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MAY 2012
V O L . 4 8 . N O . 5 M AY 2 0 1 2
DEALERNEWS.COM
ADVENTURE TOURING OVERVIEW • DUCATI/TRIUMPH NEWPORT BEACH • KEVIN FREIBERG INDY RECAP
ADVENTURE TOURING
BOOMING SEGMENT IS A JACKPOT
FOR AFTERMARKET SALES
SPRING HAS SPRUNG
EARLY THAW LEADS TO JUMP
IN SEASONAL SALES
PARTS = PROFIT
HOW TO MAKE YOUR
PARTS COUNTER START
GENERATING THE GREEN
LEFT COAST
LOVE
DUCATI/TRIUMPH NEWPORT BEACH
CAPITALIZES ON LIFE IN THE O.C.
www.dealernews.com
For more information visit www.Dealernews.com/readerservice
COM
#M1TWOBOOT
AVAILABLE
MARCH 2012
MSRP
$144.95
CONTOURED LOW PROFILE
THERMOPLASTIC TOE BOX
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OF HIGH PRICED PROTECTION. SAFETY SHOULDN’T COST YOU AN ARM AND A LEG, THESE BOOTS WON’T EITHER.
VOL. 48. NO. 5 MAY 2012
CONTENTS
12
DEALER LAB — FEBRUARY NET INCOME TRIPLES FROM ONE YEAR AGO
Used inventory still not being replaced fast enough, owner says
by Joe Delmont
MANAGEMENT
14
COVER STORY —
LOCATION, LOCATION, LOCATION
Ducati/Triumph Newport Beach is a perfect mix of site,
brand and service
by Bruce Steever
22
HOW TO GET OUT OF YOUR OWN WAY
Indy’s keynote speaker on the incestuous nature of the
industry, and what dealers can do to stop feeling like
economic victims
by Holly Wagner
SALES
26
DEALERS JUMPSTART THE 2012
MOTORCYCLE SEASON
Warmer-than-usual weather has fostered earlier-thanusual sales. But will it matter? by Arlo Redwine
30
OVER THE RIVER AND ... TO THE OFFICE?
Look to the aftermarket for the full picture in the
adventure-touring trend by Dennis Johnson
36
RISE OF THE AMERICAN SPORTBIKE?
Motus Motorcycles aims for the well-oiled dealer
network with premium sport touring motorcycles
by Dennis Johnson
SERVICE
40
FUEL FOR THOUGHT — DAVE KOSHOLLEK
How to cover yourself in a legal case
Want to lessen your legal risk? Then ‘don’t give it away’
42
TOOLS AND EQUIPMENT
MARKETING
43
SPREADING EURO GOSPEL
Longtime Seattle-area dealer launches show to
spotlight European motorcycle, aftermarket brands
by Dennis Johnson
46
DEALERSHIP UNIVERSITY — ROD STUCKEY
Direct mail, telemarketing still work
Supplement your online marketing with strong offline
efforts
DEPARTMENTS
COLUMNS
5 Questions......................................... 8
ShopTalk ........................................... 11
Advertiser Index/Customer Service .. 55
From the Editor ................................ 10
Dave Koshollek ................................. 40
Dealership University ........................ 46
Rick Fairless ...................................... 56
COVER
MAIN OFFICE
2501 Colorado Avenue, Suite 280
Santa Monica, CA 90404
Ph: 310.857.7500
www.dealernews.com
Brand Director – Kerry Graeber
[email protected]
CONTENT
General e-mail: [email protected]
Content Director – Mary Slepicka
[email protected]
Editor-in-Chief – Dennis Johnson
[email protected]
Senior Editor – Arlo Redwine
[email protected]
Associate Editor – Cynthia Furey
[email protected]
CONTRIBUTORS
Contributing Editors – Joe Delmont, Holly
Wagner
Contributing Writer – Bruce Steever
Columnists/Bloggers – Eric Anderson, Joe
Delmont, Rick Fairless, Dave Koshollek,
Mike Vaughan
DESIGN
Group Art Director – Beth Silva
[email protected]
Photographers – Jeff Barger, Joe Bonnello,
Brett Flashnick, Branimir Kvartuc,
Edward Linsmier, Gary Rohman
Color separations and film produced by Advanstar Communications’ Scanning and Digital Prepress Departments
EDITORIAL ADVISORY BOARD
Eric Anderson, Morris Baker (Family
PowerSports), John Beldock (Erico Motorsports),
Gary Christopher (American Honda-retired), Joe
Delmont, Tom Hicks (Southern California Motorcycles), Dave Koshollek, Bob Ladd (Shenandoah
Harley-Davidson), Nathan Reeves (RevSport!),
Bill Shenk (PowerHouse Dealer Services), Mike
Vaughan, Steve Zarwell (Zarwell and Co.)
