAUTODATA
Autodata's 2010 Motorcycle CD, "Technical Data & Labor Guide" features clear, concise illustrations of technical data from the majority of American, European and Asian manufacturers including Harley-Davidson, Honda, Kawasaki and Yamaha to mention a few. Free technical support is available, and you don't need an Internet connection to take advantage of this resouce. An Adjustable Labor Guide is also Included. A one-year subscription that includes all updates runs $199.95. www.autodatapubs.com
BIKEMASTERu The new BikeMaster stud removal sockets grip a larger area with rollers to confidently remove the studs. The socket slips over the stud, protecting it, and allows you to use the force necessary with no risk of slipping off like open ended wrenches. The rollers are bidirectional, so they can just as easily and safely install the studs. The $39.95 kit includes sizes for 6, 8, 10, and 12mm sockets and comes with a manufacturer's lifetime warranty. Taking off tight-fitting fuel, vacuum and coolant hoses can be a real challenge. With the new BikeMaster hose removal pliers, simply insert between the hose and the fitting, apply gentle pressure and the hose slides off with no damage. They also come with a manufacturer's lifetime warranty and retail at $19.95. www.bikemaster.com
tTHE CARLSON COMPANY
The new iteration of the CEMB K22 Motorized Balancer retains its fixed shaft and the unique friction roller drive system and has added improvements including electronic sensors that automatically detect the wheel diameter and offset. This motorcycle-specific balancer has what the company calls an unbelievably fast set-up and balance time due to the advances in mounting simplicity and updated electronics. The fixed shaft allows the motorcycle wheel to spin on its own bearings, exactly reproducing the conditions of the wheel when it’s on the bike. Balancing is much more accurate; wheel bearing defects can be detected and putting wheels on the balancer is far quicker and easier than converted automotive balancers. www.thecarlsoncompany.com
26 July 2010 www.motorcycleproductnews.com
CRUZTOOLSu
CruzTOOLS includes the most commonly needed hex and Torx wrenches in their tool kits, but home and shop tool boxes should contain comprehensive socket bit sets to handle all needs. As a result, the company has introduced three new sets for powersport enthusiasts: a 10-piece Inch Hex Bit Set ($24.95), an eight-piece Metric Hex Bit Set ($22.95) and a 10-Piece Torx Bit Set ($29.95). The company compares the quality to top professional tools, with polished chrome bodies and heat-treated chrome vanadium bits that exceed ANSI specifications. All sockets are 3/8-inch drive for compatibility, with the most common ratchet and T-Driver sizes, and contain an easy-to-read reverse laser imprint of size for quick identification. www.cruztools.com
Legendary Performance & Affordability Backed by 100+ years of trusted & proven tire technology
tDRAG SPECIALTIES The Drag Specialties Digital Tire Gauge uses a bright, clear LED display to quickly show you the psi in your tire in increments of 0.1 psi. It is a quick, easy way for you or your customer to make sure tires are properly inflated and ready to roll. The gauge has an LED light below the chuck that illuminates the tire valve stem for low-light or a nighttime roadside spot check. The LED display has an auto-off feature to preserve battery life and a low battery draw as well. The LED display and LED chuck light use separate battery systems to further extend battery life, and a handy metal clip on the back of the $19.95 gauge makes it easy to carry and store. www.dragspecialties.com
www.conti-moto.com
www.motorcycleproductnews.com July 2010 27
TOOLS
2010’s Top Service Tools & Equipment EXTREME OUTBACK PRODUCTSu The Powersports Puncture Repair Kit repairs tubeless tires on space-challenged vehicles such as quads and UTVs. Major components include 15 plugs, extra valve cores, glue and a Four-Way Tire Tool. The Kit's mil-spec pouch is roughly the size of a pocket-camera carrier. This $29.95 product won a Global Media Award at the 2009 SEMA trade show and is backed by a no-questions-asked, 30-day money-back guarantee. www.extremeoutback.com
GEORGE'S GARAGEu Seen here at right, George's Garage has unveiled this new Power Train Alignment Tool Kit, which enables users to perfectly align the engine, transmission, swingarm and rear tire of 1993-present FL Touring models, as a unit. The comprehensive kit retails for $370.75 complete. At left, these new Torque Plates are machined from 4140 heat treated steel and finished in black oxide. Sold in sets, each includes: upper and lower cylinder plates, mounting plate and hardware. Currently, the plates are available for 1999 to present Twin Cam models and retail for $385.95. www.georges-garage.com
GOODSON w At left, Goodson’s new Double Head Plate for V-Twin Cylinder Heads has a universal design that accommodates most Harley cylinder heads. The unique design of the bolt holes plus four spacer bars allow you to mount Shovel Shovel, Evolution Evolution, Twin Twin-Cam, V-Rod, Cam V Rod Sportster and Pan heads easily without modifying the plate in any way. At right, these Keeper-Eeze Valve Tools for Small Displacement, 4-Stroke Engines are sized to fit into small engine bores to remove and install valve keepers easily and quickly. A redesigned two-piece handle features the magnetic keeper remover on one end and the loader holder on the other. This dual-purpose shaft fits into an ergonomically designed T-handle to make fast work of head assembly and disassembly. www.goodson.com
HANDYu Handy's S.A.M. 1000 is designed to lift motorcycles up to 1000 pounds, and the 84-by-24-inch, 12-gauge table is able to accommodate most motorcycles. If a longer or wider work surface is required, different options are available including a 13-inch front extension and 12-inch side extensions.The S.A.M. 1000 also has a convenient drop-out panel for making tire and wheel removal easy. Use the CV-17 Cycle Vise in conjunction with the S.A.M. 1000 to position and secure the bike you're working on. www.handyindustries.com
28 July 2010 www.motorcycleproductnews.com om m
tJIMS Jims No.784 Oxygen Sensor Wrench is a must-have new tool for removing and installing H-D’s new four wire heated oxygen sensor on 2010 FLH and Touring Model motorcycles. The new fragile oxygen sensor must be torqued to a sensitive 14 ft-lbs, lending to the design of this tool to be used with a 3/8-inch drive torque wrench. This tool is manufactured from high-grade steel, and finished with JIMS black oxide coating. www.jimsusa.com
KOULTOOLSu Sick of fighting to get S/S braided hose into the AN socket? Thanks to this handy do-dad from KOUL Tools, installing the frayed hose end into its socket is now a snap, it’ll take about 10 seconds or less. The kits come with all the adaptors necessary to accommodate a wide range of manufacturers’ fittings. Prices start at $75 for smaller hoses and run up to $90 for larger diameters. www.koultools.com
www.motorcycleproductnews.com July 2010 29
TOOLS
2 01 t 2010’s Top Service Tools & Equipment 01 ent tMOTION PROu t
