MAY 2014 VOL. 40 NO. 5
05.2014
Plus Selling Wheels/Tires w Sportbike Helmet Preview w Destination Dealership: Mojotown w Choosing a DMS w
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Contents
Volume 40 Number 5 MotorcyclePowersportsNews.com
ATV/UTV Market
EDITORIAL
Will it continue the climb? By Robin Hartfiel
Editor – Brendan Baker bbaker@babcox.com Cover photo provided by DragonFire
Dealership Operations Two Things: Taiwan and the Satisfaction Index
Managing Editor – Greg Jones gjones@babcox.com
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All the News that Fits by Robin Hartfiel
Spring in Full Swing
Columnists & Contributors
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The Road Ahead by Brendan Baker
Shifting Gears
Editor-at-Large – Robin Hartfiel robinhartfiel@gmail.com
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NPA Pre-owned Monthly Recap by Jim Woodruff
Eric Anderson Steve Dodds II Steve Jones C.R. Gittere CJ Pedler Margie Siegal Jim Woodruff Denise Koeth Cyclepedia Press ART
Dealer New Units in Stock
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Inventory Report by ADP Lightspeed
Mojotown Motorcycle Gear
Graphic Designer – Kelly Gifford kgifford@babcox.com
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Destination Dealership by Margie Siegal
Impossible to Ignore: DMS
40
Official Publisher of the AIMExpo Show Daily and Show Directory
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Dealer Management Systems by Greg Jones
Does Price Really Matter
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The Service Manager by C.R. Gittere
The Importance of Pennies and Nickles
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Dealer Management by CJ Pedler
March PG&A Department Performance
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Best Operators Club by Steve Jones
Managing People
50
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Finance & Insurance by Steve Dodds II
Diagnosing Yamaha’s EFI Self-Diagnostic Systems
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51
Tech Tips by Cyclepedia Press
All Access Pit Pass
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News from the racing world
May Product Focus Sportbike Helmets ................................................................ 16 Keep your customers safe, cool and comfortable
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Tires & Wheels ....................................................................... 22 Rubber for grip and wheels for style
MPN (ISSN 0164-8349) is published monthly by Babcox Media, Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, Fax (330) 670-0874. Periodical postage paid at Akron, OH 44333 and additional mailing offices. POSTMASTER: Send address changes to MPN, P.O. Box 13260, Akron, OH 44334-8660. A limited number of complimentary subscriptions are available to individuals who meet the qualification requirements. Call (330) 670-1234, Ext. 242, to speak to a subscription services representative. Paid Subscriptions are available for non-qualified subscribers at the following rates: U.S.: $69 for one year. (OH residents add 5.75% sales tax) Canada/Mexico: $89 for one year. Canadian rates include GST. Other foreign rates: $129 for one year. Payable in advance in U.S. funds. Mail payment to MPN - Circulation, P.O. Box 75692, Cleveland, OH 44101-4755.
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THE
Road AHEAD
By Brendan Baker
ADVERTISING SALES Publisher Greg Cira Associate Publisher Sean Donohue
gcira@babcox.com (330) 670-1234 ext. 203 sdonohue@babcox.com (330) 670-1234 ext. 206
Display Advertising Sales Roberto Almenar Tom Staab Bobbie Adams Doug Basford
Two Things: Taiwan and PSI
David Benson Dean Martin
T
he first thing, which was worth spending 18 hours in a flying tube for, was getting to attend the Taiwan International Motorcycle Show held in Taipei early last month. The motorcycle show was one of four separate shows held simultaneously at the Taipei World Trade Center which included Automotive Parts, Electric Vehicles and Autotronics. I will be covering this show in greater detail in the next issue, but one of the biggest takeaways I got was just how much of a powerhouse Taiwan is in manufacturing. It’s hard to understand until you see it for yourself. Everywhere you turned was another example of a Taiwanese company with massive manufacturing capacity. Most of the exhibitors were there for the local market which is made up of a population of about 10 million scooters. Speaking of scooters, I also had the chance to visit the KYMCO factory in Kaohsiung and was impressed by the volume and speed of the production line. But the highspeed rail back to Taipei was equally impressive, reaching 177 mph! The second thing is the recently released
Pied Piper Prospect Satisfaction Index (PSI) which revealed that Ducati dealerships have returned to the top of of the rankings. The last time Ducati dealerships were ranked No. 1 was in 2009. Harley-Davidson dealers were ranked No. 1 in last year’s study but fell to second this year. The study measures dealership treatment of motorcycle shoppers, with rankings by brand determined by Pied Piper’s special patent-pending process, which gives a score to mystery shopping and ties it to sales success. According to the report, performance improved significantly industry-wide from last year, with 12 of 17 brands scoring higher. Not getting ahead of ourselves, the study also said there’s room for improvement throughout the industry. For instance, 84 percent of salespeople still greet customers with, “Can I help you?” and get, “Just looking,” in response. On the other hand, dealerships sell 34 percent more vehicles when the salesman asks for the sale at least 67 percent of the time. For more interesting stats from this study, be sure to check it out on our website. t
Brendan Baker, Editor
Jim Merle Glenn Warner John Zick Don Hemming
ralmenar@babcox.com (330) 670-1234, ext. 233 tstaab@babcox.com (330) 670-1234, ext. 224 badams@babcox.com (330) 670-1234, ext. 238 dbasford@babcox.com (330) 670-1234, ext. 255 dbenson@babcox.com (330) 670-1234, ext. 210 dmartin@babcox.com (330) 670-1234, ext. 225 jmerle@babcox.com (330) 670-1234, ext. 280 gwarner@babcox.com (330) 670-1234, ext. 212 jzick@babcox.com (805) 845-1400 dhemming@babcox.com (330) 670-1234, ext. 286
ADVERTISING SERVICES Advertising Services Valli Pantuso
vpantuso@babcox.com (330) 670-1234 ext. 223
CIRCULATION SERVICES Circulation Manager Pat Robinson Circulation Specialist Star Mackey
probinson@babcox.com (330) 670-1234, ext. 276 smackey@babcox.com (330) 670-1234, ext. 242 Official Publisher of the AIMExpo Show Daily and Show Directory
For show publications advertising information call Sean at 330-670-1234 , ext. 206.
AFTERMARKET MEDIA NETWORK Babcox Media Headquarters 3550 Embassy Parkway, Akron, OH 44333 (330) 670-1234 Fax (330) 670-0874 Babcox Media California 735 State St, Suite 409, Santa Barbara, CA 93101 (805) 845-1400 Fax (805) 324-6015 CORPORATE Bill Babcox, President Greg Cira, Vice President, Chief Financial Officer Jeff Stankard, Vice President Beth Scheetz, Controller Copyright 2014, Babcox Media, Inc.
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Inside the Industry 2014 LA Calendar Motorcycle Show Moves to Malibu and Will Benefit American Cancer Society The 23rd annual LA Calendar Motorcycle Show sponsored by Russ Brown Attorneys has announced that the American Cancer Society will be the 2014 show’s designated charity recipient. The LA Calendar Show will be giving $1 of each spectator admission purchased online at FastDates.com to the American Cancer Society. The 2014 LA Calendar Motorcycle Show continues its now 23-year tradition as the premier outdoor streetbike event in America with the Calendar Bike Building Championship & Concours d’ Elegance, top celebrity builders, selected vendors and exhibitors, and the live Calendar Girl Music Show. This year the show moves to the Malibu Golf Course in the beautiful Santa Monica Mountains. The Show
always kicks off the world premier of next year’s new 2015 FastDates.com Motorcycle Pinup Calendars featuring the world’s top road race and custom motorcycles with the beautiful Calendar Kittens featured in the calendars in attendance at the show.
The 2014 LA Calendar Motorcycle Show & Concours d’ Elegance will be held Sunday, July 20th. Purchase advance tickets online at: www.fastdates.com/ bikeshow.htm.
BMW Motorrad Achieves Historic First Quarter In the first three months of this year BMW Motorrad sales were higher than ever before in a first quarter. Supplies as of March came to a total of 28,719 vehicles (previous year: 24,732 units), making for an increase in sales of 16.1 percent. 15,183 motorcycles and maxi scooters (previous year: 13,067 units) were supplied to customers worldwide last month. With an increase of 16.2 percent as compared to the previous year, this was the best monthly sales performance in the history of the company. Heiner Faust, BMW Motorrad head of sales and marketing: “We got off to an excellent start to the new motorcycle season with a sales increase of 16.1 percent as of March. In the first three months of this year we have supplied more motorcycles and maxi scooters than ever before in a first quarter. What is more, last month was the most successful in the company’s history with 15,183 vehicles sold and an increase of
RE: BACKFIRE Heads Up Just wanted to say thank you for the excellent April edition that hit our inboxes today. We really appreciated the exposure, it was a highlight for all of us here in the Scorpion “Nest.” Any high-res. images available of that cover shot? I want to blow it up and hang it in our office! - Jayson Wickenkamp Scorpion Sports
Mark Blackwell Short-Changed I noticed you threw some words down in the March issue's “Shifting Gears” column about Mark Blackwell, but that brief mention doesn’t do justice to what Mark has done for the industry. When I got to Suzuki, Mark and Mr. Shigenoya were in lock-step when it came to the industry, the sport and the future. I learned valuable lesions from them, most of the time just listening to them speak when I was in the same room. You mention that Mark was involved with RMs… and that’s true. However, he was involved with several other motorcycle types that revolutionized motorcycling in the U.S. and the rest of the world for that matter. Unfortunately, I’ve never really seen him get credit for it.
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First, he was involved with the growing Suzuki sportbike lines and expanding the GSX-R racing programs. There’s been many great motorcycles over the past few decades, but nothing is really as encompassing a sportbike as a GSX-R. Without them, the last remnants of U.S. roadracing would be dead today. But even bigger than that is Mark’s role in the creation of the Dual Sport segment. Not only did Mark heavily influence the features on the machines themselves – starting with the first DR250/350S models – but he led Suzuki’s crusade to build the niche. The company went out and educated dealers and promoters across the U.S. on how to put on Dual Sport rides and really engage the customers. The organized rides, right down to the roll charts, we all take for granted would not exist if it were not for Suzuki, Mark and the dedicated ASMC staff that pitched in. You said it yourself, there’s not enough room to recount Mark’s contributions – but the Dual Sport thing alone is giant and should not be discounted. - Avery Innis IRS Media & Saddlemen Editor’s note: We are doing our best to make MPN relevant to its readership. If there are industry issues that we should be addressing, please feel free to let us know. Please send your letters to bbaker@babcox.com. t
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16.2 percent. Never before have we sold as many vehicles in March.” The positive result was due to the high level of demand worldwide. The first quarter was pleasing in Europe, too. The southern European markets are seeing significant growth as compared to the previous year. The strongest individual market for BMW Motorrad continues to be Germany, followed by the U.S., France, Italy, Brazil and Spain. “Based on this excellent quarterly result we have positive expectations of the upcoming months,” concluded Faust.
KENDA Returns as Official Motorcycle Tire of GEICO EnduroCross KENDA tire announced its return as the Official Motorcycle Tire of the GEICO AMA EnduroCross Championship for 2014. The announcement comes alongside news that EnduroCross championship contenders Cory Graffunder and Kyle Redmond will be
racing on KENDA tires exclusively throughout the 2014 season. KENDA enters 2014 as a seven-year supporter of EnduroCross and continues to be a key factor in the sport’s rapid growth and increased popularity with the mainstream motorcycle crowd. With AMA EnduroCross entering its eighth season as a multi-round, championship series, KENDA looks forward to another year of intense racing action. KENDA’s increased investment in EnduroCross comes as the series shifts into overdrive – increasing its race count to nine cities, including two new cities/venues for 2014.
Worldwide Harley-Davidson Retail Motorcycle Sales Climb Harley-Davidson, Inc. reported firstquarter 2014 diluted earnings per share of $1.21 grew 22.2% from the previous year on higher motorcycle shipments and continued improvement in operating
efficiencies. First-quarter net income was $265.9 million on consolidated revenue of $1.73 billion, compared to net income of $224.1 million a year ago on consolidated revenue of $1.57 billion.