Content Submissions – Dealernews welcomes submissions for editorial consideration in print and/or on www.
dealernews.com. All submissions to be considered for
publication must abide by the Advanstar content license
agreement. Dealernews cannot be held responsible for
safekeeping or return of any submitted material. To review
the license agreement, e-mail [email protected].
AUDIENCE DEVELOPMENT/CIRCULATION
Kristine Buckman, [email protected]
Subscriptions, reprints and other requests, see page 55
TOP 100 COMPETITION
For information, visit www.dealernews.com/
top100 or contact Mary Slepicka:
[email protected]
A stone’s throw from the Pacific Ocean, Ducati/Triumph Newport Beach makes the
most of its location in Orange County, Calif. Photo by Joe Bonnello.
2
D E A L E R N E W S . C O M MAY 2012
DEALERNEWS.COM
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up to ONE mile
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or GPS
New voice recognition technology
Works with up to 8 additional G9 users
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BRINGING YOU THE BEST
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For more information visit www.Dealernews.com/readerservice
THIS MONTH @
DEALERNEWS.COM
MANAGEMENT
SALES
SERVICE
MARKETING
DEALER EXPO
SHOP TALK
PRODUCTS
POWERSPORTS GROUP MANAGEMENT
TOP 100
TOP 10 LIST
Corporate Executive Vice President – Danny Phillips
Sales Director – Jim Moore
Brand Director – Kerry Graeber
Brand Coordinator – Jeanne Paloma
ADVERTISING, SPONSORSHIPS AND
E-MEDIA SALES
Last month’s most popular
stories
1. Motus Motorcycles
reveals pricing, specs,
initial dealers
2. ‘Hangtag’ class action suit
gets new trial in California
RISE OF THE MOTUS
On page 35, Dealernews editor Dennis Johnson explores Motus Motorcycles’ inaugural dealer network and the possibility of
another Great American Motorcycle. For the full story, log on
to www.dealernews.com/Motus12.
3. MAG buys Motorcycle
Superstore, aligns it with
J&P Cycles to form mega
Retail Group
4. Dealer says Enough!:
DHY’s Donna Coryell
confronts would-be
thieves behind store
5. Lehman Trikes suspends
operations
Group Sales Director – Jim Moore, 949.954.8400,
[email protected]
National Sales Manager – Angela Gibbs,
815.882.7871, [email protected]
Showcase, Classified and Recruitment Sales –
Megan Russo, 440.891.2713, [email protected]
Sales Coordinator – Christina Anders, 949.954.8428,
[email protected]
Outside the United States:
China – Frances Wang, [email protected]
Germany, Austria, Switzerland, The Netherlands –
Hendrik Schellkes, [email protected]
India – Divya Guliana Khanna, [email protected]
Italy – Monica Tomei,
[email protected]
Pakistan – Muhammad Ayyob, [email protected]
Taiwan – Sherman Ko, [email protected]
UK, Denmark, Norway, Sweden, Finland –
Alastair Swift, [email protected]
MEDIA OPERATIONS
www.AdsAtAdvanstar.com
6. GoGo Gear’s Battishill
jumps into ABC’s Shark
Tank
ESCAPING THE ‘SHARK TANK’
GoGo Gear founders Arlene Battishill and Desiree Estrada
survived the ABC reality show “Shark Tank.” Dealernews talks
with Battishill to get the inside scoop on their experience, of
which you can read a partial transcript on page 10. For more,
visit www.dealernews.com/Battishill.