The Bead Buddy II gets a new and improved design with durable 6061 aluminum cconstruction highlighted by a blue-anodized laser finish and lase er engraved logo. This handy gadget is a must Bib Mousse tubes. It's used to push the tire bead for installing gB ad the drop center of the rim on off-road wheels while down into tth hile tire using tir e tools to change tires. You won't have to fight keep to kee ep the bead down while installing off-road tires totally worth $14.99! If you've got a little more — to jjingle to invest in your tire tools, order up the Tire Station, which you can combine with your air tank to make what Motion Pro calls the ultimate tire re cchanging station. It forms a cage around your air tank tan nk and protects it from damage. The $124.99 station ation best with 5- to 10- gallon air tanks and can be used works b without an air tank installed. with or wi th www.motionpro.com www.motionp
PARK TOOL COMPANYu The PFP-6 is a versatile, feature-packed pump at a great price — just $29.95. Capable of high volume or high pressure, the PFP-6 features an all-steel barrel, el, mid-mounted pressure gauge and a dual head that fits Schrader and Presta valve-stems. www.parktool.com/motorcycle w.parktool.com/motorcycle
NO-MARw No-Mar's Standard and Monster balancers are constructed of high-quality, precision-cut steel and are accurate to within 1/16th of an ounce! The $99 Standard Balancer comes with a 1⁄2-inch tool-steel rod and a Small Cone set. The $199 Monster Balancer comes with a 1/2-inch tool-steel rod and two steel cones. The newly updated Pro Model tire changer features an easy access foot pedal to release the upper arm/bead breaker assembly. The entire upper half easily swings out of the way and back when you need it. All contact surfaces are completely scratch-proof, and the Pro Model includes a specially designed mount/demount bar that can considerably cut the time needed for a tire change. www.nomartirechanger.com
30 July 2010 www.motorcycleproductnews.com
PARTS UNLIMITEDu The Drag Specialties Wheel Balancing Stand can be used to balance tires or true wheels up to 12 inches wide. The stand is the same one used by race team technicians and tech schools, so you get professional results. The stand is proudly made in the U.S.A. and retails for $142.95. Optional adapters for balancing HarleyDavidson wheels are available separately for $31.95 for the set. www.dragspecialties.com
tPAUGHCO Installing the crankshaft Timken bearings on the sprocket shaft of 1955 through 1969 Panhead and Shovelhead generator atorr engines is handled easily and with precision using this pick from k fro om Paughco. The Sprocket Shaft Bearing Tool allows you to pull the crankshaft pin through the bearing with th precise accuracy. Manufactured from hea heatattreated tempered steel, this goody dy retails for $129.95. www.paughco.com
Together, we can revolutionize nitrogen tire inďŹ&#x201A;ation. Increase Revenue â&#x20AC;˘ Improve Customer Retention â&#x20AC;˘ Minimize False TPMS Alarms Parker has developed an innovative mobile nitrogen tire inflator that can be used to inflate the tires of cars, vans, trailers and motorcycles. This revolutionary tool is lightweight, simple to use, inexpensive, and offers undeniably high sales potential and profit margin. The TireSaver Wand can be connected to a compressor and will automatically generate nitrogen from compressed air. This means that your investment will pay for itself in no time at all. The TireSaver is fitted with an exchangeable membrane cartridge that will serve for thousands of tire inflations.
www.motorcycleproductnews.com July 2010 31
TOOLS
2010’s Top Service Tools & Equipment e nt PIT POSSEw
Driving wheel bearings out without damaging an expensive wheel can be quite a hair-pulling task. Fortunately, the Posse wheel bearing remover set makes the job almost effortless. Not only is it safe and easy, but it works and fits on virtually any size wheel bearing on both motorcycles and d ATVs. The set consists of seven removers — 25mm, 20mm, 19mm, 17mm, 15mm, 12mm and 10mm — and two rods to fit all bearing sizes. Each remover has a tapered end so part of the remover will slip inside the bearing. www.pitposse.com
tRK R EXCEL AMERICA The n new UTC4060 RK Chain Breaker / Press-Fit & Rivet Tool seen here the chain. It also in th he e black box quickly and easily breaks 40 and 50 type chain l press-fi 40, 50 and 60 O-ring chain sideplates to the pres ss-fits tight tolerance 40 correct depth for clip or rivet link installation, and flares RK’s special pin co hole rivet links to the proper dimension to secure sideplates in place. This $129.95 tool works on most brands and comes with a lifetime warranty. And in the blue box, Excel’s new lightweight aluminum bodied Spoke Torque Wrench tightens all spokes identically to proper torque setting to maximize the highest strength capacity and reduce the likelihood of rim/hub/spoke breakage. Unlike other spoke torque wrenches, Excel’s says this Torque Wrench is easily adjustable with a range of 15-60 inch-lbs. The $139.95 kit comes with five heads in the most common sizes, including the Spline Drive head. Additional and replacement heads are available in sizes ranging from 5.1 to 6.9mm. www.rkexcelamerica.com
TRACER PRODUCTSu The TP-8647 EZ-Ject Fluid Kit makes it easy for technicians to find all fluid leaks the first time. The kit features the award-winning Optimax Jr, a mini blue light LED leak detection flashlight as well as an EZ-Ject A/C dye injector with hose and couplers, an EZ-Ject universal dye cartridge with Fluoro-Lite dye that services up to 14 units, a 1-ounce bottle of Dye-Lite All-In-One oil dye that services up to two units, a 1-ounce bottle of Dye-Lite coolant/auto body leak dye and fluorescenceenhancing glasses. www.tracerline.com
tSTOP & GO INTERNATIONAL The Stop & Go Tire Plugger allows for an on-the-spot/ on-the-wheel repair to virtually any tubeless tire, sealing 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 and the mushroom head of the plug seats on the inner wall allowing no air to escape. The entire kit weighs in under two pounds and includes the plug gun, nozzle, probe tool, reamer/rasp tool, retractable blade, 25 rubber mushroom plugs and detailed instructions. MSRP rings in at $43.95, and an extra bag of plugs is $ 7.50. www.stopngo.com
32 July 2010 www.motorcycleproductnews.com
tMETALACE After a two year absence from the market, the MetalAce 28F Imperial English Wheel is back! It is constructed of cast iron and features a generous 28-inch throat. This machine works for body panels, motorcycle fenders and more! This new design allows for the use of the standard 3-inch upper wheel and anvils, with optional 2-inch upper wheel and anvils for smaller jobs or details. The rigid cast iron frame provides a very sturdy, vibration free platform for all of your metal shaping jobs. www.englishwheels.net
VALCO CINCINNATI w Put it on and take it off with Valco Cincinnati CP’s specialty tools. Use the Tube-Grip to quickly put down sealants and glues, and use the Peeler to remove them. With the Tube-Grip, you’ll save money and shop time and ensure a properly sized and placed bead of sealant. Removing sealant with the Peeler is a snap, and you won’t gouge those aluminum parts. www.valco-cp.com
www.motorcycleproductnews.com July 2010 33
HOW TO
Hackett
– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –
BY OTIS HACKETT
DO THE RIGHT THING
I