“Harley-Davidson delivered gains on many fronts in the first quarter, with shipments up 7.3%, strong margin improvement and solid growth in dealer new motorcycle sales,” said Keith Wandell, chairman, president and chief executive officer of Harley-Davidson, Inc. “Thanks to the great contributions of our employees, dealers and suppliers, we continue to lead at delivering
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Inside the Industry exceptional customer experiences in 89 countries. Our Project RUSHMORE motorcycles were in high demand in the quarter and we began shipping the Harley-Davidson Street 750 and 500 into select markets. These motorcycles, together with continuous improvement in our operations at every level, underscore the momentum we’ve established as a customer-led company.” Dealers worldwide sold 57,415 new Harley-Davidson motorcycles in the first quarter of 2014 compared to 54,254 motorcycles in the same quarter last year. In the U.S., dealers sold 35,730 new Harley-Davidson motorcycles in the quarter, up 3.0% compared to sales of 34,706 motorcycles in the quarter last year. In international markets, dealers sold 21,685 new Harley-Davidson motorcycles during the first quarter, up 10.9% compared to 19,548 motorcycles last year, with sales up 20.5% in the Asia Pacific region, 8.2% in the EMEA region and 8.9% in the Latin America region,
and down 2.4% in Canada. Revenue from motorcycles grew 13.1% to $1.31 billion, compared to revenue of $1.15 billion in the quarter last year. The company shipped 80,682 motorcycles to dealers and distributors worldwide during the quarter.
what Dispatch founder Eric Doyne and his team have accomplished for their other clients, and with Chris Jonnum now serving as Powersports Director, we’re confident that we’ll be even better prepared to service our media partners. Having recently expanded our offices,
Dainese USA Chooses Dispatch as Communications Agency Dainese USA, the U.S. subsidiary for Dainese and AGV, has announced a new relationship with Dispatch Communications, LLC, a full-service marketing and communications agency with clients in action sports, beverage, cycling, motorsports, and travel and tourism industries. Dispatch will provide both of the brands with public relations and marketing services in the North American motorcycle industry. “We’re happy to begin this new collaboration with Dispatch,” said Roberto Sadowsky, VP of Operations at Dainese USA. “We’re impressed with
8 May 2014 | Motorcycle & Powersports News
showroom and distribution center in Costa Mesa, Calif., it’s great that we’re also starting this new collaboration. These are exciting times for Dainese USA, and we’re looking forward to continuing the growth we’ve enjoyed in recent years.” “Dainese and AGV are premium Italian brands with a rich, authentic heritage in motorcycle protective wear, and they’re recognized everywhere as
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Inside theIndustry industry leaders,” said Eric Doyne, Dispatch founder. “I’m eager to utilize my agency’s experience in motorcycle head protection products and leverage our strength in technical storytelling for Dainese and AGV, both of which possess breakthrough, trend-setting technologies and consumer products.” Dispatch will provide Dainese USA with its comprehensive public relations services and support for the company’s various marketing efforts and key initiatives. The agency will execute a strategic media relations program with North American media for both brands and support Dainese USA’s marketing efforts including content development and digital marketing.
consumers to be exposed to the premium products KYMCO has to offer. As a result of that success, KYMCO has committed to showcasing its newest 2015 models at AIMExpo with a revamped exhibit space inside the Orange County Convention Center. “We’re very pleased to have been a part of the AIMExpo debut and are excited to be returning for 2014,” said Rick Pawelka, director of marketing, KYMCO USA. “AIMExpo is the one show where powersports dealers, journalists and consumers get to see the latest vehicles,
KYMCO USA Celebrates 50 Years and Will Showcase New Models at 2014 AIMExpo After a successful launch last year, the 2014 American International Motorcycle Expo (AIMExpo) announced that KYMCO USA will return as an OEM exhibitor at the second annual show October 16-19 in Orlando, Fla. KYMCO was a founding manufacturer exhibitor at the inaugural AIMExpo and, as part of its 50th anniversary celebration this year, the brand plans to expand its presence at the event. KYMCO’s lineup of scooters, ATVs and UTVs were well received last October. The company received great exposure as a result of AIMExpo’s unique all-in-one platform, which allowed members of the industry, media and
parts and accessories offered by their favorite suppliers and brands. We’re proud to be part of AIMExpo and the important role it is playing in the future success of the powersports industry in the USA.” A focal point of KYMCO’s success at last year’s event was its presence at AIMExpo Outdoors! The event’s innovative outdoor space allowed attendees to demo both the brand’s on-road and off-road products, and it will once again be a hallmark of KYMCO’s efforts for 2014 as AIMExpo will serve as the first opportunity for consumers to
ride the company’s new 2015 models. “KYMCO offers some of the finest products in the market, and by being part of AIMExpo last year the powersports marketplace was able to see that first hand,” said Larry Little, vice president and general manager, Marketplace Events Motorcycle Group. “We take pride in knowing AIMExpo offered KYMCO the opportunity to gain exposure and a new, positive, and proactive way, and we look forward to being part of their 50th anniversary celebration. We’re also thrilled that KYMCO has chosen AIMExpo as the event to give its customers the first opportunity to demo 2015 models.” With nearly 300 exhibitors already committed to AIMExpo this year, the event continues to cement its place within the powersports marketplace. Exhibitor numbers grow every day and companies looking to take advantage of the AIMExpo platform should contact an AIMExpo Account Manager toll free at 855-MCShows (855-627-4697). For more information visit: AIMExpoUSA.com.
Harley-Davidson Launches Training With Riding Academy For the first time ever, those dreaming of riding can now learn on a genuine Harley-Davidson motorcycle. Harley unveiled the new Harley-Davidson Riding Academy – the only national rider training program hosted by
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Inside the Industry Harley-Davidson dealerships and conducted on an all-new HarleyDavidson motorcycles. “For years we’ve been delivering a life-changing, freedom-inspiring training experience,” said Angela Thundercloud, Harley-Davidson Rider Training Manager. “Now, we’re taking rider training to a new level by incorporating a Harley-Davidson motorcycle that students will want to keep riding long after class is over.” There is nothing like the independence of the open road. Since its inception in 2000, Harley-Davidson’s rider training program has successfully trained more than 350,000 new riders with a premium Motorcycle Safety Foundation (MSF)-approved rider training experience that guides students on their journey from the classroom to the street with an emphasis on building student confidence on their road to independence. The Harley-Davidson Riding Academy’s New Rider Course provides nearly everything students need to take the first step on their motorcycle riding journey, including MSF-certified instructors, use of a motorcycle to learn on, and a minimum of 20 hours of combined classroom and range training with a guaranteed 6:1 student/instructor ratio. All students need to bring to class is appropriate riding gear. Harley-Davidson Riding Academy students will learn to ride on the new Harley-Davidson Street 500 motorcycle. Additional features developed specifically for use in the Harley-
Davidson Riding Academy include an industry-first Power Limit Calibration that puts a ceiling on the vehicle’s low-gear speeds, allowing only the maximum rate a student needs in the course, and a unique Vehicle Protection Kit that allays student fears of damaging the vehicle in a tip-over. “Instilling confidence is vital to preparing new riders to move from the classroom to the open road,” Thundercloud said. “We designed everything – the experience, the curriculum and the equipment – to inspire that needed confidence and empower new students to have a ton of fun learning to ride on a Harley-Davidson motorcycle.” In many states, completion of a Harley-Davidson Riding Academy course can exempt riders from needing to take an additional road test before becoming licensed, and many insurance providers offer discounts to graduates. In addition to changes in the United States, where more than 180 Harley-Davidson dealers offer training courses, HarleyDavidson Riding Academy is expanding globally into Mexico, China and South Africa. To learn more about Harley-Davidson Riding Academy, or to find a participating dealer, visit www.h-d.com/ridingacademy.
Honda Gold Wing Riders Converge for 36th Annual ‘Wing Ding’ The Gold Wing Road Riders Association’s annual international event, “Wing Ding,” being held this July 2-5, is the largest single-marque motorcycle gathering of its kind. In its 36th year, Wing Ding is expected to bring more than 13,000 riders of Honda Gold Wings, and other touring motorcycles to Madison, Wis. This event will be filled with fun activities, rider safety training, charity benefits, entertainment and many friendly competitions. Riders will converge from all over the country and abroad to enjoy the riding, attractions, scenic offerings and especially the food and hospitality of Madison and its surrounding areas. During this four-day event, Wisconsin is estimated to gain an economic benefit of $10 to $15 million as members tour the state visiting and enjoying the scenic riding offered by Wisconsin. The center of the Wing Ding activities will be the Alliant Energy Center. If you are interested in becoming involved, contact Ray Garris, Director of Gold Wing Road Riders Association at director@gwrra.org, or visit www.wing-ding.org. t Please send news to Greg Jones, managing editor at gjones@babcox.com.
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By Robin Hartfiel
SHIFTING GEARS Printing All The News That Fits
B
roc Glover and the crew at Bike Week Radio Show have a new team member. Rick Lake joins Glover, Bobby Wooldridge, Paul Carruthers and Scott Cox on the number one motorcycle show on radio, serving as the senior account executive. Lake has a long history in the powersports industry, including six years at Cycle News and 12 years at the International Jet Sports Boating Association (IJSBA). He is also known for working the mic at occasional race events, such as Scott Burnworth’s Southern California Vintage Classic and was the voice of the IJSBA World Finals for many years. “I’ve had a lifelong passion for motorcycles and I’m really excited to join this crew,” Lake said. “I worked with Paul Carruthers at Cycle News and always admired his tireless passion. And what can you say about Broc Glover? The guy is a legend! It’s a privilege to come on board this team.” Bike Week Radio Show is live Sunday mornings at 9 a.m. PST on San Diego’s 50,000-watt Sports Radio Leader www.themighty1090.com or check out archived episodes at BikeWeekRadioShow.com/archive.html. •••• The Motorcycle Industry Council welcomes new General Counsel Erik Pritchard, effective immediately. Pritchard takes over for Paul Vitrano and will serve in this role for the MIC, the Motorcycle Safety Foundation, the Recreational Off-Highway Vehicle Association and the Specialty Vehicle Institute of America. “After many years of working with the associations as outside counsel, I’m excited to join full time,” said Pritchard. “I’m grateful to MIC President Tim Buche for this opportunity and his support. I look forward to serving the Associations and their Boards of Directors and Trustees.” Meanwhile Vitrano has accepted a position at Polaris Industries as VP, global government
relations. “Paul has been an invaluable and dedicated advocate for all the associations, also serving as EVP of the Specialty Vehicle Institute of America and the Recreational Off-Highway Vehicle Association,”says Buche. “His many contributions to the associations – from helping to stop the lead ban to winning tough negotiations – have served the members and other constituents well. He will be sorely missed.” •••• Bardahl Manufacturing Corp. has appointed Mark Hallsman as executive adviser. Hugh McNeil, president and CEO, stated that Hallsman will work with the company’s management team to roll out a new sales and marketing program for the U.S. and Canada this year, along with the celebration of the company’s 75th anniversary. Hallsman is an industry veteran with more than 30 years of experience. For the past 12 years, he was president and CEO for both Silla Automotive and MotorVac Technologies. Bardahl is a family owned company that was founded in 1939 by Ole Bardahl, a Norwegian immigrant who developed an oil additive product. Today, the company still has its headquarters in Seattle and maintains operations in Europe, Asia and South America to support its worldwide sales and distribution. •••• Welcome back Chris Jonnum! Readers of Cycle News or Road Racer X will be happy to note that Chris is back in the U.S. after spending 2011-2013 in Europe as the press officer for Ducati’s MotoGP squad. He is the new powersports director for full service marketing agency, Dispatch Communications. “Over the past two years, Dispatch has consistently added motorsports and powersports-related work,” said Dispatch founder Eric Doyne. “Our experience along with Jonnum’s leadership will enable us to deepen our capabilities for existing clients while offering our expertise to new brands.” Most recently Dispatch was named agency of record for Italian apparel
12 May 2014 | Motorcycle & Powersports News
giant Dainese, and in 2013 Dispatch helped Bell Helmets re-launch its motorcycle-inspired bicycle division. The agency has executed ongoing motorsportsrelated initiatives for clients such as Michelin and Red Bull as well. “I was immediately impressed with Doyne and the Dispatch team and knew it was the right environment for me,” said Jonnum, who will work from his native Long Beach, Calif. “I’m confident that my deep knowledge of the powersports industry and Dispatch’s first-rate reputation and long-standing client relationships will make this one of the leading practices in the industry.” •••• Dutch-based apparel specialist REV’IT! has appointed Tracy Motz Community Manager for the USA and Canada. Motz is responsible for marketing, as well as ongoing consumer and media relations. She is a former Madison Avenue consultant and freelance journalist with work published in The Wall Street Journal, the New York Post and various online and motorcycle publications. She has been riding since 2005 and is a certified Motorcycle Safety Foundation Rider Coach. •••• Electrifying news: Michael “Tex” Mawby has been named president of heated gear manufacturer Gerbing Motorsports. Most recently the director of motorsport sales at Gerbing, Mawby is now responsible for product and business development, sales, marketing and manufacturing for the Gerbing Motorsport division, including all 12v business. “This is an incredible opportunity,” said Mawby. “I am excited to help lead this great brand into the future.” Prior to joining Gerbing, he spent seven years as Eastern U.S. and Canadian Sales Manager for REV’IT! Mawby is an avid rider and amateur roadracer, winning four national championships with AMA, WERA and the USCRA roadracing series. In his spare time he buys and restores vintage motorcycles (and currently owns 22 bikes). Mawby has a degree in English and a degree in History from Penn State University, and now lives in Philadelphia. t
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Recap
Pre-owned monthly
By Jim Woodruff
NPA Pre-Owned Monthly Recap: Spring In Full Swing
W
ith all but one powersports vehicle category on the rise in March it’s clear that spring is here, buyer confidence is up and retail customers are gearing up for the riding season. On-highway categories saw a small but noticeable increase in Average Wholesale Pricing (AWP) in March as compared to the prior three months – domestic cruiser AWP was up five percent while metric cruisers increased six percent and sport bikes just missed double digits with a nine percent increase. Off-road AWP rose as well over the prior three months with the ATV category up six percent, while the MX category rose 15 percent and the side-by-side category is up 7 percent. Note that wholesale ATV volumes in 2013 were less than half of the volume we saw in 2010 and if we continue to see the volume of wholesale off-road units (ATV, SxS and MX) decrease, we expect off-road prices will hold steady into summer while other categories begin to decline. From a volume perspective, 2014 is continuing the trend towards a shift in the wholesale product mix to a larger share of domestic and metric cruiser volumes at the same time the share of off-road has shrunk. This is primarily due to consumer preference and the credit policies of banks the last few years favoring street motorcycles, as well as the fact that dealers are still learning the value of consigning off-road products to auction like they do for street motorcycles. Seasonality and Trade-Ins/Off The Street Purchases One certainty in the world of pre-owned powersports vehicles is that prices spring in the spring and fall in the fall. March’s performance is a perfect example and provides helpful guidance to savvy dealers. For example, when wholesale prices are high it can be a perfect time to be more aggressive with trades or buy off the street to sell at auction. Also, the decline in wholesale pricing typically starts in June, so now is the time to take that into account – when taking trades or buying off the street as spring winds down, factor in the wholesale value for those units can be 5-10 percent less in the summer or fall when you might need to unload them rather than paying last month’s top dollar. This can make for a much better inventory management experience later – rather than being heavily underwater on a unit you no longer need in your inventory, you can liquidate it quickly via auction in the summer or fall without taking a big loss.