7. Piaggio unveils new
models, prototypes
bound for North
American market
8. Honda updates scooters
for 2013, announces
returning ATVs
10. Jeremy Cupp wins
GET YOUR NEWS FEEDS FROM DEALERNEWS
Ultimate Builder Custom
Bike Show national
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Dealernews delivers the industry’s breaking news and Web exclusives through email with the DealerNEWS ALERT, distributed
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SHOW OPERATIONS
Vice President-Operations – Tracy Harris
Director of Operations-Dealer Expo – Lorri Monty
MARKETING
Vice President-Marketing – Allison Lombardo
Retail Relations Coordinator – Ryan Adams
www.motorcycleshows.com
For more information on exhibiting/supporting the Progressive International Motorcycle Shows, contact Jim Moore,
director of sales, at [email protected].
CORPORATE HEADQUARTERS
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DEALER EXPO
EXHIBIT SALES
Sales Manager – Peggy Zamberlan
Sales Account Managers – Matt Cavanaugh, Cass
D’Arlon, Angela Gibbs, Patti Ros
Sales Coordinators – Christina Anders, Bonni Finer
9. Industry will sell fewer
new motorcycles in 2012,
MIC says
4
Senior Production Manager – Karen Lenzen
Production Manager — Jesse Singer
NEW PRODUCT OF THE DAY
Each day, Dealernews posts information on a new aftermarket
product that’s just been released so that you get the 4-1-1 within
days of its unveiling (and sometimes before it’s even publicly
announced!). Check out the home page at www.dealernews.com
every day for your daily product “news feed.”
M AY 2 0 1 2
President & CEO – Joseph Loggia, EVP-Finance & CFO –
Ted Alpert, EVP-Corporate Development – Eric I. Lisman,
EVP-Powersports & Vet Groups – Daniel M. Phillips,
VP-Operations (Powersports, Vet, License, Fashion Groups)
– Tracy Harris, EVP Pharmaceutical/Science – Ron Wall,
VP-Information Technology – J. Vaughan, VP-Electronic Media
Group – Mike Alic, VP-Media Operations – Francis Heid,
VP-Human Resources – Nancy Nugent, VP-General Counsel –
Ward D. Hewins
Insurance
Risk Management
Visit
FandIResourceCenter.com
or call 888-265-7524
for more information.
With our Streamlined Selling System®,
increasing your F&I profits
can feel like a drive in the country.
Zurich is here when you need more than just insurance.
We are committed to making it easier for dealerships to earn
the maximum per vehicle retail possible. Through Zurich’s exclusive
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earned an average F&I profit of $864 per vehicle sold—with our top 20%
earning an average of $1,208*. A local Zurich F&I specialist can help you
achieve this same success through our proven income development program.
Here to help your world.
For more information visit www.Dealernews.com/readerservice
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services are not available in all states. *Results based on 2010 data. Results also vary to the extent of sales volume and implementation and strict adherence to sales recommendations. ©2012 Zurich American Insurance Company
HONORING OUR HARLEY-DAVIDSON DEALERS
The Harley-Davidson Motor Company is proud to present and recognize the 2011 Bar & Shield Award Recipients,
and those dealerships celebrating their 25th, 50th and 100th year as a continuously family-owned Harley-Davidson dealer.