t started while having coffee with my wife one morning as we watched the talking heads deliver the latest barrage of tragedies. They got into my head a little bit as the news got worse. I noticed that my attitude mirrored the downward spiral spewed forth on the tube. An oil spill that nobody is stepping up to fix, a violently chaotic stock market [pronounced: casino] that stole billions of dollars from shareholders a few weeks ago during a “glitch,” Republicans versus Democrats versus Tea Party versus the unions versus… What the heck are we putting up with here? Have the laws that we’ve allowed our “law makers” to heap on top of other laws to correct what they didn’t like about those laws, which were written to counteract other poorly written (or obsolete) laws, become such a tangled mass of moral spaghetti that we can no longer make
intelligent decisions based on just doing the right thing? While still pondering this mess and sipping my coffee, I read an email from a friend and long-time dealer. He’s wondering if he’s going to be able to ride this thing out. He’s done all the responsible things: cut expenses, invested in training, renegotiated every contract he has, kept his inventory moving quickly, etc. His fear is that the sound decisions he’s made for the life of his business will be superseded by the need to keep his business viable. Will he have to sell his soul to stay afloat? His email made me very introspective; I have a few decisions to make about the projects I’m considering right now. Am I going to make my decisions based solely on money? Am I committed to doing the right thing at all costs? Will I have to choose between the two? I’ve always run my business with this in mind: You must be profitable to
34 July 2010 www.motorcycleproductnews.com
“I read an email from a friend and long-time dealer. He’s wondering if he’s going to be able to ride this thing out. He’s done all the responsible things: cut expenses, invested in training, renegotiated every contract he has, kept his inventory moving quickly, etc. His fear is that the sound decisions he’s made for the life of his business will be superseded by the need to keep his business viable. Will he have to sell his soul to stay afloat?”
operate honorably, and you must also operate honorably if you’re going to be profitable. If I can’t work within the tension of that paradox, am I left with only one option to keep my business profitable — that of being a thief? I don’t think we will take back our industry by making decisions that we wouldn’t make if we had all the money we needed. I, for one, will continue to make any such decisions, both personal and business, in which doing the right thing is challenged by doing the right thing, regardless of the costs. I’ll quote my friend’s email:
“I am taking a stand to make all decisions based on doing the right thing regardless of the financial fallout. If nothing else, whether my business survives or not, it’ll be good practice for the future.” Me too. t Otis Hackett is the founder of Otis Hackett Group. OHG provides general management services for powersports dealers across the U.S. The OHG team brings realworld experience, having all been motorcycle dealership employees working on the front lines of the industry every day. Click on www.otishackett.com or e-mail otis@otishackett.com. Join us on Facebook or follow us on Twitter!
We are adding two new projects this spring spring. rm the nd his fi , a s r tt le e a k e c Ha oD for Otis Letter T ndation e An Open m m o c l re , persona incipals r is my ealer pr and e d tt y le n a is . m Th e up les OHG. Lik rship. The artic s, not in kett Gro s? Hire Otis Hac es le o a a in e h s d c u b y m e ner on th on of m der fro r k ti r o a o r e as ow g e c ;w p in n o r o ie u b r y q e a u ld p o -d x y & o e after day-t ears hould How do s chaos d 20+ y a d in the at the owner s n w ie a r s , u s e b e g d s busin I wa ou th nowle all tell y o; I had that k my powersports u pundits t q e d y r , & ess ip. esses ble to the busin ccessful busin er my ownersh who is a to write u d s n o n r s u e r e s th r p of o you yea rge ht, take-cha . Otis may need an three it straig more th Otis is a ts r , fi a e h e n it h e w b to k e r d o e th e w n rs icate joy to ommun es, owne being a as and c pulls no punch e Besides id e v ti ny crea t he r compa present each month, bu s for ou n k la c . p e is l h a c it ke his tion g his tells it li organiza s. Durin re benefits d result several o and Otis e d s m a te r e n r fa e c plem and in l yield im l il o y w ll tr t u n a f o s succes eased c ctivity th Otis has resulted in incr rease in produ d c e v in a cumente w an that h have do t, we sa n e e w m d e n g a a se, eng a purpo ty. cost. lan and as well as quali p than his a h it w y s c n te a te r aluable consis w ope gained v t. petuate pany no r e e m v p o a c t h a y I th M en ut in place cision, b e investm ostly de than justify th systems c d n a e ug re t in was a h rsonal that mo to expec nt: in OHG e s come p e g a m d in h g n te e a in n ta r s o s B s that e this busines e k d a th in tu m o t b ti n ;t , tools rsquo estme ted pla e expec rs can& ess and my inv better e th it r ly w e t r me mos ing my busin on, but ss is do above is All the mendati as a prisoner to way, the busine than I used to m o c e r of ss Iw sa a letter 00 mile ed Otis, y busine first call later, I live 1,5 e working on m I n e h W rs tim two yea far less it. Now, I spend d n a r, e than ev king in it. or spend w
Can OHG do for you what we did for Ted Filer?
, Sincerely r r, Owne . Ted File orts LLC p S r e w o P ’s r File 9
-999
585-464
Give Ted a call and ask him
(585) 464-9999 Or call Otis Hackett today to see what solutions he can provide for you. (219) 362-3190 Go to www.otishackett.com or email info@otishackett.com otishackett.com.
BEST
Operators CLUB
Chart 1
Total Store Gross Profit
– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –
BY STEVE JONES
PROFITABILITY TRENDS UPWARDS Year-on-year April Dealer Numbers
L
ast month, we looked at March numbers and explored market trend information from our dealer survey. This month, we’ll see how yearto-date April 2010 stacks up compared with 2009. Chart 1 represents data averages compiled from top-performing members in selected groups. As we saw in March, the numbers are still improving when compared with ’09. Although small, the net is a positive number. Personnel expense is much lower than it has been. Dealers are really struggling with this. You can only reduce staff so far before it negatively impacts your customer service and results in lost sales. Administrative expenses are within reach of the 12 percent benchmark, and facility expenses are coming down as dealers find new ways to cut overhead. The sales department’s personnel expense per vehicle sold has gone up. This is partly due to dealers ramping
up sales staff for the selling season. It should level out if sales continue to rise. In these groups, there has been a rise in the flooring expense per vehicle sold, despite the reduction in inventory. Spring advertising, driven by the need to move the floored inventory, has increased the advertising and marketing dollars per vehicle sold. Chart 2 shows new and preowned unit margins improving significantly, with the exception of watercraft. Overall pre-owned margins are very strong. I urge you to grow this part of your business. It plays an important role in expanding your customer base and improving your dealership’s profitability. Overall, the F&I numbers in Chart 3 are showing a significant improvement. Could you use an extra $153 gross profit per vehicle sold? There are significant increases in service contract sales, prepaid maintenance and security systems. A number of these dealers have hired better F&I producers and/or provided the staff with proper training.