14 May 2014 | Motorcycle & Powersports News
Data includes all live and online transactions from all four NPA locations. Closed OEM auction data is excluded.
The best way to stay ahead of the curve is to know your market and use tools like the NADA powersports guide and the NPA Value Guide. These tools will give you true wholesale values nationwide and their history of values from the past will give you the insights you need to use seasonality to your advantage. t NADA VALUE GUIDE www.nadaguides.com/Motorcycles NPA VALUE GUIDE www.npauctions.com/ValueBrowse.aspx MPN has partnered with National Powersport Auctions (NPA) to provide our readers with a monthly recap of pre-owned wholesale powersport sales results. NPA is the largest provider of pre-owned vehicles. All data is owned by NPA and provided to MPN specifically for this column. For more information, please visit www.npauctions.com or call 888.292.5339.
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Sportbike Helmets here are few things in this world as exciting as going fast on a motorcycle. However, speed can have a price, and in order to better protect riders while simultaneously keeping them more comfortable on the road, a helmet is needed. And what’s more fitting than a product focus on sportbike helmets during Motorcycle Awareness Month? Today’s sportbike helmets, often called full-face helmets, are specifically designed to function best at higher speeds while riding in a tuck position (often on the track). This doesn’t make a full-face helmet exclusively a sportbike helmet as it will still work for more vertical riding as on a cruiser, it just ensures good air flow and ventilation in more of a racing posture. Sportbike helmets tend to gravitate toward younger riders, captivating their attention with graphics, aerodynamics and lightweight designs. These helmets also have more functionality than most with aggressive aerodynamic shells and shapes taken right off the racetrack, increased ventilation and moisture wicking interiors to keep riders cool. In this month’s product focus we showcase some of the best and brightest sportbike and full-face helmets capturing the rider’s attention today. t
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R1000X Series Joe Rocket The R1000X series helmet by Joe Rocket boasts graphics and helmet ventilation performance from a combination of 11 vents. Featuring wind tunnel engineered aerodynamics, the fusion of the R1000X’s SNELL and DOT approved polycarbonate composite shell and integrated rear spoiler dramatically reduce both turbulence and drag. Complimenting the advanced aerodynamics is a CAD sculpted, dual-density EPS impact absorbing liner, which encloses the fully removable and washable moisture wicking QwickDry interior to provide a superior fit. Backing the fit is an aggressive ventilation system. The integrated Quadport 2.0 system comprised of two adjustable front intakes that flow through raised channels and out the two rear exhaust vents tucked under the spoiler, create a front to back venturi affect, pulling heat and humidity up and out of the shell cavity. This foundation is complimented with yet another three lower intake vents and four lower exhaust vents adding up for a total of 11 vents to ensure a cool, dry ride. Superior optics come in the form of a hard coated, anti-fog, 3D shield that is actuated by a precision movement, tool-free closure mechanism. Plus every R1000X also includes an additional hard coated/dark smoke shield. Other details include; a removable internal air-guide for enhanced fog resistance, removable chin curtain, and clavicle-friendly sculpted bottom edge gasket that further compliments the R1000X’s comfort and turbulence reducing aerodynamics. ------------
MSRP: $169.99 ------------
For more info: www.joerocket.com
16 May 2014 | Motorcycle & Powersports News
Vector-2 Hawk Arai Helmet Arai’s Vector-2 Hawk lives up to its namesake with bold, feather-inspired graphics above angular geometric elements. Three color combinations are available, including a dynamic red on red, a cool blue on blue and a stealthy grey on frost black with green accents, providing plenty of options for any style of rider. From a technical perspective, the Vector-2 Hawk features Arai’s customizable FCS Cheek Pad system, an SAI shield and wider eyeport for exceptional visibility, plus high-flow ACR-type crown ventilation. As with all Arai helmets, the Vector-2 Hawk also features the foundational R75 Shell Shape, providing a rounder, smoother and stronger shell that better disperses energy by sliding, not catching, on uneven surfaces. ------------
MSRP: $639.95 ------------
For more info: www.AraiAmericas.com
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Shiro 7000 Shiro The Shiro 7000 is the first full face Shiro product to hit the U.S. market. The Shiro 7000’s lightweight, carbon fiber and fiberglass shell is wrapped in a tribal inspired “Force” graphic available in four UV protective, clear-coated paint colors as well as flat and gloss black. The interior of the helmet is adorned with plush pillow soft cool max material which is removable and washable. The chin strap features a convenient quick release retention system allowing riders to latch and unlatch their helmets effortlessly. The Shiro 7000’s tight tolerances keep road and wind noise to a minimum allowing for a comfortable and enjoyable riding experience. The helmet also features anti-scratch and anti-fog shields, and adjustable front and rear venting. Shiro Helmets are exclusively distributed in the United States by Fulmer Helmets. ------------
MSRP: $289.95-299.95 ------------
For more info: www.fulmerco.com
EVS Sports Cypher EVS The EVS Sports Cypher helmet is injection molded with ABS high-impact material. It has a quick-release shield, interior drop down sun visor that has anti-fog and antiscratch capabilities. The DOT and ECE certified Cypher also has quad density EPS, a removable and washable ultra suede inner comfort padding and adjustable top and chin venting system. ------------
Retail price is $159 – Gloss White & Gloss Black / $169 – Matte Black, Maverick & Bolt. ------------
For More Info: www.evs-sports.com
Shoei RF-1200 ‘Review From the Field’ By Kevin Butler, Northern Ohio Ducati Triumph n today’s market there are vast options for full-face helmets. The majority of your mainstream manufacturers have suitable candidates in the mid- to upper-midrange price point, but right out of the box a few things were very obvious about Shoei’s replacement of the popular RF-1100. First off, this helmet is light! Based on my scale, it’s two ounces lighter than similarly priced offerings. In addition, the shape is aggressive and sportier than its predecessor, boasting a slim, new, weight-saving shell complemented by a new rear spoiler that makes you want to go fast! As I further inspect the helmet, I noticed the bright red emergency cheek pad removal straps and streamline entryway to make getting the RF-1200 on and off a snap. Included in the box are an optional integrated chin-curtain and breath-guard. Both of these can easily be installed or removed by the rider. I couldn’t wait to road test the RF-1200. I opted for the Shine Red version with an MSRP of $498.99. The graphic version retails a bit higher at $589.99. As I clicked through the gears and increased speed, I immediately noticed how quiet and comfortable the RF-1200 was. The pads are made both for comfort and to dissipate moisture. Shoei updated the shield to offer multiple positions for venting and even included a pin lock anti-fog system compatible with the supplied clear shield. It was a brisk spring evening so I decided the breath-guard should be part of the test. Used in conjunction with the venting system, there were no issues of fog even in slow traffic. With a pre-cut speaker pocket and competitive price point, the Shoei RF-1200 is ideal for riders from weekend track day warriors to those seeking excitement from adventure or sport touring trips. t For more info: www.shoei-helmets.com
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MotorcyclePowersportsNews.com 17
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Sportbike Helmets HJC CL-17 HJC The HJC CL-17 helmet has an advanced polycarbonate composite shell that makes it lightweight. The CL-17 provides superior fit and comfort using advanced CAD technology. The optically superior pinlock-ready faceshield has a new 3D design that provides 95% UV protection. The shield has an anti-scratch coating and is prepared for the ultimate anti-fog Pinlock insert, which is sold separately. The CL-17 also has a RapidFire shield replacement system that has quick, secure, tool-less removal and installation. The helmet's “ACS” Advanced Channeling Ventilation System has full front to back airflow that flushes heat and humidity up and out. ------------
MSRP: $139.99 ------------
For More Info: www.hjchelmets.com
Schuberth S2 Lines Schuberth For over 60 years Schuberth has created and built upon a tradition of head protection innovation, and the S2 continues that tradition as the world’s first motorcycle helmet to incorporate an internal antenna to enhance reception when using the optional Bluetooth Schuberth Rider Communication System (SRC-System). The S2 also features Schuberth’s proprietary S.T.R.O.N.G fiber construction, an internal sun visor, and an aerodynamic shell design that utilizes a full-circumference spoiler for reduced lift and drag at speed. As with all Schuberth helmets, the S2 helmet has undergone extensive test lab development to exceed DOT and ECE safety standards. ------------
Stealth F117 Vega The Stealth F117 is Vega’s flagship full-face helmet brand, which joins the off-road Flyte and the convertible Phantom to expand the offerings of Vega’s premium helmet line, featuring European styling, excellent fit, plush fabrics and edgy graphics. The Stealth F117 is lighter than many full-face helmets on the market at only 1350 grams for the Carbon Fiber version and 1450 grams for the full line. The advanced CAD designed aerodynamic shape ensures a quiet ride by minimizing wind buffeting. Ample venting options add to rider comfort, including multi-position top vents, chin vent, and rear venting that has been designed for a Venturi effect to yield faster airflow and unmatched comfort. The tinted drop-down interior sunshield is spring-loaded for easier manipulation with bare or gloved hands. The anti-scratch, anti-fog, optically-correct outer shield has a positive locking design for a secure seal and has been designed with a mechanism for effortless shield change. The F117 comes in eight sizes (XXS-3XL) based on two different shells. The thick, plush Dupont Coolmax liner sports contrast stitching and an embossed interior, with communication-ready Easy-Com cheek pads. The liner is fully removable and washable. The Stealth F117 is dual-certified to meet ECE and DOT standards. ------------
MSRP: $169.99 for solid colors, $189.99 for graphics and $349.99 for Carbon Fiber. ------------
For More Info: www.vegahelmet.com 20 May 2014 | Motorcycle & Powersports News
MSRP: $649 ------------
For More Info: www.SchuberthNorthAmerica.com
Corsa Soleluna AGV The AGV Corsa features most of the features of the Pista GP model, in a super light composite fiber outer shell. It was developed in the same AGV Extreme Standards Helmets project of the Pista GP, which makes it one of the most innovative helmets ever released by AGV. Designed, developed and tested together with Valentino Rossi aiming to create the ultimate protection for racing, the use of FEM (Finite Elements Analysis) enabled developers to reach new untouched standards in terms of protection, comfort and ergonomics. The improvements over the GP-Tech are groundbreaking. The new IVS (Integrated Ventilation System) provides a total surface area of air intakes improved by 193%. The rear spoiler and the smaller dimensions of the front section and lateral section maximize aerodynamic performances at high speeds. The new quick release visor mechanism is 71% smaller. It is also provided with a front microlock system that reduces the risk of opening, in the event of an accident. The field of vision is 15 degrees wider and has been optimized for a rider tucked over the tank. ------------
For More Info: www.store.agv.com