P L AT I N U M C I R C L E O F D I S T I N C T I O N A W A R D R E C I P I E N T S ( N AT I O N A L A W A R D )
Mother Road Harley-Davidson
Kingman, Arizona
Red Rock Harley-Davidson
Las Vegas, Nevada
Fort Worth Harley-Davidson
Fort Worth, Texas
Greeley Harley-Davidson
Greeley, Colorado
Cox’s Harley-Davidson
Asheboro, North Carolina
Longhorn Harley-Davidson
Grand Prairie, Texas
Wilkins Harley-Davidson
Barre, Vermont
GOLD CIRCLE OF EXCELLENCE AWARD RECIPIENTS
CENTRAL REGION
Indy West Harley-Davidson
Plainfield, Indiana
Adventure Harley-Davidson
Dover, Ohio
Powder Keg Harley-Davidson
Mason, Ohio
Black Wolf Harley-Davidson
Bristol, Virginia
NORTH PLAINS REGION
Coziahr Harley-Davidson
Forsyth, Illinois
Chi-Town Harley-Davidson
Tinley Park, Illinois
Rawhide Harley-Davidson
Olathe, Kansas
Doc’s Harley-Davidson
of Shawano County
Bonduel, Wisconsin
NORTHEAST REGION
Brothers’ Harley-Davidson
Branford, Connecticut
Harley-Davidson
of Ocean County
Lakewood, New Jersey
Harley-Davidson of Long Branch
Long Branch, New Jersey
Z & M Harley-Davidson Sales
Greensburg, Pennsylvania
SOUTH PLAINS REGION
Mike Bruno’s Bayou Country
Harley-Davidson
Houma, Louisiana
Southern Thunder
Harley-Davidson
Southaven, Mississippi
Wild West Harley-Davidson
Lubbock, Texas
Caliente Harley-Davidson
San Antonio, Texas
SOUTHEAST REGION
Adamec Harley-Davidson
of Jacksonville
Jacksonville, Florida
Capital City
Harley-Davidson
Tallahassee, Florida
Great South Harley-Davidson
Newnan, Georgia
Cox’s Harley-Davidson
of Rock Hill
Rock Hill, South Carolina
WEST REGION
Chandler Harley-Davidson
Chandler, Arizona
Bakersfield Harley-Davidson
Bakersfield, California
Chester’s Reno Harley-Davidson
Reno, Nevada
Lone Wolf Harley-Davidson
Spokane Valley, Washington
Mike Bruno’s Northshore
Harley-Davidson
Slidell, Louisiana
Route 66 Harley-Davidson
Tulsa, Oklahoma
Independence Harley-Davidson
College Station, Texas
Corpus Christi Harley-Davidson
Corpus Christi, Texas
Mancuso Harley-Davidson
Houston, Texas
Beers Harley-Davidson
Vernal, Utah
SOUTHEAST REGION
Peterson’s Harley-Davidson
of Miami
Miami, Florida
Naples Harley-Davidson
Naples, Florida
Harley-Davidson of Ocala
Ocala, Florida
Adamec Harley-Davidson
of Orange Park
Orange Park, Florida
Harley-Davidson of Atlanta
Lithia Springs, Georgia
Ray Price Harley-Davidson
Raleigh, North Carolina
Carolina Coast Harley-Davidson
Wilmington, North Carolina
Colonial Harley-Davidson
Prince George, Virginia
WEST REGION
Superstition Harley-Davidson
Apache Junction, Arizona
Arrowhead Harley-Davidson
Peoria, Arizona
Bobby’s Territorial
Harley-Davidson
Yuma, Arizona
House of Thunder
Harley-Davidson
Morgan Hill, California
Dudley Perkins Company
South San Francisco, California
High Desert Harley-Davidson
Meridian, Idaho
Chester’s Snake Harley-Davidson
Twin Falls, Idaho
Santa Fe Harley-Davidson
Santa Fe, New Mexico
SILVER CIRCLE OF ACHIEVEMENT AWARD RECIPIENTS
CENTRAL REGION
Heart of Dixie Harley-Davidson
Pelham, Alabama
Andrae’s Harley-Davidson
Urbana, Illinois
Harley-Davidson of Bloomington
Bloomington, Indiana
Harley-Davidson of Kokomo
Kokomo, Indiana
Eagle Harley-Davidson
Lafayette, Indiana
Smoky Mountain Harley-Davidson
Maryville, Tennessee
Bumpus Harley-Davidson
of Murfreesboro
Murfreesboro, Tennessee
New River Gorge Harley-Davidson
Hico, West Virginia
NORTH PLAINS REGION