36 July 2010 www.motorcycleproductnews.com
TBOC ‘10 TBOC ‘09 Benchmark 24.4% 24.2% 25%
Net Operating Profit
0.5%
-2.9%
7%
Personnel Expense as a Percent of Total Gross Profit
39.7%
41.9%
36%
Admin Expense as a Percent of Total Gross Profit
13.1%
20.8%
12%
Facility Expense as a Percent of Total Gross Profit
19.1%
26.1%
15%
Sales Dept’s Personnel Expense Per Vehicle Sold
$480
$387
N/A
Flooring Expense Per Vehicle Sold
$208
$127
$75
Advertising and Marketing Per Vehicle Sold
$133
$55
$75
Chart 2
New Unit Sales
TBOC ‘10 TBOC ‘09 Benchmark 13.9% 12% 17% New Motorcycle Gross Profit 13.9% 13.2% 16% New ATV Gross Profit New PWC Gross Profit
6%
7.8%
15%
Total New Unit Gross Profit
13.2%
12%
15%
Pre-Owned Motorcycle Gross Profit
21.4%
18%
18%
Pre-Owned ATV Gross Profit
27.8%
4.5%
15%
Pre-Owned PWC Gross Profit
4.2%
6.3%
15%
Total Pre-Owned Units Gross Profit
20.7%
17.1%
20%
Pre-Owned Unit Sales
Chart 3
Finance and Insurance
TBOC ‘10 TBOC ‘09 Benchmark
Finance Gross Profit Dollars per Vehicle Sold
$403
$250
$500
Percent of Deals Financed
44.1%
47.1%
70%
Percent of Service Contract Penetration
28.4%
17.7%
50%
Percent of Pre-Paid Maintenance Penetration
14.4%
11%
30%
Percent of Security System Penetration
4.4%
0.2%
20%
Chart 4
Service Service Dept. Labor Margin
TBOC ‘10 TBOC ‘09 Benchmark 71.8% 68.6% 70%
Parts & Accessories Total Parts and Accessory Gross Profit Per Vehicle Sold
$862
$898
$525
Parts Margin
38.5%
32.6%
39%
Accessory Margin
33.4%
31.1%
34%
Note: GSA, MPN and SEMA have teamed up to bring you the 2010 Dealer Update Workshops, Nov. 1-2 at the SEMA convention in Las Vegas. The workshops are open to all dealers and consist of 14 training sessions covering eight topics as well as two keynote luncheons and an industry panel discussion. Learn more at www.semashow.com/powersportsdealerupdate.
Chart 4 reveals continued improvement in service labor margin. Parts and accessories margins are back up after falling off last year. Parts and accessories gross profit per vehicle sold is decreasing as unit volume rises. This is to be expected. Continue to monitor your numbers closely. Get them in line with or better than industry standards. Build those customer relationships for life by providing the best customer service possible. Provide highquality training for your staff whenever you can. This will help you survive the ups and downs of our business. t
At GSA we track benchmarks through our involvement with dealer 20-groups. The TBOC data comes from the groups that ainput data in a real-time, webbased data reporting system. National Norms are compiled from the groups that report in the former-RPM data system. Steve Jones, general manager of GSA, outlines dealership best business practices to boost margins, increase profitability and retain employees. His monthly column recaps critical measurements used by the leading 20-group dealers. GSA is recognized as the industry’s #1 authority on dealer profitability.
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www.motorcycleproductnews.com July 2010 37
PEAK
Dealership PERFORMANCE
– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –
BY MARK RODGERS
YOU WANT WHO TO DO WHAT? Bring the service department into the sales process
W
ham! I heard a pair of powerful hands slam the seminar table while a simultaneous “sheesh” spewed from this workshop participant’s lips like an oldtime locomotive pulling into an undesirable station. This was followed immediately by what sounded like a Popeye-theSailor-Man-like tapestry of profanity. I get this a lot. See, for the last 25 years I’ve been a bit of a contrarian. I’m interested in what’s possible, not what’s been done. My philosophy is not to stick my toe in the water but rather to make waves. As part of this position, I’m used to the groan that often occurs with the unveiling of a new concept. It’s a groan that includes equal measures of, “You don’t understand my customers,” “That will never work here,” and “That sounds like a lot of work, you don’t have any idea how busy I am.” I was fully prepared for the usual intellectual jousting when I heard the disturbance described
above. What I wasn’t prepared for was Dan Lambert, operations director for Scott Fischer’s Ft. Myers Harley-Davidson. “This is exactly the idea we’ve been looking for!” Dan exclaimed. And instead of hearing the sound of initiative and entrepreneurial spirit being sucked out of the room, suddenly the room was charged with the electricity of possibility. What was the idea? The service manager or service writer should perform the final delivery (walk around) of the motorcycle with the customer (insert record scratch here). This does several things: • It gets the service department off on a positive note with this customer. They aren’t meeting service for the first time when they have an issue or a problem. • It gives the customer better, more thorough information about the motorcycle. • Customers leave with properly adjusted controls —
38 July 2010 www.motorcycleproductnews.com
salespeople and wrenches don’t mix! • It makes the customer’s last contact on their first visit their first point of contact on their second visit. • It allows the salesperson to get back on the floor and back to selling motorcycles. Immediately after I make this point, Dan Lambert takes this idea and starts building on the concept with the intensity of JFK delivering his “Ask not w what your country can do for y you” inaugural address. “What we’re going to do is not just have the service manager do this, but we will have the techs do it as well, and it won’t be a punishment. We’ll make it a privilege so they have to earn it. This is exactly the idea we’ve been looking for,” grinned Lambert. And presto, we have the thing that really twists my grips: innovation. Before you
Then he did one of the most powerful things you can do when rolling out change or a new idea: He asked for volunteers. Simply by presenting it as an idea and asking for volunteers, he was able to obtain employee buy-in and their involvement in building and administering the process. This goes a long way to eliminating the dreaded dealership pushback we’ve all seen derail far too many ideas. Now that Dan had some buy-in and some techs that were invested in the process, he spent some time working to improve their people skills. He focused on helping them to see that this was larger than billing out a half-hour of time. The techs immediately came to appreciate this system as an opportunity to build their own loyal customer base by providing the customer with their card. Quite frequently, the customer
“Never tell people how to do things. Tell them what to do, and they will surprise you with their ingenuity.” - Gen. George S. Patton throw out the “you haven’t met my techs” penalty flag and send me straight to jail without passing go or collecting $200, read a little further and see how Dan made this idea work. The first thing Dan did was to take this idea to his staff as exactly that, an idea. During his next service meeting, Dan ran through the idea of having the service department handle customer deliveries. He went through the pros and cons and laid out how much service techs would be able to bill for their time.