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Sportbike Helmets EXO-R2000 Circuit Scorpion The EXO-R2000 is Scorpion’s flagship performance race helmet that was developed with the help of their sponsored pro riders in MotoGP, therefore it’s not your average arachnid. The EXO-R2000 features an exclusive five-layer composite shell and uses a special ratcheting system called Ellip-Tec that pulls the shield in as it locks down to create a tighter seal. The ventilation system produces generous airflow and circulation throughout the helmet with plenty of inlets and outlets to direct just the right amount of airflow for any rider’s preference. The aerodynamically designed tear-drop shell shape minimizes buffeting at high speeds and has a unique “Air Fit” cheekpad system that ensures a custom snug fit. The helmet also comes equipped with Emergency Release cheek pads, a standard clear shield plus a bonus dark smoke EverClear shield. Pinlock MaxVision-ready flat shields with tearoff posts are also available as an option for customers who are prone to stretch the legs of their sportbikes on the track. One of the sure sellers of this premium helmet is that it comes full-featured at a very reasonable price point. Your customers are sure to give the EXO-R2000 a second look when choosing their next lid. ------------
MSRP: $389.95 ------------
For More Info: www.scorpionusa.com
MotorcyclePowersportsNews.com 21
22-27 Tires_Wheels Products 5/7/14 9:45 AM Page 22
Tires & Wheels By Denise Koeth
ires and wheels are vital for the safety and performance of any vehicle – they are, after all, the only thing connecting your customers’ machines to the road. But motorcycle and powersports riders also look to these components to add style to their rides. Because tires and wheels can make for big additions to your dealership’s bottom line, having the right knowledge and inventory is key. Seek out supplier training opportunities, whether online or in-person, to educate your sales and service staff. On the tire side, do your best to get sales associates actual experience on the latest rubber so they can offer customers first-hand advice. Stay up-to-date on the latest technologies and trends – tire manufacturers said popular trends right now include higher mileage options without sacrificing performance, more white wall requests, taller tires, cafe and retro, and an increasing number of unusual sizes from OE bike manufacturers. Regarding wheels, seven spoke wheels that replicate the same ones used in MotoGP and World Superbike are currently trending. The MSRP on high-end aluminum or magnesium wheels can be quite a shock for some consumers. Consider installing the wheels on a new motorcycle in the dealership, giving the appearance of a bike that’s a special/limited edition. Also consider allowing the impact of the wheel cost to be spread out through financing. A few bucks more per month to have that “killer bike jewelry” is an easier sell. Win with customers by keeping up with new technology in order to select the right tire and wheel pairing to meet their needs. Today’s riders, who are well-educated from the moment they enter your door, consider the value proposition of the benefits of new technology versus what they pay for it. Remember, value isn’t the same as price – customers are willing to pay for technology that benefits them. You don’t want to miss a sale when the opportunity presents itself, so for starters, stock core products in the popular sizes for each major bike brand. This information often can be found in manufacturers’ fitment guides or dealer support websites. This month’s Tire & Wheel Product Focus will keep you up to speed on the latest offerings in this important segment. t
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22 May 2014 | Motorcycle & Powersports News
Mudder Inlaw WPS Inc. Distributor WPS Inc. added the Sedona Mudder Inlaw, a deep lug, 8-ply, puncture resistant radial mud tire. The tire features a tread design that wraps down the sidewall for deep paddling traction, as well as an aggressive tread pattern that offers deep mud traction, is self cleaning, and is relatively smooth running on transfer sections. ------------
For More Info: www.wps-inc.com
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Sport Bike, Harley and Off-Road Tires Dunlop Dunlop has released several new tires, each featuring new technology. For sport bike enthusiasts, Dunlop’s Sportmax Q3 is the only motorcycle tire with carbon fiber in the sidewall to tune handling performance. Dunlop’s American Elite range for Harley riders, now with more sizes and sidewall options, features Multi-Tread in all of the rear tire sizes for more miles without sacrificing handling when cornering. The new offroad Dunlop Geomax MX32 and MX52 tires provide traction and handling for motocross and recreational riders. The tires feature patented progressive cornering block technology to enhance traction over a broader range of terrain. ------------
For More Info: www.dunlopmotorcycle.com
Kanati Mongrel GBC Motorsports GBC Motorsports’ Kanati Mongrel, the first DOTapproved radial tire built specifically for side-by-sides and utility ATVs, is a true all-purpose tire with an aggressive and versatile tread pattern. Designed to handle a variety of terrains including dirt, sand, hardpack and paved roads, the Mongrel is available in seven popular sizes for sideby-sides and utility ATVs, as well as a number of unique sizes. The tire features aggressive tread and 8-ply durability for maximum performance, plus an overlapped centerline for safe and smooth driving on roads and paved surfaces.
Storm 3D X-M Avon Tyres Avon Tyres’ Storm 3D X-M tire, specially engineered for sport touring motorcycles, combines long life with performance, ride comfort and handling. Featuring interlocking 3-D points in the sides to improve stability, warm up time and grip while limiting tire flex. The tire design includes both single and multi-compound super rich silica for longer life and excellent performance and grip in both wet and dry conditions. The Storm 3D X-M is available in six popular 17- to 19-inch front sizes and 10 popular 16- to 18-inch rear sizes. ------------
For More Info: www.avonmoto.com
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For More Info: www.gbcmotorsports.com
VRM-393 Tour Cruize Slasher AT401 MTA Distributing MTA Distributing’s Slasher AT401 ATV/UTV tire offers dimpled lug, directional tread to provide excellent traction over a wide variety of terrain. The tire’s 4-ply carcass features a cut-resistant compound for maximum durability, while its overall light weight makes the Slasher AT401 a great choice for older or smaller displacement models. ------------
For More Info: www.mtadistributing.com
24 May 2014 | Motorcycle & Powersports News
Marshall Distributing The Vee Rubber VRM-393 Tour Cruize motorcycle tire, offered by Marshall Distributing, is designed for the touring rider who likes to cruise with confidence with a quiet, well-constructed tire. Its compound is built for long mileage and exceptional handling while providing great wet weather performance and rain shedding ability. ------------
For More Info: www.shopmarshalldealers.com
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MV 675 and 800cc range BlackStone Tek BlackStone Tek recently added wheels that work across the MV 675 and 800cc range of motorcycles. The wheels offer a 38 percent weight savings and create 50 percent less inertia than OEM wheels; pricing starts from $3,200. ------------
For More Info: www.blackstonetek.com
Fierce Xtreme Machine Xtreme Machine’s new Fierce wheel features a fivespoke design with creative, engineered cut-outs machined through and through. Available in chrome, contrast cut and the new Xquisite finish, Fierce carries a retail price starting at $1,249.95 for HD applications. ------------
For More Info: www.xtrememachineusa.com
26 May 2014 | Motorcycle & Powersports News
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Evo Spokes for Mammoth Wheels DNA Specialty DNA Specialty now offers Evo spokes for its Fat 52-Spoke Mammoth wheels. All Mammoth wheel spokes and nipples are high polished stainless steel; rims are triple chrome-plated spun steel for durability; and hubs are forged 6061 billet alloy. ------------
For More Info: www.dnaspecialty.com
Stealth DWT Racing DWT Racing’s newest billet-style utility ATV/SXS wheel, Stealth, is cast in lightweight, yet strong heat-treated aluminum. Available in all current UTV and utility ATV model wheel fitments, the Stealth wheel features a billet-look center, included molded center cap, pre-installed valve stems, and tapered lug nuts that are sold separately. It is available in machined black wheel finish. ------------
For More Info: www.dwtracing.com
MotorcyclePowersportsNews.com 27
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By Robin Harfiel
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n a passion-based industry like the powersports market, emotions can color basic business decisions. Face it, given the economic downturn of recent years, selling ATVs and UTVs has been a hard way to make an easy living. However, being objective and rational, it looks like the market is making a comeback. The OEMs and the aftermarket alike have experienced solid growth since 2010. If you break the numbers down, more than half a million UTVs were sold in that timeframe, and an equal number of ATVs has passed through the retail pipeline as well. Forget emotion, the cold hard fact that more than one million new units are now in use is something you can take to the bank.
28 May 2014 | Motorcycle & Powersports News
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ATV sales are up marginally. The latest Motorcycle Industry Council Flash Report indicates that ATV sales are up for Q1 2014, as 45,388 units sold from JanuaryMarch. Granted, the increase is only 0.5 percent over the same timeframe in 2013, but that is worlds better than the double-digit drop experienced in the scooter market and the continuing woes of the dirt bike market. Not reported by MIC is the real bellwether for the 4-wheel market: UTVs. The North American UTV market continued to grow significantly in 2013 as recreational applications helped increase sales by more than 9 percent to approximately 353,500 units — a new record, according to Power Products Marketing. PPM is a Minneapolis-based research firm that provides detailed market share data and research services to the global power equipment industry.* According to PPM, the strong growth surge was again led by Polaris Industries, which now enjoys a UTV market share of more than 40 percent, followed by Deere and Kawasaki. However BRP/Can-Am may be the one to watch. “BRP’s market share in both ATVs and side-by-side has grown since 2010,” says Jerrod Kelley, Media & PR consultant for BRP / Can-Am. “We’re currently the leader in big-bore ATVs and a strong No. 2 in side-by-sides. Along with its positive reputation, the Can-Am brand has become more prevalent due
to our substantial product offerings and innovative approach. These include the introduction of the versatile Commander line of side-by-sides, the redesign of the Outlander ATVs, the launch of the Maverick 1000R family and now a strong model-year 2015 launch, with the do-it-all Outlander 6x6 ATV and value-driven Oulander L models.” In fact, as this issue was going to press, the 2015 Can-Am media kit was hitting the consumer press. The value-proposition of the two “L” model ATVs and the growing strength of the Maverick side-by-side definitely make Can-Am a contender in the heavy weight ranks. With the early release of the 2015 product line, it was too soon to get Kelley to speculate on where Can-Am goes from here, but that didn’t stop us from asking! “I really can’t comment on future product or our strategic approach,” he says. “However, BRP is an industry leader and will continue to develop ATVs and side-by-side vehicles that appeal to the end users and their demands. Whether that’s more vehicles that appeal to a certain niche or enhanced cross-over abilities remains to be seen.” The aftermarket numbers confirm these trends. “Polaris has been our bread
30 May 2014 | Motorcycle & Powersports News
4WheelDirt.com Goes Live: ATV/UTV Site Breaks New Ground An all-new ATV/UTV focused site was recently introduced: 4WheelDirt.com. Brought to you by the same team that produces MotorcycleUSA.com and Cycle News, 4WheelDirt.com provides a dedicated home for the 4-Wheel off-road market. "Although MotoUSA has included ATV and UTV content for years, it was time to consolidate this coverage into a more focused, truly dedicated site," says veteran Motorcycle-USA staffer Justin Dawes. A diehard ATV/UTV enthusiast, Dawes was the obvious choice to become the editor leading the charge at 4WheelDirt.com. “I’m looking forward to the variety that we will be bringing to the readers of 4WheelDirt," he adds. The site features everything from ATV/UTV reviews, travel articles, gear reviews, industry news and racing coverage. "We live the sport! From reviews and racing, to project builds and camping expeditions, the 4WheelDirt team will strive to keep you entertained and informed," concludes Dawes. Log on to www.4WheelDirt.com to get the straight scoop.