Reiman’s Harley-Davidson
Kewanee, Illinois
Conrad’s Harley-Davidson
Shorewood, Illinois
Calumet Harley-Davidson
Munster, Indiana
Big Barn Harley-Davidson
Des Moines, Iowa
Faribault Harley-Davidson
Faribault, Minnesota
Dillon Brothers Harley-Davidson
Omaha, Nebraska
Rough Rider
Harley-Davidson Minot
Minot, North Dakota
House Of Harley-Davidson
Greenfield, Wisconsin
NORTHEAST REGION
L-A Harley-Davidson
Lewiston, Maine
Harley-Davidson of Baltimore
Baltimore, Maryland
Chesapeake Harley-Davidson
Darlington, Maryland
Heritage Harley-Davidson
Concord, New Hampshire
Bergen County Harley-Davidson
Rochelle Park, New Jersey
McMahon’s Harley-Davidson
Beaver Falls, Pennsylvania
Three Rivers Harley-Davidson
Glenshaw, Pennsylvania
Brian’s Harley-Davidson
Langhorne, Pennsylvania
Appalachian Harley-Davidson
Mechanicsburg, Pennsylvania
SOUTH PLAINS REGION
Renegade Harley-Davidson
Alexandria, Louisiana
New Orleans Harley-Davidson
Metairie, Louisiana
BRONZE CIRCLE OF RECOGNITION AWARD RECIPIENTS
CENTRAL REGION
Rocket Harley-Davidson
Madison, Alabama
Riders Harley-Davidson
Trussville, Alabama
Man O’ War Harley-Davidson
Lexington, Kentucky
Biker Bob’s
Harley-Davidson Motown
Taylor, Michigan
Lake Erie Harley-Davidson
Avon, Ohio
Toledo Harley-Davidson
Toledo, Ohio
Neidengard’s Harley-Davidson
Wintersville, Ohio
Buckminns D&D Harley-Davidson
Xenia, Ohio
Appleton Harley-Davidson
Clarksville, Tennessee
Mike’s Harley-Davidson Sales
Delbarton, West Virginia
Charlie’s Harley-Davidson
Huntington, West Virginia
Harley-Davidson
of West Virginia
South Charleston, West Virginia
NORTH PLAINS REGION
Illinois Harley-Davidson
Berwyn, Illinois
Starved Rock Harley-Davidson
Ottawa, Illinois
Walters Brothers
Harley-Davidson
Peoria, Illinois
Dubuque Harley-Davidson
Dubuque, Iowa
Bergdale Harley-Davidson
Albert Lea, Minnesota
Zylstra Harley-Davidson
Elk River, Minnesota
Mankato Harley-Davidson
Mankato, Minnesota
Worth Harley-Davidson
Kansas City, Missouri
Doc’s Harley-Davidson
Kirkwood, Missouri
Frontier Harley-Davidson
Lincoln, Nebraska
Stutsman Harley-Davidson
Jamestown, North Dakota
Rough Rider Harley-Davidson
Mandan, North Dakota
Black Hills Harley-Davidson
Rapid City, South Dakota
NORTHEAST REGION
Rommel
Harley-Davidson Annapolis
Annapolis, Maryland
Harley-Davidson of Frederick
Frederick, Maryland
Monadnock Harley-Davidson
Swanzey, New Hampshire
Atlantic County
Harley-Davidson
Galloway, New Jersey
Liberty Harley-Davidson
Rahway, New Jersey
Barb’s Harley-Davidson
W. Collingswood Heights, New Jersey
Miracle Mile
Harley-Davidson
Great Neck, New York
Valley Forge
Harley-Davidson
Norristown, Pennsylvania
Gatto Harley-Davidson
Tarentum, Pennsylvania
Steel City Harley-Davidson
Washington, Pennsylvania
Horsepower Harley-Davidson
Williamsport, Pennsylvania
Triple S Harley-Davidson
Morgantown, West Virginia
SOUTH PLAINS REGION
Mobile Bay Harley-Davidson
Mobile, Alabama
Mile High Harley-Davidson
Aurora, Colorado
High Country
Harley-Davidson
Frederick, Colorado
Cajun Harley-Davidson
Scott, Louisiana
Kents Harley-Davidson Sales
Abilene, Texas
Cowboy Harley-Davidson
of Beaumont
Beaumont, Texas
Dallas Harley-Davidson
Garland, Texas
Gruene Harley-Davidson
New Braunfels, Texas
Legacy Harley-Davidson
Odessa, Texas
Paris Harley-Davidson
Paris, Texas
Harley-Davidson
of the Woodlands
The Woodlands, Texas