would book their first service before leaving the store and would request the tech that did their delivery. Dan has educated his techs to understand that in today’s environment, simply showing up and punching in and waiting on that next service ticket isn’t enough. His techs are out there prospecting, looking for business and building their own brand. These techs were able to increase the amount of gravy work they received by being able to suggest cool performance upgrades or talk
(Left to right) Dan Lambert,, Scott Fischer and Randy Martin: Having fun and getting it done. about the last bike they worked on that had put on this or that little “doo-dad“ of chrome. The advantage the techs have is that the customers don’t view them as salespeople. They aren’t expecting to be sold something. In fact, they aren’t being sold anything. The techs plant the seed and let the customer do the rest. The coolest part is that the other techs are now seeing how enjoyable it is to step away from that messy transmission job, grab a few wrenches and screw drivers, and go talk to the world’s happiest guy as he takes delivery of his bike. Now seeing how many specific tech requests are coming in for jobs has prompted several techs to ask what it would take for them to be able to do deliveries as well. This has led to several tough but honest conversations on what it takes to interact directly with customers and the temperament required. There were a few issues getting service and sales on the same page. Dan and his team solved them by requiring 30 minutes notice from sales. A simple form sent to service as the customer was entering the business office gave his techs the time to come to a stopping point in a job and get prepared for the delivery. How did they get sales to follow the process? How did they overcome the inevitable pushback? Easy, it was in their best interest. • CSI increased dramatically as customers got better information and all their technical questions answered. • Salespeople gained technical knowledge as they were present during the beginning of the deliveries. • Salespeople weren’t in the
i i off trying i to use position wrenches, or as they are sometimes referred to as “those pointy things that make expensive scratches.” • Customers went home focused on the technical aspects of their bike, not the gritty details of the time in the business office. • It made every customer feel good about the money they spent and increased their perceived value in the dealership. Once the salespeople saw these benefits, they invested in making sure they provided the notice so that service did the deliveries. Ralph Galietti, the assistant sales manager at Ft. Myers was also enthusiastic because it provided a professional touch at the end of the process. It was something they did that other dealers didn’t, “It slows the customer down on the way out of the store and dramatically improves their customer experience.” Besides he remarked, “Sales stinks at doing deliveries. This gets sales back to what they should be doing: selling.” Fischer Factor One reason why this innovation was able to take hold is what I call the Scott Fisher Factor. If you think Disney is the happiest
Harry earns another customer for life.
place on earth, you’ve never been to a Scott Fischer store. “We work on culture every day around here,” says Fischer. “We work hard, play hard, ride hard and sell hard. And we have fun while we’re doing it.” So take a tip from his innovative crew: if you’d like to increase sales, improve your CSI scores, create customer loyalty, positively differentiate your dealership and have your customers book their first service before leaving,
consider taking a chance on this new idea. t An award-winning author, toprated trainer and founder of Peak Dealership Performance, Mark Rodgers holds a master’s degree in adult education and the National Speakers Association Certified Speaking Professional designation — only 500 people in the world have this coveted recognition. Contact Mark@ PeakDealershipPerformance.com to improve your performance.
www.motorcycleproductnews.com July 2010 39
Lessons LEARNED
– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –
BY ROD STUCKEY
THE EVOLUTION OF INTERNET SALES LEADS
B
est I can remember it was late ’99 or early 2000 when I got serious about my former Atlanta-based dealerships having an online presence. Although none of my competitors had one of those website things, I had been convinced by a friend that it would be a must-have in the near future (yeah right, what do friends know?). So I set out to have a website built by paying a private individual to build our company site. Six months and several thousand dollars later, I realized we were in way over our heads. It was at this point that I was contacted by a startup company that claimed to specialize in websites for the powersports industry. I still remember that initial meeting and my reluctant agreement to move forward. Turns out, my expectations were exceeded. My initial perception of the value of our website was to basically have an online brochure of our dealership
with contact information and researching tools. Perhaps it could eventually evolve into a means to sell parts and accessories. But then we started getting these things called “quote requests,” and I must admit at first I didn’t fully understand or appreciate their value. At that time, I certainly wasn’t considering how much money had been spent to acquire these quote requests. In a short amount of time, Internet leads were immediately assumed to be an unrealistic hard-baller from three states away. When I would distribute Internet leads, the sales team was less than excited and often ran the other way. After pressing the issue, I would hear moaning that web leads were customers simply shopping for the best price or my favorite, “it was a 12-yearold kid.” All I knew at the time was that I had a marketing tool, but I wasn’t really sure how to leverage it. Although it was generating sales leads out of
40 July 2010 www.motorcycleproductnews.com
thin air, it was just another responsibility, and we weren’t sure how we should manage it. It seems like common sense to follow up with sales leads, but following through w was far too infrequent. I didn’t know if I needed to delegate leads individually or hire a full-blown Internet manager or if the leads were simply too unqualified to take seriously. Early attempts to hire a full-time Internet manager w were unsuccessful for several reasons. We could have hired a computer literate kid with zero sales or marketing experience to put in the position, but technical savvy with no understanding of sales is a sure recipe for failure. Furthermore, my dealerships weren’t experiencing enough Internet volume to justify a dedicated specialist yet. Most full-time employees were spread too thin to juggle another ball without risk of fumbling more important responsibilities. This is a quagmire that many dealers still face regarding the handling of web leads, but the landscape of the Internet lead has changed drastically. Let’s do a little comparison with the past and present. Back in 2000, many people didn’t have computers, dial-up was slow and clumsy, and high-speed connections were sparse and costly. Today’s consumers have the ability to stay connected to the Internet through their cell phones and can request a quote from your dealership while eating a hamburger on their lunch break. If your Internet lead sales process is the same as it was 10 years ago, it’s outdated and you’re losing sales. Yes,
that’s right, I said process. Just as you must have a process in place to handle phone ups and showroom guests, you must also have a web lead sales process. To define a successful web lead sales process, you must first comprehend and accept some key concepts that apply to your dealership. First, you must recognize your website and online classifieds are not just static marketing, they are rich media just as if you were advertising on TV or radio. In fact, your vehicle display pages can be viewed by interested prospects more times in a single day than a traditional newspaper ad might be in a week. Second, you must view your web leads as red hot sales prospects that are ready to buy right now, and that means you better strike while the iron is hot, as the dealer who follows up on web leads the fastest is often the one mostly likely to make the sale. All of this has to be put into your overall dealership selling system to become both scalable and quantifiable. The above-mentioned is just the beginning, but hopefully enough to get you thinking about your web lead follow-up sales process. When was the last time you inspected what you expect with regards to the handling your Internet sales leads? t Having owned and operated four dealerships in the Atlanta market, Rod Stuckey knows firsthand how hard it can be to get targeted dealer information, so he founded Dealership University. His monthly column gives dealers the lessons they need to learn to be more successful.