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and butter for the past four years, more specifically the RZR,” says DragonFire’s social media manager Chris Moore (who shot the Can-Am on the cover of this issue, incidentally). “But moving forward, we see Can-Am becoming a real player.” That being said, Moore notes that the aftermarket accessories firm saw an unusual spike in dealer orders for Arctic Cat’s Wildcat UTV this spring. “The more the merrier we say,” says Moore. There is huge potential for aftermarket accessories, so much so that our friends
on the automotive side at SEMA clued into the fact that more than 670,000 UTVs were sold between 2010-2012. And unlike motorcycles, you can multiply your tire/wheel/shock sales x4! Clarity Research teamed with SEMA to put together the UTV Accesorization report to help its members understand the value of the UTV market. “By looking at accessory purchases, vehicle usage and interests, you can better understand the buyers that are likely to be your company’s customers,” says the SEMA report.
32 May 2014 | Motorcycle & Powersports News
“Understanding the needs of these key consumers can help you better serve your customers.” This approach works equally well on the powersports dealer level. “Expansion opportunities may exist with customers you haven’t previously targeted. By recognizing the similar needs and interests of UTV consumers, you may be able to tailor existing services to prospective crossover segment,” again what SEMA says makes sense, but it is their findings on the numbers side that are most interesting: 1) About 82 percent of owners have purchased or plan to purchase upgrades to their UTV. More than 410,000 households in the United States buy UTV accessories. 2) Accessory decisions are made early. Most purchases occur within the first three months and many are completed at dealerships or direct through the OEM. Personal sources, such as dealers, friends and family, have the greatest impact on these buying decisions. 3) Sport models are the most
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ATV Safety Blitz The ATV Safety Institute is launching allout safety blitz this summer. Set for June 8-15, ATV Safety Week will be highlighted by free ATV RiderCourse training throughout the country. ASI is currently seeking dealers to partner with. ASI will support each event with information on the website and send participants ATV safety educational materials. ASI also can assist in offering the ATV RiderCourse at no cost, as well as with site selection, course scheduling, registration materials, and completion materials. Groups or others interested in joining ATV Safety Week should contact ASI at trainingops@svia.org or call (949) 727-3727 X3064. The ATV RiderCourse gives riders the opportunity to learn how to safely get the most out of their machines on a closed-course range, with the help of a licensed ASI Instructor. The RiderCourse is free for anyone who signs up during ATV Safety Week. The RiderCourse is also free year-round for anyone who has purchased a new, qualifying ATV from an
ASI member company. The ASI offers easy enrollment at atvsafety.org, or call 800-887-2887. ASI also offers a free E-Course, available online 24/7. This online course is available in three age-specific courses for adults, teens and children. Students in each course learn how to apply the "golden rules" of ATV riding in an interactive setting. The course includes videos, pictures and interactive games to make it a fun and effective learning experience for all ages. After taking the course, users can take an ATV safety exam and receive a certificate of completion. The All-Terrain Vehicle Safety Institute (ASI), a not-for-profit division of the Specialty Vehicle Institute of America (SVIA), was formed in 1988 to implement an expanded national program of all-terrain vehicle (ATV) safety education and awareness. The ASI is sponsored by Arctic Cat, BRP, Honda, Kawasaki, KYMCO USA, Polaris, Suzuki and Yamaha.
34 May 2014 | Motorcycle & Powersports News
accessorized. Sales for this type of UTV is more common in the West, and owners of these vehicles are more social, often riding with passengers and in groups. Multipurpose vehicles comprise the largest segment of UTVs sales with the highest volume residing in the South. Owners seek ultimate versatility with their vehicles and its modifications. Utility model sales are strongest in the South and Midwest. Owners perceive and use their UTV as a tool, focusing on practicality and durability. They are the least likely to upgrade their vehicle and are the most solitary, frequently driving their UTV alone. A rising tide floats all boats, as they say. The demand for new units has helped keep older units in use and kept the value up for clean late model machinery. According to NADAguides new Market Insights report, the bad weather actually helped drive up utility ATV sales. The appraisal guide/valuation experts surveyed dealers across the country to find out what used units were moving for a comprehensive report
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NADAguides.com Traffic Top 5 Most Researched ATV Brands
Suzuki
Can-Am
Kawasaki
Yamaha
Yamaha
John Deere
Honda
Kawasaki
Polaris
Polaris
released in January. “The best chart). For the side-by-side January 2014 30% selling categories in the past 60 segment, Polaris had the lion’s 29% 29% days have been Utility ATVs at share of search activity with a 25% 39.2 percent followed very closely whopping 59 percent. 20% 23% by utility side-by-sides at 24.3 We are not suggesting that 15% percent,” notes Lenny Sims, dealers give up their passion for 10% NADA’s VP of operations. Sport motorcycles, but simple math 10% 9% side-by-sides accounted for a should dictate taking a closer look 5% solid 8.1 percent of the sales at the ATV/UTV business to see 0% during this time. “However, as the what you’re leaving on the table. industry heads into the spring SEMA’s research indicates that 60% NADAguides.com Traffic season, NADAguides anticipates regardless of the make, model or 59% Top 5 Most Researched Utility Vehicle/ 50% Side-by-Side Brands a greater move toward new unit geographic location, the average January 2014 sales causing the used market to UTV owner spends more than 40% soften slightly.” $1,550 on accessories… and they 30% Unlike new unit sales, Honda is are relying on you, Mr. Dealer right with Polaris when it comes to to help them with this buying 20% used units, according to users of decision. t 16% 15% 10% NADA’s online search tools. 5% 5% *PPM’s 2013 North American “Consumer behavior is a key 0% Utility Vehicle Market Report indicator in predicting market Source: NADAguides.com and research services are activity,” says Sims. “We included available to original equipment the most researched brands and manufacturers (OEMs), component & aftermarket regional activity for January 2014 in the Consumer Overview suppliers, associations and government agencies linked to section of the NADAguides Market Insights, where Polaris and Honda tied for the most researched ATV brands.” the global power equipment industry. Learn more at Yamaha was a close third on the ATV side (see corresponding www.PowerProds.com.
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ADP Lightspeed Dealer Management Solutions are designed to help manage dealer operations by tracking and storing data from every department and delivering information that will assist dealerships in making successful business decisions. Every night, more than 1,800 Lightspeed powersports dealers automatically transmit their information to a collective database held at the ADP Lightspeed offices in Salt Lake City, Utah. Summaries and aggregated reports are available to dealers for both current tracking and historical research. This helps dealers know how their dealership is performing compared to other dealers across the country. Parts and major unit inventory information is gathered and used in the highly successful Lightspeed Dealership Locator program. This program is designed for dealers to post obsolete inventory, allowing other dealers from across the country to locate hard-to-find parts and units. ADP Lightspeed stands ready to work with all parties and move the industry to new levels of understanding, and ultimately to more efficient and profitable operations. For questions regarding this report or to inquire about a custom report, please contact Lightspeed Data Services at (800) 521-0309.
Powersports Dealer New Units in Stock
April 2014 1,805 Lightspeed Dealers, Distribution of Units by Type and Model Year Prior to 2013 Model Year
2014 Model Year
9%
23% 68% ATV 13% 25% 62% Off-Road Motorcycle 14% 33% 54% On-Road Motorcycle 17% 42% 42% Scooter 11% 17% 71% Snowmobile 4% 12% 83%
www.adplightspeed.com
Utility Vehicle
36 May 2014 | Motorcycle & Powersports News
2013 Model Year
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DESTINATION
Dealership Story by Margie Siegal / Photos by Joel A ron Photography
Mojotown Motorcycle Gear A shop designed by an ethusiast for enthusiasts
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ome people are good at keeping a lot of balls in the air, and Michael Aron, proprietor of Mojotown Motorcycle Gear Shop in San Rafael, Calif., is one of them. He is not only managing his retail store, but also running an ad agency, named Mojotown Multi Media, promoting RaceFuelZ, an all natural recovery and endurance drink, and overseeing a nonprofit, the Mojotown Project, that connects nonprofit groups with marketing resources and the funds to obtain them. In his spare time, he does a little acting in films. All this activity would stress many people, but Michael positively thrives on his juggling act. He explains that he grew
design work, and, through his racing, met Larry and Eraldo Ferracci. A conversation at the racetrack led to him moving to Pennsylvania for a position as art director with the Fast by Ferracci team. Michael moved back to California in 2000 and helped launch the Hotwire discount travel website that year. His Mojotown creative services agency had been started as a part time venture in 1998, and went to full time in 2001. The agency specializes in Web design and corporate identity for small to large business as well as motorsports marketing for companies. The ad agency was (and is) doing well, but Michael has always been
up in Indianapolis and was inspired by the sights, smells and sounds of racing at the Speedway. Moving to California, he started racing motorcycles at Sonoma Raceway (also known as Sears Point) and working for the San Rafael Yamaha motorcycle dealership. Michael had done quite a bit of
fascinated by the idea of opening his own dealership. Fast forward to 2009, when the idea of a parts and accessories store became a new focal point. “Find a hole and fill it,” is an old retail slogan. In Michael's case, the hole was the lack of a nearby place
38 May 2014 | Motorcycle & Powersports News
to buy tools, parts, helmets, boots and gloves. Michael was getting tired of having to travel to San Francisco to buy gear for his racing effort, and assumed that if he was being inconvenienced, that many motorcycle enthusiasts in the area were being inconvenienced, too. Mojotown Motorcycle Gear store was launched five years ago at a location near a freeway. This location was not what Michael wanted on several levels, and he moved to his present premises about a year and a half ago. The store is now on a major shopping street in an upscale area. One of the major incentives to rent the space was a large parking lot available to the customers. Parking is difficult in this area, as in most urban areas, with ever-present parking meter enforcement, and the parking lot takes stress out of the shopping experience. “The parking lot is trailer-friendly,” he notes. “We have race teams coming through to buy stuff, and they can drive in with their trailers.” Another reason why Mojotown moved to the present location was the look of the store. “This place has high ceilings that give it a gallery feel. I wanted people to
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Mojotown Motorcycle Gear Shop 1417 4th St. San Rafael CA 94901 (415) 457-6656 www.mojotowngearshop.com u Open 5 years u Three employees u Used and consignment
motorcycle sales u Aftermarket: AGV, Alpinestar,
Arai, Gaerne, Motul, Motorex, Roland Sands Designs, Scott, Shoei, Sidi, Troy Lee Designs, and Vanson Leather
feel the motorcycle culture. I wanted a homey, comfortable feeling that would be different from most motorcycle stores.” Mojotown sells boots, helmets, accessories, OEM and aftermarket parts, specialty tools, racing oil, clothing, and motorcycle related art, as well as used consignment motorcycles. If something is not in stock, it will be cheerfully ordered, with overnight delivery available for many items. The selection of items the store offers is chosen with the intention to cater to all motorcycle enthusiasts and provide something for everyone. When Michael first went into business, he also offered service on motorcycles, but quickly discontinued it. “Service opens too many issues,” he says. “I am surprised at the random lot that comes in the door. Our clientele has evolved slowly, but it is now about half street and half dirt riders. There are a few cruisers and Harley guys. With the new location, we get increased foot traffic, and a lot of street riders. We get a lot of kids, too – there is a used kids clothing place nearby, and when mom is shopping there, guess where the kid is!” “This location gives me an outlet for reclaimed motorcycle art. Non-riders will walk past the store and see something in the window that will make a great gift for someone. This location is also more femalefriendly, and I have sold more stuff to women in one year at the present location than in three years at the old place.” The store is relatively small. Despite its artistic look, it is actually very carefully laid out to display the maximum amount of product that can be shown without making the space look crowded. Merchandise is displayed on different
levels, there is a tiny try-on area with large mirrors and chairs, and art for sale is attractively arranged on the walls. “I try to run an efficient shop. Much of our stuff is available on order. If we see a demand, we start stocking the items. We want to be a miniaturized better version of the large accessory shops, with unique merchandise and more individuality.” Advertising is mostly word of mouth. Mojotown sponsors racers and track days, and has a lot of support among the large local road racing and off road competition communities. Michael has, of course, designed his own website, which takes advantage of new technology to feature maximum understandable content in a minimal space. Featuring a constantly shifting home page, the idea is to engage the reader as much as possible. The website has constantly updated racing news, photos and information on the consignment motorcycles, and alerts to the latest products from Mojotown's suppliers. Cartoons (designed and sketched by Michael and completed by his artists) add a touch of humor. The shop's Facebook page is also constantly updated. Michael and staff check email and the different on line rating sites on a regular basis, adding comments and contacting the few customers who have complaints. “We try very hard to take the highest road possible.” The result is excellent online ratings. “Retail can be a nightmare, but I have deep relationships with the motorcycle culture on a pro level. I have a concept of mixing business with pleasure, and it is working. We are enthusiasts, and it is always fun to be here.” t
MotorcyclePowersportsNews.com 39
40-42 DMS Feature_Layout 1 5/7/14 9:58 AM Page 40
By Greg Jones
P
icture yourself in this scenario: You’re working behind the counter of a fast food restaurant, but you don’t have a register or system in place to take orders. Menu items, price, stock quantity, communication tools and accounting are no longer at the push of a button. Your only option is to take out a piece of paper and write it all down manually. This is quite time consuming and inefficient to say the least. This scenario is what some industry experts relate to a dealership operating without a dealer management system (DMS). While a dealer management system is much more robust than a fast food register, the idea is similar. A DMS is software that connects all the departments of your dealership together and allows your business to function with more efficiency and productivity while also giving you performance reports and opportunities to maximize profits. Not all DMS are created equal, however. In theory they aim to accomplish similar tasks for a dealer, but in practice each one varies in its scope, capability and depth within a dealership’s operation, and for good reason – not all dealerships are created equal, either. DMS are not new to the powersports industry. In fact, they have been around a while and dealers themselves have been responsible for making these offerings more robust and its capabilities farther reaching. Continuous
40 May 2014 | Motorcycle & Powersports News
innovation and technology trends among DMS providers keep pushing the envelope in this market, making it nearly impossible for dealers to ignore the benefits of these systems any longer. Out with the Old, In with the New “How dealers were doing it before with just paper tickets is very, very old,” says C.R. Gittere, owner of Service Manager Pro. “I think not having a DMS in place to operate your business devalues your company’s potential by a lot of zeros. That is the biggest drawback to not having a DMS.” A DMS enables the dealer to track the performance of each department and the dealership as a whole at any point in time. It also collects and stores data, which allows the user to reduce the time needed to perform daily functions such as repair, order entry, billing, invoicing, etc. Since each department is in some way dependent on other departments within the dealership, having one central dataset for each to share means you can get a complete picture of the customer value proposition throughout the store. With a fully utilized DMS, you not only can do the dayto-day operations, but you are capturing and retaining data that can help you spot trends, market to your customer base and budget and forecast for growth.