Harley-Davidson of Waco
Waco, Texas
SOUTHEAST REGION
Fort Myers Harley-Davidson
Fort Myers, Florida
Harley-Davidson of Lakeland
Lakeland, Florida
Peterson’s
Harley-Davidson South
Miami, Florida
Harley-Davidson of Pensacola
Pensacola, Florida
Treasure Coast Harley-Davidson
of Stuart
Stuart, Florida
All American Harley-Davidson
Hughesville, Maryland
Harley-Davidson of Charlotte
Matthews, North Carolina
Harley-Haven
Irmo, South Carolina
Myrtle Beach
Harley-Davidson
Myrtle Beach, South Carolina
Patriot Harley-Davidson
Fairfax, Virginia
Bayside Harley-Davidson
Portsmouth, Virginia
Southside Harley-Davidson
Virginia Beach, Virginia
Hampton Roads Harley-Davidson
Yorktown, Virginia
WEST REGION
Chester’s Harley-Davidson
Mesa, Arizona
Buddy Stubbs Arizona
Harley-Davidson
Phoenix, Arizona
Harley-Davidson of Fresno
Fresno, California
Harley-Davidson of Glendale
Glendale, California
Orange County Harley-Davidson
Irvine, California
Simi Valley Harley-Davidson
Moorpark, California
San Diego
Harley-Davidson Company
San Diego, California
Biggs Harley-Davidson
San Marcos, California
Iron Steed Harley-Davidson
Vacaville, California
Victor Valley Harley-Davidson
Victorville, California
McGuire Harley-Davidson
Walnut Creek, California
Henderson Harley-Davidson
Henderson, Nevada
Paradise Harley-Davidson
Tigard, Oregon
Sound Harley-Davidson
Marysville, Washington
LONGEVITY RECIPIENTS FOR 2012
50 YEAR
Adamec Harley-Davidson
of Orange Park
Orange Park, Florida
Hall’s Harley-Davidson
Springfield, Illinois
Kersting’s Harley-Davidson
Winamac, Indiana
City Cycle Sales Harley-Davidson
Junction City, Kansas
Harley-Davidson Sales & Service
Napoleon, Ohio
Harv’s Harley-Davidson
Macedon, New York
25 YEAR
Heritage Harley-Davidson
Lisle, Illinois
Harley-Davidson of Baltimore
Baltimore, Maryland
Harley-Davidson of Washington, DC
Fort Washington, Maryland
Harley-Davidson of Jackson
Jackson, Mississippi
Frontier Harley-Davidson
Lincoln, Nebraska
Barb’s Harley-Davidson
W. Collingswood Heights, New Jersey
C & A Harley-Davidson
Plain City, Ohio
Mid-Ohio Harley-Davidson
Springfield, Ohio
DuBois Harley-Davidson
DuBois, Pennsylvania
East Coast Harley-Davidson
Dumfries, Virginia
For more information visit www.Dealernews.com/readerservice
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ADVANSTAR_PDF/X-1a
5
Q U E S T I O N S — A R L E N E B AT T I S H I L L
T
hree years ago, Arlene Battishill and Desiree Estrada started GoGo Gear, a company that specializes in chic
riding gear for men and women. In late March the partners were thrown into a shark tank — a television
version of one, anyway. The duo appeared on ABC’s reality television show “Shark Tank,” where inventors
and entrepreneurs vie to win the financial backing of the Sharks, a panel of high-profile business investors
like billionaire Mark Cuban, real estate professional Barbara Corcoran, and FUBU founder Daymond John. For the full
story, visit www.dealernews.com/Battishill.
DEALERNEWS: What made you
apply for “Shark Tank”?
ARLENE BATTISHILL: One of the
reasons we wanted to go on Shark
Tank is because 6 million people
were going to see our product.
We’re going to get
significant penetration with that type of
exposure. A friend of
ours emailed us and
said she had seen an
advertisement that
they were having auditions for the show.