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Practice WHAT YOU PREACH
– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –
BY WILLIAM DOUGLAS LITTLE
NEW VENUES FOR MORE REVENUES Cash in on keystone margins
“W
e need to make more money,” I said to my parts and accessories manager, “and there are two ways to do that — raise prices or lower costs.” Many people might think that the latter is uncontrollable; that the only option a dealership really has is to raise prices. Raising prices in this economy risks flat-lining sales. Sure, you can try to get full pop for your items, but if you’re already at MSRP and you attempt to establish a premium on your products, you’ll likely find that you drive away more business than you can supplement with higher margins — especially if you’re in a competitive environment. That leaves us with scenario number two: lower costs. Now, if I’m buying new vehicles from the manufacturer, I’m kind of stuck. Sure, a couple of years ago you might have found someone with 10 warehouses full of a specific model, and they’d be
willing to offer some big incentive to any dealer in the district who might jump. But now, with many manufacturers limiting 2010 production, those days are long gone. Try to get extra incentives out of a manufacturer now, and you’ll likely be contacted to do stand-up comedy at the next dealer convention (except, they can no longer afford to hold dealer conventions). Time to look at your used business, but that too is pretty competitive with ever-increasing non-dealer sales as customers flock to Craigslist and eBay in search of a “deal” on a bike. This used bike fever has created a high demand thereby sending used prices skyward. So, how about trade-ins! We could lower the amount that we give for trades and therefore increase the spread between used resale and the purchase price! Um, except that there are much fewer new bike purchases now than there were two years ago, and unfortunately a lot of those customers who would otherwise
42 July 2010 www.motorcycleproductnews.com
trade in a normal market have begun to catch on to the high demand for quality used units online. So now the guy who used to trade is more likely to sell it outright, or he’ll want an arm and a leg on trade. Customers can be so difficult sometimes. So, now you know why I was talking to my parts guy… Our industry isn’t enjoying decent profits on parts and accessories either, comparatively speaking. In 2001, when I completed a large addition at my dealership, I also got into clothing with the Columbia Sportswear Company, w which is when I learned a dirty little secret: The rest of the retail business world works on something called “keystone” margins. The idea is to double your money. Clothing manufacturers sell to the stores with at least a keystone margin difference between cost and suggested retail. In our business I was accustomed to reps walking in my door with promises of 35 percent mark-ups, and they acted as though they were doing me a favor. And yet, here I was dealing with a company that didn’t understand why I’d be surprised to double my investment on everything that I bought. I didn’t even have to negotiate! Unlike the powersports apparel industry where you might have four or five top brands, the clothing world has tons of options. Just open one of the gazillion retail catalogs you get in the mail — it’s a never-ending variety of brand names and styles, all stuff that can turn quickly in the right season and bring the retailer a higher margin than what we powersports people ever get. Now, I’m not saying that you should go out and buy $20,000 worth of clothing tomorrow and start a new store within your store. On the contrary, you really need to learn a lot about that business before
making a jump like that. (In the spirit of full disclosure, I ended up getting out of the clothing business because I didn’t know enough about it to really become competitive.) This shouldn’t stop you from thinking outside the box and looking for new products outside of our industry to add another profit center to your dealership and perhaps bring in a new client base. Depending upon your local market, there are a lot of businesses that would work inside your store: maybe it’s portable buildings or western wear, maybe it’s guns and ammo or sporting goods, maybe it’s sports memorabilia or team clothing lines. My point is, there are potential moneymakers out there that can drive in new business, higher margins and still fit within your store without being too far out of place. You built your dealership because you had an interest in riding, and obviously at this point, you’ve been at least somewhat successful. Chances are you’ve weathered some hard times, especially if you’re still afloat now. So, what’s stopping you from adding another business within your existing business? But, this shouldn’t stop you from thinking outside the box and looking for new products outside of our industry; products that can add another profit center to your dealership and perhaps bring in new clientele. t Columnist William Douglas Little writes from experience, having built a multi-line dealership from the ground up. His store, Unique Powersports, has earned accolades for excellence in retail sales, community involvement and customer satisfaction. Little’s debut book, Mexican Bowl Fishing, was released in 2008 and is available at www.WilliamDouglasLittle.com.
Practice WHAT YOU PREACH
– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –
BY WILLIAM DOUGLAS LITTLE
NEW VENUES FOR MORE REVENUES Cash in on keystone margins
“W
e need to make more money,” I said to my parts and accessories manager, “and there are two ways to do that — raise prices or lower costs.” Many people might think that the latter is uncontrollable; that the only option a dealership really has is to raise prices. Raising prices in this economy risks flat-lining sales. Sure, you can try to get full pop for your items, but if you’re already at MSRP and you attempt to establish a premium on your products, you’ll likely find that you drive away more business than you can supplement with higher margins — especially if you’re in a competitive environment. That leaves us with scenario number two: lower costs. Now, if I’m buying new vehicles from the manufacturer, I’m kind of stuck. Sure, a couple of years ago you might have found someone with 10 warehouses full of a specific model, and they’d be
willing to offer some big incentive to any dealer in the district who might jump. But now, with many manufacturers limiting 2010 production, those days are long gone. Try to get extra incentives out of a manufacturer now, and you’ll likely be contacted to do stand-up comedy at the next dealer convention (except, they can no longer afford to hold dealer conventions). Time to look at your used business, but that too is pretty competitive with ever-increasing non-dealer sales as customers flock to Craigslist and eBay in search of a “deal” on a bike. This used bike fever has created a high demand thereby sending used prices skyward. So, how about trade-ins! We could lower the amount that we give for trades and therefore increase the spread between used resale and the purchase price! Um, except that there are much fewer new bike purchases now than there were two years ago, and unfortunately a lot of those customers who would
42 July 2010 www.motorcycleproductnews.com