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Having a DMS that allows you easy access to the data and provides built-in reporting capability will streamline your day and help your personnel be more efficient and effective. With today’s dealerships comprised of as many as five operating departments – new unit sales, used unit sales, finance, service and parts, garments and accessories (PG&A) – there’s a lot for a DMS to keep track of. “One of our main strengths is that we cover all the modules of the dealer in a very integrated fashion,” says Greg Smith, vice president and general manager, ADP Lightspeed. “Whether it’s sales, service, parts, accessories and accounting, all those work together in a very seamless fashion. Where Lightspeed is head and shoulders above most folks is the integrated accounting, the way transactions are seamlessly posted to accounting, the financial reporting it can give you, and all the ways it can help improve profit.” Accounting and managing profitability is becoming very important for dealerships to be able to survive and prosper, and that’s where ADP has put its focus. On the other hand, Dominion Powersports Solutions’ DMS known as DX1, focuses on integrating marketing aspects of a dealership. “The few things that make DX1 unique is No. 1 being that overall business management platform,” says CJ Pedler, director of customer support, Dominion Powersports Solutions. “Instead of the traditional DMS having been focused on the operations aspect – the parts, sales, service, accounting and the reporting of all of that – DX1 certainly brings all of that in, but then it goes into marketing and customer relationship management (CRM) to expand upon the idea of what a DMS is.” According to Pedler, the marketing and social media aspect of DX1 works like this – if somebody was checking out a dealer’s bike on Facebook, Cycle Trader or on your website and they entered their information to say they’re interested in buying the bike, DX1 will pull that information from the end user into the system so you can start the lead management process. Whether they end up buying the bike or not, all their information will already be in the system the next time they
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come into the dealership. Easy information is the name of the DMS game, and ADP Lightspeed, DX1 and others such as Brainstorm, Commander and nizeX, offer dealers functionality in sales, service and PG&A. However, a full-blown DMS has so many dealer aspects to track that it’s nearly impossible for these systems to offer the best solutions for individual aspects within a dealership such as service and parts. Solutions such as Service Manager Pro’s Spec Link Technology or ARI’s PartSmart and AccessorySmart, work along with a DMS to enhance aspects of a full system. “We specialize in the service department and developed a technology called Spec Link Technology that links up fluid levels and tightening torques to part numbers; part numbers, fluid levels and tightening torques to services; and fluid levels, tightening torques, part numbers and services to standard jobs,” Gittere says. “Spec Link Technology won’t just tell you what you should do to a 5K service, it also tells you what’s required to do that service. It answers the entire question. The speed in which things get done compared to what it was before my system came out is the equivalent of going from a bicycle to a GSXR 1000.” ARI’s product offerings also enhance how a DMS can benefit a dealer. “DMS is fantastic for purchase orders and all the tactical accounting elements, but the one
place where they don’t have quite as much information is what product or part do you need,” says Brad Smith, vice president of products, ARI. “That is where our product solutions plug in really nicely.” A DMS will often have part numbers preloaded or the dealer goes in and adds all of that, but it’s flat
information. ARI’s software helps fill in that gap. “When you connect PartSmart you can see your current in-store availability like quantity on hand, bin location and price for any given part,” says Smith. “You can also build a pick list if you need several items. Once you’ve identified the parts you need you don’t have to re-key those into your DMS, it is already done for you.” ARI’s AccessorySmart does a very similar thing, but it does all of that for the PG&A world. “AccessorySmart is a very dynamic electronic catalog that operates like Amazon,” Smith says. “You punch in a make, model, year and see every product that will fit that.”
Trending Up Dealer management system companies are always looking to improve the in-store experience for a dealer and subsequently the customer. The trends today in the DMS market surround hosted offerings such as cloud or web-based DMS. “About 40 percent of our dealers now are hosted in the cloud,” says Greg Smith. “It wouldn’t surprise me if we were 80- 90- or 100 percent hosted in the next couple of years because it’s so much easier for the dealer.” The cost of implementing servers can run a dealer upwards of $20,000 to $30,000. A cloud-based or a web-based
Continued on page 45
42 May 2014 | Motorcycle & Powersports News
43 Sevice Manager 5/7/14 9:57 AM Page 43
THE
Service
MANAGER
By C.R. Gittere
How Much Does Price Really Matter? Creating Customer Experience in the Service Department
W
ell it’s that time of year again, when most of the country is starting to fire up their bikes to get the season started. It’s also the time of year when service departments get a mix of street, snow and off-road business. Watching a service department during the first few weeks of spring is fun because everyone is buzzing about like bees on crack. Every year around this time I get the same phone call from a spun out manager. They always ask me how much they should charge for an oil change, a primary oil change or a tire change. I always answer the question the same way, too: does the price really matter? Then the awkward silence begins the kind where you know the other person on the phone did not get the answer they wanted and they think you’re trying to play some stupid mind game. I guess I look at things a bit differently, so this seemingly simple question always turns into a philosophical discussion. I think there are two different philosophies to service work. Both ways will make you money, but they are just different approaches. Service is work usually priced by what the local market will bear, right? Customers will shop you to save a penny on the oil change or tire change so you need to offer the lowest prices on the block, right? I mean after all, most people in this industry like racing so why not get into a race to the bottom? This price scenario may work, but it requires a laser-like focus on the upsell opportunities that might be created. Your whole service and parts team need to be on board to make this a win for your dealership. This is probably the hardest
way to go about getting true profitability, but it can be done. The dollars will be turned but the profit will be less than it could be. The drawbacks are every single misstep will have huge ramifications on your profits because your margins are so thin. I used to sell paper to commercial printers throughout the southeast. The paper I was selling was white just like all my other competitors. There was nothing special about it and everyone had it. I had an old grumpy sales manager that would stand over my shoulder and listen
to my sales calls and approve or deny my orders. It seemed like he controlled my paycheck by how much he drank the night before. However, he taught me something that has made me more money over the course of my life than anything else. He said, “C.R., you have three things you can sell around here, best price, best delivery time and best quality of product. If you ever try to submit an order with all three of those I will fire you on the spot. You only need to have two of the three, and since you are paid on a gross profit commission structure pick the two you want.” Think about this when you buy something; if
you want it right now do you really care if you can get it cheaper on Amazon? Why do you think some of the scooters that are sold under the tent outside the flea market are priced the way they are? I think of the service department like my old paper company. The quality of product is based around the quality of work your tech does and the feeling your customers get when they deal with your service staff. Do they feel like they are treated like rock stars or cattle? Do you wash the unit when you are done or just send it out the back door and move onto the next one? The delivery time is how fast you can get the bike serviced and the customer back down the road. Is your staff faster or slower than the competition? So if you concentrate on having the best service staff and the best delivery does the price really matter? Customers will pay more for fast, first-class service. It all boils down to what your philosophy is. Making a quick, easy dollar or working the market and making the long, slow, bigger dollar. The second philosophy will take a while, but making a profit will be easier in the long run, and your customers will be more loyal and the upsell opportunities will be easier to capture. t
C.R. Gittere and the Service Manager Pro team specialize in service department efficiency, elevating customer service and increasing department profitability. His monthly column focuses on best practices and unique ways to get the most out of your service department. More information about Service Manager Pro can be found at www.servicemanagerpro.com. MotorcyclePowersportsNews.com 43
44-45 Dealer Management 5/7/14 9:57 AM Page 44
Dealer MANAGEMENT SOLUTIONS
By CJ Pedler
The Importance of Pennies and Nickels It Pays to Examine Two Key Components of Your Operations
I