That was probably in
June of last year.
“Our website
traffic is up
1,000 percent
from before the
show aired.”
— Arlene Battishill
8
DEALERNEWS.COM
It seemed pretty brutal, what with Mark
Cuban calling you
both “cockroaches”
and all. Was the
entire process pretty
difficult?
AB: I think both
Desiree and I said,
“Whoa.” We didn’t have a real reaction, though, because we knew he
was being overdramatic in that moment. We knew this was television,
and that the pitching experience was
going to be exaggerated. [Cuban]
also called us stupid and said that we
didn’t know how to run a business,
but you didn’t see that on TV.
There were some other things
said to us during the taping that
were designed to get reactions out
of us — some of which caused one
of the producers to run up to us after
the taping and say, “We are NOT
going to air that!”
This is reality TV, and we knew
that going in. The sharks always have
to win, even if you get a deal. They
are the stars, the entrepreneurs are
the “props.”
They asked about our profit margins, they asked us about patents,
every last thing about our business,
and we had answers to all of it that
M AY 2 0 1 2
they had no problem with, but you
didn’t see any of that on television,
either.
Another thing that you didn’t see
was Robert [Herjavec] wanted to try
on a jacket. He is a motorcycle rider.
He said, “I’ve been in a motorcycle accident before, and you’re
telling me this is a motorcycle jacket
and everything you’re describing is
inside this jacket?” And I said “Yes,
let me show you.” I brought over
a ladies’ jacket in a size 4, and I’m
starting to explain to him what’s in
it, and the next thing you know, he’s
trying it on.
So some of the good stuff that
would have been great for our product never saw the light of day.
It’s interesting to have a completely different experience in a taping from what you saw on television
— where they make you look like a
total airhead. The sharks were making it seem like we had just pissed
away $400,000.
But in reality, we spent $150,000
manufacturing product, we spent
$150,000 in sales and marketing,
$15,000 in intellectual property,
$25,000 for product development
and overseas travel, and $60,000 for
two years’ worth of business operations like phone/fax lines, cellphones,
merchant account fees, etc. They
made it sound like we didn’t know
how to manage our business or manage our money.
You were able to broker a deal with
Daymond John. Can you tell us
more about that?
AB: The only thing I can say is that
we are finalizing the details.
We went into the show knowing that we had to impress him. He
was the fashion guy, and he rides a
motorcycle. We knew right away we
had to get him, and we knew he was
going to understand out product
from day one. Afterward, we sent
him all of our financials, our business
plan, strategies, and we all started
working on what would be the best
strategy and how Daymond can help
us with that.
What’s happened now that your
segment has aired?
AB: We had actually been working
with [Daymond] since last August,
when we taped. And within two
weeks of the taping, he called us. He
is amazing, he brings so much to the
table. This is a guy whose clothing
business has generated $6 billion.
What we’re doing right now is not so
much the deal we’ve done with him,
[but] what the best strategy is for our
business.
Our go-forward plan is to see
what we’ve got, and we’re going to
go from there. We’ve been in a holding pattern for a number of months
now. We didn’t want to make any
major business decisions because we
didn’t know what was going to happen once our episode aired.
Right after the show aired, did you
and GoGo Gear get immediate
attention?
AB: We have been contacted by
other prospective investors — a very
big distributor of helmets in Spain
who is introducing an electric scooter
to the U.S. market and has distribution all over Europe. And there’s
a continuous flow of emails from
legitimate people, and it’s only been
72 hours since the show aired! We’ve
gotten a continuous flow of emails
from people about distributing the
product, too.
And we’ve definitely had sales —
absolutely. Our website traffic is up
1,000 percent from before the show
aired. We’ve even been contacted by
a couple of television producers asking if we were interested in having
a reality TV show developed around
Desiree and I! I think I’ve had my fill
of reality TV for a while, but it sure is
flattering.
HIRE A TRUE PROFESSIONAL
}
Focused
{Responsive
}
On-Time
About
{Cares
Customers
}
Strong Performer
{Team Player
}
Skilled
Hire a motorcycle technician with hands-on experience and the right business skills.