otherwise trade in a normal market have begun to catch on to the high demand for quality used units online. So now the guy who used to trade is more likely to sell it outright, or he’ll w want an arm and a leg on trade. Customers can be so difficult sometimes. So, now you know w why I was talking to my parts guy… Our industry isn’t enjoying decent profits on parts and accessories either, comparatively speaking. In 2001, when I completed a large addition at my dealership, I also got into clothing with the Columbia Sportswear Company, w which is when I learned a dirty little secret: The rest of the retail business world works on something called “keystone” margins. The idea is to double your money. Clothing manufacturers sell to the stores with at least a keystone margin difference between cost and suggested retail. In our business I was accustomed to reps walking in my door with promises of 35 percent mark-ups, and they acted as though they were doing me a favor. And yet, here I was dealing with a company that didn’t understand why I’d be surprised to double my investment on everything that I bought. I didn’t even have to negotiate! Unlike the powersports apparel industry where you might have four or five top brands, the clothing world has tons of options. Just open one of the gazillion retail catalogs you get in the mail — it’s a never-ending variety of brand names and styles, all stuff that can turn quickly in the right season and bring the retailer a higher margin than what we powersports people ever get. Now, I’m not saying that you should go out and buy $20,000 worth of clothing tomorrow and start a new store within your store. On the contrary, you really need to learn a lot
about that business before making a jump like that. (In the spirit of full disclosure, I ended up getting out of the clothing business because I didn’t know enough about it to really become competitive.) This shouldn’t stop you from thinking outside the box and looking for new products outside of our industry to add another profit center to your dealership and perhaps bring in a new client base. Depending upon your local market, there are a lot of businesses that would work inside your store: maybe it’s portable buildings or western wear, maybe it’s guns and ammo or sporting goods, maybe it’s sports memorabilia or team clothing lines. My point is, there are potential moneymakers out there that can drive in new business, higher margins and still fit within your store without being too far out of place. You built your dealership because you had an interest in riding, and obviously at this point, you’ve been at least somewhat successful. Chances are you’ve weathered some hard times, especially if you’re still afloat now. So, what’s stopping you from adding another business within your existing business? But, this shouldn’t stop you from thinking outside the box and looking for new products outside of our industry; products that can add another profit center to your dealership and perhaps bring in new clientele. t Columnist William Douglas Little writes from experience, having built a multi-line dealership from the ground up. His store, Unique Powersports, has earned accolades for excellence in retail sales, community involvement and customer satisfaction. Little’s debut book, Mexican Bowl Fishing, was released in 2008 and is available at
IINTERMOT International Motorcycle, Scooter and Bicycle Fair
October 6–10, 2010 – Cologne, Germany
INTERMOT is the world’s leading industry event for the motorized two-wheel segment and the ultimate place for new trends, product sourcing and a place to mingle with industry associates. Every 2 years, INTERMOT attracts manufacturers, suppliers, consumers, the trade and the international media from all 5 continents. Segments range from lifestyle and high-tech to urban trends. Come and talk to industry specialists and exhibitors from around the globe and be part of sensational product launches. Discover the latest innovations associated with alternative drive technologies, such as electric motors and LEVs. Don’t miss out on this opportunity! www.intermot-cologne.com, s.eidam@koelnmessenafta.com, P: +1 (773) 326 9929.
IM10_AZ_MotorcycleProduktNews_Motorrad_7x10inch_US_FB.indd 1
27.05.2010 18:07:33 Uhr
Web SAVVY
– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –
BY PEGGY OLSON
DON’T MAKE YOUR CUSTOMERS THINK! Homepage layout and design best practices
44 July 2010 www.motorcycleproductnews.com
ebsite designs and how web users browse websites have changed w within the last five years. It used to be about the glitz and glamour using fancy animation to grab the customer’s attention. Now it’s about making sure your w website is easy to use! A visitor should be able to “get it,” meaning they should know what it is and how to use it without any effort. Web users don’t read w pages, they scan them. web They’re also click happy and w visit sections of the site that will catch their eye. In today’s interactive world, simple is better. Web users generally know what they want, and most won’t take the time to fumble through your website if they are trying to find something specific.
W
Web usability should have a common sense approach, and if you think like a customer, you’ll be able to create a website that’s easy to use. I tell my clients that simple is better and to never make a customer think. A simple call to action should be a part of every promotion or announcement that’s displayed throughout the site, and all pages should be self-explanatory. When was the last time you really took a good look at your website? I recommend analyzing your website and eliminating some of the basic question marks. Here are some basic questions to ask yourself — these are items that visitors to your site should not have to waste their time finding. • Whose website is this?
• What major manufacturer or product brands does this dealership carry? • What are the most important things on this page? • Where is this dealer located and how can I get a hold of them? (This should be prominently displayed in the header.) • Is the navigation structure userfriendly? Can you easily find what you’re looking for? Just remember that your website should be user-friendly, and it starts with a homepage that is set-up for success. A homepage should be informative, dynamic and up-to-date to keep new and existing customers on the site. There should always be something new featured on your homepage, so be creative and keep your customers informed. Your homepage should have a clear visual hierarchy, and the information displayed should have an order of importance. When you browse a website, you read left to right and then the eye will start scanning the page from top to bottom. The more important something is, the more prominent it should be. Once you’ve defined what you want on your homepage and the order of importance, make sure your content and promotional items are clearly defined. For example, your main announcement could be a robust graphic, and beneath this image you could display your other promotional items and general announcements using images and text. Do not overload the page with a ton of images. Your website is not a billboard — when implementing new content, create a visual hierarchy that combines text and professional visual aids or images. If some of your announcements have a great deal of content, do not add all of the info to the homepage. Link customers to another page to get the rest of the details about what you’re promoting. Your homepage is not meant to be the only source of information. You have a whole website to do this job. Make it obvious what’s clickable on your page. Use taglines like “Learn More” or “Click Here for Details.” You can also highlight words within your text that are clickable by changing the colors. Stay clear of a busy homepage. Make sure that the information displayed on your homepage is relevant. A cluttered homepage can overwhelm a customer!
Take a look at the diagram for helpful ideas on how information can be displayed. Every dealer’s website has a different design layout. If you follow the simple rule of creating a nice flow to your homepage by having clearly defined areas so there’s no confusion, that’s a great start. Every time you add new content or a new promotional image, make sure it’s not just thrown up there. Your content should have a place or purpose, and it should be
displayed by order of importance. Keep it simple and never make your customers think too hard when browsing your homepage. t Peggy Olson is the president/owner of Duo Web Solutions. She has over eight years of experience helping powersports and marine dealers get more out of their websites. Learn more about Olson and Duo Web Solutions at www.duowebsupport.com.