n a brisk economy, eyeballing the little impact they can have on a parts from the store vs. buying online? The top things seems trivial. Almost miserly. department’s bottom line. reasons, according to a 2013 Columbia In our economy, it’s downright smart. Escalators can be a tricky thing, Business School study include customer As you and your staff accelerate your especially in a retail climate as service and return policies. Does your parts spring and summer plans, it pays to transparent as ours. “Didn’t I just see that sales staff mention your consumer-friendly examine two components of any helmet online for $10 less?” return policies when they’re asked why this successful parts and accessories Sound familiar? It certainly does to helmet costs $10 more than online? operations: your escalators and rounders. many of us who use escalators more “Yeah, it’s a few bucks more, but our Please note: The time you invest to liberally on lower-cost, must-have OEM return policy is terrific and you can wear examine these parts of your business hard parts than the more expensive it home today.” won’t result in a sudden landslide of new accessories and garments. It’s not The #1 reason for not buying online revenue. Hardly. In fact, these two areas uncommon to hear dealers dropping when a consumer is in a retail shop? The of your business equate to the old spare escalators from products over a certain “now” factor. They can take it home right change bottle sitting in my closet. here, right now. Most of the time, it’s almost Consider driving those points meaningless. It collects pennies home before you drive escalators out “Does your parts sales staff here, nickels there. But after a few of your parts department revenue. mention your consumermonths, it becomes something. For Also, don’t end this task with me, it becomes a family outing. For simply examining and possibly friendly return policies when you and your version of the updating your escalators and they’re asked why this helmet rounders. Turn this measured “escalator” change jar, it can become a significant expenditure revenue addition into measured costs $10 more than online?” from seemingly insignificant savings. progress for your dealership. Vow to Bottom line, it produces take whatever revenue comes from something meaningful. That’s critical in dollar amount. Sometimes it’s $100. these moves and put it to good use, like this economy. Sometimes it’s half that. upgrading your business software. But first, you have to be willing to Interestingly, we drop escalators We still know too many small take in the pennies and nickels through because of our real fears that consumers powersports operators who work without your escalators and rounders. will price-shop us on our showroom floors. a dealer management platform. Dealers For those of you who haven’t taken This is happening today nationwide, and who use those systems swear by them the time to do this lately, a reminder you can bet it’s only going to accelerate in because they provide such a thorough about these important tasks: the years to come, especially on more analysis of store profitability. • Escalators: These call for pricing a expensive items. How should you react? Through effective escalators and part, garment or accessory above MSRP Should your escalators continue to recede rounders, you can make those pennies by a measured amount, say 5, 10 or even into the background, becoming and nickels count for something. t 15 percent. Often this is done on less something for products that are so cheap CJ Pedler is the director of customer expensive items. that they’re not worth price-shopping? support for Dominion Powersports • Rounders: These are often viewed as Ultimately, what you decide to do with Solutions, the provider of DX1, the industry’s a “Wal-Mart” strategy because every price your escalators needs to reflect your only end-to-end business management ends with a “9,” like a Yuasa battery for an market. What is your competition doing? platform. Pedler has spent more than 15 older FZ600 for $48.99, rather than $48.90. What will your consumer bear? But you years setting up and providing training for Both strategies drive additional also need to adapt to the online shopper dealerships. He can be reached at revenue through measured means. The who happens to be in your showroom. You cj.pedler@dominionpowersports.com. interesting part is just how much of an know what drives an online shopper to buy 44 May 2014 | Motorcycle & Powersports News
44-45 Dealer Management 5/7/14 9:57 AM Page 45
Continued from page 42 system functions off of an Internet connection and eliminates the need for a server. While there is still a cost associated with both of these solutions, the price is minimal in comparison and the offering is superior. “Cloud-based technology is always accessible and always available,” says Pedler. “It’s less expensive, provides a lot of computing power and it takes things out of the dealer’s hands like having to update it or do back-ups.” Another trend within the DMS market is data standardization, which ensures all data, including major units, entering a dealer system is consistent. Without data standardization, units could be spelled numerous ways, creating likely inaccuracies in reporting and additional headaches and inefficiencies for a dealership. With data standardization, unit reports are always accurate and available at the touch of a button. As consumers and dealers alike continue to work on the go, another trend is mobile capabilities. Apps where dealerships can access specific portions of their software via their smartphone or tablet are beginning to be seen. When an employee doesn’t have to serve the customer from a fixed spot in the store, it really opens the experience to be more customer-focused. And lastly, dealerships are realizing how vital an integrated CRM system is to improving their return on investment for marketing. “CRM is another tool to help dealerships increase profitability and productivity,” says Joy McClanahan, sales manager, nizeX. “I think these products are going to get increasingly more sophisticated to address the needs of a changing market.” With seemingly nothing but upside for DMS, there are still dealers who have doubts about them – One big reason being the upfront cost. “Dealers are going to have to make an investment,” Pedler says. “Once you get past initial cost and explain to a dealer all the places they’re going to save time and that time equates to money, it’s really all upside. On average, a DMS with the capabilities of a DX1 can save a dealer around 800 hours or 80 business days a year.” There is no doubt a DMS is an investment, but there are very tangible returns if you get a feel for how to correctly deploy it. Dealers can no longer argue the impact of a DMS. t MotorcyclePowersportsNews.com 45
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BEST
Operators CLUB
By Steve Jones
March PG&A Department Performance
I
n the first chart (Chart 1) we see some promising numbers. Total store sales are up over last year as are gross profit margins. We also see that the parts, garments and accessories (PG&A) department represents a very significant portion of the total store gross profit. In the case of the Top 5 dealers, it makes up more than 40 percent. The number of door swings (from door swing counters) and logged contacts have both decreased for the group and the National Norm averages. Note that both lost almost 3 percent more in working contacts than in door swings. This could indicate a lack of effort in logging contact information. However, the Top 5 are still improving on both door swings and working contacts. Regardless of the size of your dealership, you can compare your gross profit dollars per employee with this data. One of the biggest factors influencing this number is the quality of your staff and the level of training they receive. Good, well-trained staff can make a big difference in your bottom line. More importantly, it makes a huge difference in customer retention. It is always less expensive to keep an existing customer than it is to attract and capture a new one. In the Part 1 chart there is more good news: sales increased for PG&A across the board. In addition, there are strong numbers for gross profit per vehicle sold. Here is a real good example of the difference well-trained staff can make. The Top 5 dealers are selling roughly $500 more PG&A per vehicle sold than the group or National Norm average. Wouldn’t you like to make an extra $500 in gross profit per vehicle sold? Think about that the next time you catch yourself saying; “It costs too much to
CHART 1 Total Store Stats for March 2014 Total Store Sales YTD
GROUP NORM
TOP 5 DEALERS
1.5 mil.
2.2 mil.
NATIONAL NORM 1.9 mil.
Total Store Sales Change from Previous Year
6.6%
19.3%
8.5%
Total Store Gross Profit Margin
22.7%
27.1%
24.3%
Gross Profit Margin for Previous Year
21.8%
25.6%
22.5%
Contribution to Total Store Gross Profit: PG&A Dept.
29.8%
43.1%
25.0%
Logged Working Contacts: Change from Previous Year
-14.0%
32.6%
-2.7%
Door Swings: Change from Previous Year
-11.0%
43.1%
-0.7%
Gross Profit per Employee, YTD
$22,710
$29,864
$28,010
GROUP NORM
TOP 5 DEALERS
NATIONAL NORM
13.0%
31.0%
4.0%
Total PG&A Gross Profit Per Vehicle Sold
$871
$1,387
$759
Parts Margin
34.8%
39.2%
33.2%
Clothing/Access. Margin
31.7%
35.3%
30.6%
Personnel Exp as a Percentage of Dept. Gross Profit
42.2%
28.7%
40.1%
Change in Dept. Selling Margin from Previous Year
-3.7%
2.8%
-0.8%
CHART 2 PG & A Dept Stats – Part 1 PG&A Sales Change from Previous Year
CHART 3 GROUP NORM
TOP 5 DEALERS
NATIONAL NORM
Invoice Volume Change from Previous Year
-3.2%
10.2%
-0.6%
Operating Profit Change from Previous Year
-0.0%
3.1%
-0.6%
Percentage of Obsolete Inventory
PG & A Dept Stats – Part 2
16.2%
4.2%
7.9%
Parts Inventory Turn
4.7
7.5
4.3
Clothing/Access. Inventory Turn
2.0
2.7
2.6
Average Number of Customer-Facing Staff, YTD
4.0
5.9
4.5
$23,718
$35,100
$25,011
Gross Profit per PG&A Employee, YTD
send them to training…” The Top 5 are averaging 4-5 percent more on margins than the group or National Norm dealers. How do they do that? Do they inflate their prices? Not
46 May 2014 | Motorcycle & Powersports News
likely when today’s shoppers compare everything online. For one thing, they control discounting. A chart we use in our training sessions shows one 20 percent discount sale takes seven
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additional sales at full retail to get CLOSE to the original margin. They also take advantage of pre-season programs offering additional margins. Many dealers minimize suppliers to leverage purchasing power to maximize margins and program benefits. The Top 5 are also doing a much better job of controlling personnel expenses as a percentage of department gross profit. Of course, if you are making more gross profit per person, you are also reducing your expenses as a part of department gross profit. Part 2 shows invoice volume decreasing slightly for the group and National Norm dealers, but up 10 percent for the Top 5. Obsolescence numbers are here, but they are hard to quantify, since we don’t know how much is still “there” but written off of the inventory. Suffice it to say that the “real” percentage should be under 15 percent.
“The Top 5 are knocking it out of the park; showing $10,000 more gross profit per person than the group or National Norm dealers – and this is only through March!” Inventory turns are not bad (this is a 12-month number), but tracking will be more useful once we can get all the dealers on board with measuring clothing separate from accessories. As I have pointed out in the past, the gross profit dollars per employee is a measurement that can be compared by any size of dealer. The Top 5 are knocking it out of the park; showing $10,000 more gross profit per person than the group or National Norm dealers – and this is only through March! Look at your numbers in relation to these as an indicator of staffing levels or needed training. Use these benchmarks to improve your operation. As always, feel free to
contact me if you have questions or need assistance. Email me at steve@gartsutton.com. t
Steve Jones, GSA senior projects manager, 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. Access to our new Voyager 5 data reporting and analysis system is available for any dealership for nominal fee. For more information on our data reporting system, management workshops, dealer 20-groups, on-site consulting or training, send me an email at steve@gartsutton.com or visit www.gartsutton.com.