:c\Xej lg Y`b\j% Xe[ Yfkkfd c`e\j% Ask any rider – their bike needs to look good. All the time. Every time. Which is why they’ve relied on our Spray Cleaner & Polish for nearly two decades. Chrome. Paint. Windscreens. Plastic. Aluminum. It doesn’t matter. This “Detailer in a Can” does it all. In fact, the entire line of Original Bike Spirits™ products are considered the best in the industry. We promise, your customers will see the difference in their bikes. And you’ll see the difference in your bottom line.
originalbikespirits.com
www.motorcycleproductnews.com July 2010 45
Essentials P&A Mighty Hauler 1000M Mightly Hauler If your customer doesn’t exactly pack light for a road trip, The Mighty Hauler could be the perfect solution for his “luggage” needs. –––––––––––––– Sure Sellers: • Precision-engineered and constructed of heavy-duty steel for added strength and durability • Features the exclusive Mighty Hauler Sway Lock technology, which ensures that the motorcycle does not sway during travel • 1,000 pound capacity –––––––––––––– For More Info: Mighty Hauler (877) 248-1010 www.mightyhauler.com
Keihin FCR39/41 Carburetor Kits
Triple Off-Road Tire
Sudco Sudco’s unrolling Keihin FCR 39mm and 41mm Performance Carburetor Kits for Ducati’s popular 1992 to 2002 air-cooled L-twin Desmodromic valve engines found in the 750/900 Super Sport and 900 Monster models. –––––––––––––––––––––––––––––––– • Sudco can also provide Sure Sellers: optional jetting if needed • Kits include a pair of Keihin to match other engine FCR carburetors with tuned modifications velocity stacks for track use –––––––––––––– or a K&N High-Flow Street Retail Price: $892.50 to Filter and all necessary $1,002.75 installation components including dual throttle cables, – – – – – – – – – For More Info: a twist throttle assembly if Sudco needed and fuel line for an (323) 728-5407 easy bolt-on installation www.sudco.com • Carbs come pre-jetted and ready to run
Kenda Developed and tested in Arenacross and Supercross races, the Triple offers low profile sizes for improved cornering stability and traction. ––––––––––– Sure Sellers: • Tread pattern designed for hard-packed, slippery surface • Dimpled knobs allow for quick tire warm up and extra traction • New Apex casing structure with improved sidewall stiffness to reduce flex • New Sticky rubber compound for high traction –––––––––– For More Info: Kenda (614) 866-9803 www.kendausa.com
46 July 2010 www.motorcycleproductnews.com
Essentials P&A UTV Rear View Mirror Moose Utilities The SxS market is still smoking hot, and Moose Utilities has a whole slew of goodies to kit out these utilitarian units including this handy rear view mirror. ––––––––––––––––– Sure Sellers: • Large viewing surface with adjustable viewing angles • High impact plastic housing • Cast alloy arm • Automotive styling ––––––––––––––––– Retail Price: $23.95
Kruz Street Tire Kenda We’d hate to leave street-only stockers out of the loop, so we’re giving you a double-dose of Kenda this month with the Kruz street tires. ––––––––––––––––– Sure Sellers: • Specifically made for high load carrying capacity • New tread design front and rear, with deep wide grooves for all weather cruising • New bias/belted casing design for improved handling • New rubber compound for improved mileage • Tubeless Construction, DOT approved
Kawasaki Ninja 650R Windscreens Zero Gravity Racing Zero Gravity has released three distinctive windscreens for the 2009 to 2010 Kawasaki Ninja 650R. The screens are made with cutting edge technology and feature a precise fit, handpolished visible edges and distortion free optical clarity. ––––––––––––––––– Sure Sellers: • The stock replacement SR Series approximates the size, shape and function of the OEM windscreen and comes in a variety of colors for a personalized look
––––––––––––––––– For More Info: Moose Utilities www.mooseutilities.com
––––––––––––––––– For More Info: Kenda (614) 866-9803 www.kendausa.com
• The Double Bubble is sculpted to the bike’s futuristic lines and provides an added aerodynamic look and function • The Sport Touring Series screen provides additional wind protection for street or touring rider applications. ––––––––––––––––––––––––––– Retail Price: Start at $79.95 ––––––––––––––– For More Info: Zero Gravity Racing (805) 388-8803 www.zerogravity-racing.com
www.motorcycleproductnews.com July 2010 47
Spiff Pegs Sp S Ba Battistinis atti Teardrop footpegs are machined in n the th U.S.A. from billet aluminum with a rounded, tapered base and a scalloped rrou center. This design reduces weight and ccen provides greater ground clearance. Four pr p rubber inserts on each peg help keep the ru rider’s feet in place and reduce vibration ri and a road shocks. Sure Sur Sellers: • Pegs bolt on easily P with w straight male mounts that fit all m models m • Available in chrome or a black anodized finish with highlight re-machining Retail Price: $189.95 R a pair p For More Info: Drag Specalties www.dragspecialties.com www.
Trick Trike Conversion Paughco’s simple Sportster bolt-together trike kit makes the conversion from two wheels to three a simple, do-it-yourself proposition for the home wrench. Sure Sellers: • Custom swingarm and rear axle pieces bolt directly in place of the stock swingarm assembly and utilize the stock belt or chain • Rear axle assemblies are finished in black powder coat, and the swingarms are shipped raw steel • Expanded model offerings coming soon Retail Price: Swingarms: $565.95; Axle Assemblies: $1,995.95 For More Info: Paughco (775) 246-5738 www.paughco.com
Old School Shotguns Rush eliminates the need for heat tape with these smokin’ Old School Shotguns that get a ceramic coating inside and out. Sure Sellers: • Heavy-duty steel construction • Fit 2009 and 2010 H-D touring models • Available in chrome or sinister black with choices of two different baffles Retail Price: $525.95 for chrome, $535.95 for black For More Info: Rush Racing Products (219) 942-0069 www.rushracingproducts.com
48 July 2010 www.motorcycleproductnews.com uctnews.com
Climax Controls The Climax Hand Controls package solves the old ld “clea “clean an handlebar” dilemma with one complete package. If you you’ve u’ve got the bars, they’ve got the rest. Sure Sellers: • 100 percent internal wires, cables and hoses • All wires, cables and hoses come extra long so you can an cut to length • Hidden brake and clutch fluid reservoirs • Seven micro switches • Convenient push pin accessibility to the internal throttle tttle and reservoirs Retail Price: $1,899 For More Info: Custom Cycle Control Systems (866) 438-2129 www.customcyclecontrols.com m
Bikereyes Bik All of Helly’s Moab 4 Bikereyes styles are equipped with a super flexible temple that automatically adjusts to the form of the rider’s head under the helmet. These glasses also boast optimal safety, withstanding lab tests simulating a rock falling at 150 mph. Sure Sellers: • High quality shatter-proof lenses • Double-sided anti-fog coating • Includes UV 400 filter For More Info: Custom Chrome (800) 359-5700 www.customchrome.com
Low Profile L Drag Specialties forward-positioning low-profile double bucket seats with an EZ Glide backrest move the rider forward approximately 2 inches and lowers the rider 3/4 inches in comparison to stock seats on 97-10 FL models. Sure Sellers: • Perfect for the rider who may have a little trouble touching the ground while stopped • New styling and improved shape for added comfort includes solar-reflective leather in the seating area, automotivegrade vinyl on the sides and molded flexible urethane foam interior • Come in a stylish mild or flame stitch pattern Retail Price: $619.95 For More Info:Drag Specalties www.dragspecialties.com
www.motorcycleproductnews.com July 2010 49
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