MotorcyclePowersportsNews.com 47
48-49 Product Essentials_Layout 1 5/7/14 9:54 AM Page 48
Deltran Lithium Iron Phosphate Engine Start Batteries Battery Tender’s line of Lithium Iron Phosphate (LifePO4) batteries are designed to replace flooded, AGM, and Gel Cell lead acid batteries in powersport applications such as motorcycles, ATVs, personal water craft, lawn mowers, utility vehicles, scooters, and dirt bikes. Features and benefits of the DelTran lithium batteries include: 80 percent lighter than lead acid equivalent, 18-month shelf life, 5x the life of a lead acid battery, lithium batteries do not sulphate, can be mounted in any direction, 3-Year Limited Warranty and Quad Terminal Configuration for ease of installation. ------------
For More Info: www.batterytender.com
Namura Technologies Top End Repair Kits Fitting 2010-2014 Kawasaki KX250F. Namura says it has what you need at a price that can’t be beat. Everything they make is meticulously crafted to OEM specifications, so you can be sure your new parts will be a perfect fit. Namura Top End Repair Kits include a piston, top end gasket and a bearing if required, all at a special price starting at $182.93 ------------
For More Info: www.namura.com
48 May 2014 | Motorcycle & Powersports News
48-49 Product Essentials_Layout 1 5/7/14 9:54 AM Page 49
Liberty Sport MagTraxion Technology Sunglasses MagTraxion Technology Sunglasses by Liberty Sport are designed to keep out the elements and keep riders on the road! Convert fashion sunglasses to high-performance sport riding sunglasses in seconds with the patented MagTraxion magnetic technology. These comfortable, quick and removable magnetic eyecups provide maximum peripheral coverage and still look like a killer pair of shades. Eye protection is essential equipment for many riders and Liberty Sport delivers with over 80 years of optical success. Superior optics and premium lightweight frames provide exceptional comfort and performance. ------------
For More Info: www.libertysport.com
ASA Electronics Jensen HD1BT Radio The JENSEN HD1BT is the first true replacement radio custom designed to fit into a Harley-Davidson without requiring any special mounting kits or brackets. The true plug and play design means the factory harness plugs directly into the back of the JENSEN radio and works with the factory handlebar controls. The IPX6 waterproof unit has an impressive 50 x 4 watts along with a host of innovative features including Bluetooth streaming audio, AUX input, SiriusXM-ready and Weatherband. This is an excellent upgrade for any Harley-Davidson that will keep riders smiling for years and miles to come. ------------
For More Info: www.asaelectronics.com
MotorcyclePowersportsNews.com 49
50 F&I_May_Layout 1 5/7/14 10:03 AM Page 50
&
Finance Insurance
By Steve Dodds II
Managing ‘Right-Brained’ People with ‘Left-Brained’ Tasks
W
hy is it that at every dealership I I have learned more about managing intuitive, thoughtful and subjective. Leftvisit and every workshop I host I people from raising my four children than brained people tend to be more logical, hear the same types of complaints: “My I ever imagined. When you have a small analytical and objective. When we ask a salespeople won’t …” Or, “I have to child, it is easy to see that when you treat right-brained salesperson to be thorough check behind my salespeople because them a certain way, you are training them when completing their paperwork, they they can’t …” Or, “My salespeople to expect this treatment. It can be less might have a problem completing this forget to …” Or some other variation obvious when you are working with an task because they are having to work along this line? against their nature. Yet, when you fly, a smiling So, how do we hold them acflight attendant will always greet countable without expecting you on every airline. You always them to be what they are not? Left Brain: Right Brain: hear the exact same safety The middle ground that I think •Logical •Random briefing. At 10,000 feet, you will works the best is to have the •Sequential •Intuitive always hear a beep followed by salespeople get the information •Rational •Holistic a flight attendant letting •Analytical •Synthesizing that you expect them to handle. everyone know that they may •Objective •Subjective Immediately – this is key – use larger electronic devices. •Looks at •Looks at immediately you should check parts wholes over the complete form. If there is How is it that the aviation industry can achieve a kind of anything missing, bring it to your consistency in routine that the salesperson’s attention and let motorcycle industry cannot? them know that you will get the At first, I entertained the information this time, but it is their adult, but the training works the same. If fact that the people who were hired as responsibility to do it next time. The you do a certain aspect of a person’s job, flight attendants were smarter or more finance manager then meets the customer they will start to expect you to do it from easily trained than the average on the sales floor for their first meet-andthen on. Don’t fall into this trap. salesperson. After really examining this greet and gets the missing information If you expect your salespeople to get hypothesis (as intriguing as it was to from them. You can find the complete trade miles, stock numbers or the entertain, as I too was a salesperson article about the importance of meeting customer’s full legal name, then they when I started in the industry), this did every customer on the sales floor here: http://tinyurl.com/keemcfy. t need to do it. While it may be easier to not make sense. So why is this? do it for them, again, I caution you NOT In most cases, it comes down to two Steve Dodds II is a moderator, trainer to fall into this trap! different forces at work: nurture and nature: and consultant for Gart Sutton and 1) A lack of accountability (nurture) Associates with experience in every Nature 2) Geography of most salespeople’s position in the sales and finance departYou may have heard in the past that brains (nature) certain sides of the brain manage specific ments. Dealers rave about his ability to identify areas for improvement and brain functions. In general, people tend Nurture implement the changes that produce to be either “right-brained” or “leftI was a finance manager for 10 years and superior results. If you have questions brained.” This simply means they use can understand that sometimes it is just about what he or one of our other either their right or left side to do the easier to do it yourself. What you need talented consultants can do to help you majority of their thinking. Most good to ask yourself is, “What does that teach meet and exceed your goals, contact us salespeople are “right-brained.” What the salesperson?” at info@gartsutton.com. this means is that they tend to be more 50 May 2014 | Motorcycle & Powersports News
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TECH
Tips
Cyclepedia Press LLC
Diagnosing Yamaha’s EFI Self-Diagnostic Systems
F
or years now technicians and educated vehicle owners have enjoyed the benefits of the selfdiagnostic functions of fuel injection systems. Evaluating fault codes is now a standard task in powersport vehicle service. Some fuel injection systems have expanded onboard diagnostic abilities that can be used to troubleshoot issues in addition to the simple fault codes.
Cyclepedia.com recently produced online service manuals for the Yamaha Raptor 700R sport ATV and WR250R dual sport motorcycle. These models, along with many other recent Yamaha vehicles, have a diagnostic mode that can be activated with the multifunction display. This diagnostic mode goes beyond just being able to read fault codes – it can operate sensors and actuators to troubleshoot the vehicles components and circuits. Like most fuel injection systems, the ECU can detect and store fault codes if it detects something amiss. Once the code has been expressed, the next step is to check the fault code number against the diagnostic trouble code (DTC) table to identify the suspect malfunction. The DTC table provides the symptom and probable cause of the fault code; all pretty typical so far for fuel injection troubleshooting. What’s new is a diagnostic code number that is provided with each relevant fault code.
diagnostic mode, the multifunction display will show a numerical value to indicate the throttle position. The sensor operation table has specific ranges for this throttle position number at throttle open and closed positions. The TPS and its circuit should be inspected in greater detail if the indicated number is outside of the specified range. This type of troubleshooting data analysis has typically required the connection of a special tool to the
vehicle. Having this type of technology onboard is a huge advantage in that no expensive special tools must be purchased, and the diagnostics can be performed anywhere as long as one has access to the correct information. Note, the 2006 – 2008 and 2013 and newer Raptor 700 models do not have an LCD multifunction display, and they still require a special tool to use the diagnostic mode.
Yamaha uses a diagnostic mode that can be accessed with the multifunction display
The fault code is the detected
problem. For example fault code 15 is a faulty throttle position sensor/circuit. Its diagnostic code is d01. The diagnostic code is the code used with the diagnostic mode to troubleshoot the particular item. Consult the sensor/actuator operation table in the service manual for more information on using the specific diagnostic codes. When d01 is activated in the
Inspect a faulty TPS with the diagnostic mode
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In addition to sensor troubleshooting the diagnostic codes can also be used to operate circuits and actuators to check system functions. Want to know if the radiator fan motor circuit is functional? Select the d51 diagnostic code to actuate the radiator fan motor relay repeatedly. This should cut the fan on two seconds, off for three seconds and repeat this cycle five times. If the fan or relay fails to operate this indicates a problematic component or circuit that needs to be inspected further.
Electrical circuits can be activated and checked with the multifunction meter.
The diagnostic mode can be used to operate sensors and actuators.
The system can operate the fuel injector, fuel pump relay, ignition coil, EXUP valve and others all with the multifunction display. One only needs to have the information to use the diagnostic mode and be able to interpret the results. No special FI tool needed, and no need to pick up a multimeter until one has allowed the vehicle to diagnose itself. t
Cyclepedia Press LLC authors powersports service manuals, a specification database and training modules to help technicians efficiently service ATVs, motorcycles, scooters and side by sides. Each month Cyclepedia examines real life shop scenarios with recommended tech tips for handling the problems encountered. For more information about Cyclepedia manuals and professional products visit www.cyclepedia.com.
Color Ads Were Rare Even more rare was the use of color in an editorial ad. That’s how important it was.
In July 1974, MPN was just a baby and so was the yearly trade directory that we now call the Buyer’s Guide. It’s still just as important today. In fact, it’s not too early to start thinking about the 2015 edition. If you haven’t updated your listing since ’74, now is the time to log on to our website and give us your new information. And, it’s still free. http://bit.ly/PUMgVU 52 May 2014 | Motorcycle & Powersports News
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MarketPlace Same Day Shipping • Huge Inventory
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909-350-2727 888-258-0369 TO ADVERTISE IN CLASSIFIED MARKETPLACE CALL Roberto Almenar 330-670-1234 ext. 233 ralmenar@babcox.com
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Ad Index ADP Lightspeed . . . . . . . . . . . . . . . .37 Amsoil Inc . . . . . . . . . . . . . . . . .Cover 2 ASA Electronics . . . . . . . . . . . . . . . .42 Bendpak . . . . . . . . . . . . . . . . . . . .25, 41 Deltran/Battery Tender . . . . . . . . . .53 Duro Tire/Wheel . . . . . . . . . . . . . . . .27 EarthX . . . . . . . . . . . . . . . . . . . . . . . .32 EMGO International . . . . . . . . . . . . . .9 Fulmer Helmets . . . . . . . . . . . . . . . .49 Johnson Controls . . . . . . . . . . . . . . . .5 Kuryakyn . . . . . . . . . . . . . . . . . . . . . . .3 Kymco USA . . . . . . . . . . . . . . . . . . . .31 AIMExpo . . . . . . . . . . . . . . . . . . . . . . .29 Mattracks, Inc . . . . . . . . . . . . . . . . . .41 Maxxis International - USA . . . . . . .26 MBA Insurance . . . . . . . . . . . . . . . . .47 Motor Trike . . . . . . . . . . . . . . . .Cover 3 MTA Distributing . . . . . . . . . . . . . . . .13 Namura Technologies . . . . . . .10 & 11 National Powersport Auctions . . .card Redline Synthetic Oil . . . . . . . . . . . . .8 Rizoma USA . . . . . . . . . . . . . . . . . . . . .7 Scorpion Sports Inc. . . . . . . . . . . . . .21 Service Manager Pro . . . . . . . . . . . .48 Sudco International Corp . . . .Cover 4 Sullivans Inc . . . . . . . . . . . . . . .18 & 19 Vee Rubber America . . . . . . . . . . . .23 Vega Helmet Corp . . . . . . . . . . . . . . . .1 Wizards Products/RJ Star Inc . . . . .34 XY Powersports . . . . . . . . . . . . . . . .35 Yuasa Battery Inc . . . . . . . . . . . . . . .15 Zep Inc. . . . . . . . . . . . . . . . . . . . . . . .45 Zurich . . . . . . . . . . . . . . . . . . . . . . . . .33
MotorcycleAndPowersportsNews 55
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VARTA Powersports Batteries Sponsors Jagged X Racing Team VARTA AGM powersports batteries has announced its co-sponsorship with the Jagged X Racing Team for the 2014 racing season. Jagged X Racing will be participating in five UTV competitions with the SCORE World Desert Championship series and six off-road races in the Best in the Desert series. “We are excited to team up with VARTA powersports batteries. We are here to win races and need to have the most reliable battery available on the market,” said Bill Schueler, Jagged X Racing team owner. “The VARTA powersports battery is winning all the vibration, performance and torture tests we have thrown at it while racing in the desert.” “We are proud and excited to be associated with this championship winning UTV racing team, and looking forward to a winning season,” said Doreen Lucht, VARTA powersports product manager. t
Suzuki MotoGP Team Tests in Texas The Suzuki GSX-R has always been about race-bred performance for the street. With its recent test at the Circuit Of The Americas (COTA) in Austin, Texas, Suzuki reinforced that message by showcasing 2014 Suzuki GSX-R1000 sportbikes alongside Suzuki GSX-R race bikes that compete on national and international circuits. Following round two of the MotoGP race series held at COTA, April 13, Suzuki held a track test for the Yoshimura Suzuki Factory Racing team and its GSX-R1000 fleet competing in the AMA Pro Superbike series, as well as the Suzuki MotoGP racing team as it develops its allnew race bike for the elite international
series. Built around an inline four-cylinder powerplant, like that in the Suzuki GSX-R, the new MotoGP race machine will help Suzuki promote its proven “Own The Racetrack” message worldwide. The entire Yoshimura Suzuki Factory Racing team – including racers Martin Cardenas, Roger Hayden, and Chris Clark – attended this test to ride their GSX-R1000s equipped for AMA Pro Superbike competition. Also on the track were Suzuki MotoGP test riders Randy DePuniet, Nobuatsu Aoki, and Austin resident and special guest test rider Kevin Schwantz. Schwantz is preparing to compete in July’s Suzuka 8 Hour endurance race in Japan, riding for the Yoshimura Legends team along with racer Satoshi Tsujimoto,
56 May 2014 | Motorcycle & Powersports News
former Japanese Superbike Champion. The Suzuki MotoGP bike is scheduled to enter the 2015 race schedule. t Sign-Up for AMA Vintage Motocross National Championship Series Racers can pre-register now for all rounds of the AMA Vintage Motocross National Championship Series, presented by Cernic's Racing. The seven-round series includes rounds in Ohio, Illinois, Michigan, Kentucky and Indiana. “It's exciting to watch the vintage motocross series grow and improve," said AMA Motocross Operational Coordinator Alex Hunter. "Not only is online registration up and running, but we have Cernic's Racing on board as a series sponsor, and several new venues are on the 2014 calendar." Jeff Cernic, owner of Cernic's Racing in Johnstown, Pa., is not only sponsoring the series, but he's also a vintage racing enthusiast, with more than 100 vintage motorcycles of his own.
"It makes sense for Cernic's Racing to be involved with the AMA Vintage Motocross National Championship Series with our long history of involvement in motocross," Cernic said. New rounds for 2014 include Sunset Ridge MX in Walnut, Ill.; Russell Creek MX in Greensburg, Ky.; and Mammoth East in Paoli Peaks, Ind. Rules, schedule updates, class requirements and online entry links can be found at: americanmotorcyclist.com/ vintagenationals.aspx. t
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