If you want a true professional motorcycle technician, look to MMI.
Every MMI graduate receives industry-aligned training that includes business and customer
service skills. They’re qualified, dependable and ready to learn the way you do business.
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For more information about our graduation rates, the median debt of students who completed the program,
and other important information, please visit our website at www.uti.edu/disclosure.
For more information visit www.Dealernews.com/readerservice
FROM

THE EDITOR
Dennis Johnson
Go... go... go!
ROAD, TRACK OR TRAIL, motorcycle riding
is all movement. Whether it’s crosstown,
cross-country or cross-continent, two wheels
are locomotion.
I know that four wheels will get you there
too, but for me, motorcycles come with
a built-in need to go, go, go. Leave a car
parked and it just sits there. A motorcycle
not in motion just falls over, save for the
kickstand.
There’s something about packing up a
bike with what you need for the night or
the week that seems to fit the very purpose
of the machine. Get on and go. It seems
that nowhere is this more relevant than the
touring segment. This month we highlight
the booming adventure side of that market
— the growing segment of motorcycles and
aftermarket products that’s all but swallowed up what’s historically been known as
dual-sport.
It’s been too long since I’ve been on a
true adventure ride. In fact it was back in
2009 that I did three days in the Colorado
Rockies aboard a KLR650 with the FirstGear crew and a bunch of Tucker Rocky
reps. We were testing out what at the time
was the new TPG line of gear. (It worked,
thank goodness.) Whether through divine
planning or happenstance of the weather,
the Great Rocky Mountains’ microclimate
threw at us everything from sleet to sun as
we crisscrossed the Continental Divide. In
fact, former FirstGear guru Mark Kincart —
currently Klim’s gear guy — marks the ride
as one of his better industry jaunts. Mine,
too. Check out the whole story here www.
dealernews.com/TPG.
But that seems like a world away from
where we are today, with the ADV market
awash in new units from just about every
OEM, and the aftermarket producing the
kind of PG&A that would appeal to the
rider who pictures himself astride his GS on
a barren desert bluff — or commuting into
the office among the gridlock. Apparel, luggage, accessories — all of it is function-first
for riders who really ride.
In talking with aftermarket players such
as Twisted Throttle and Touratech USA, we
learned that the rise of the ADV segment
has directly fueled business growth, and
there’s no reason dealers shouldn’t jump
into this growing trend to both service their
For more information visit www.Dealernews.com/readerservice
10
DEALERNEWS.COM
M AY 2 0 1 2
customers and help bump the bottom line.
The proof is in the numbers — the MIC’s
2011 Retail Sales Report shows that dualsport bikes saw a 14.2 percent climb last
year — that this is a segment worth paying
attention to.
Elsewhere in this issue you’ll see a report
from senior editor Arlo Redwine on how
the year’s early thaw has jumpstarted spring
sales and whether this is an indicator of
good things to come. It’s still too early to
know if this means additional sales and a
rise in consumer confidence, or just early
sales. Surely the mild winter put a crimp on
snowmobile sales, but some dealers were
able to capitalize on the warmer-than-usual
weather by increasing motorcycle sales. In
fact, Bob Weaver says that two-wheeled
sales for his Top 100 dealership near Buffalo, N.Y., jumped threefold in February
compared to 2011.
Tim Sherman, owner of Signature HarleyDavidson, a Top 100 dealer in northwest
Ohio, says he’s seeing a overall difference
in the attitudes of his customers; something
he noticed last fall for the first time in three
years. He even reverted to summer hours a
month earlier than normal because people
are actually spending money.
Good news for now, whatever the cause.
We also report on the next chapter of
Motus Motorcycles, which includes talking
to a handful of its authorized dealers and
why they think a $30,000-plus, hand-built,
American-made sport-touring motorcycle
has a chance in this market. Each one we
talked to says they’ve had strong consumer
interest in the bikes, with many saying
they’ll have no problem selling them to
customers interested in niche products.
I see all of these pieces as parts of a bigger picture, and that is that the health of the
U.S. powersports market looks pretty good
from where I’m sitting. And I’m not prone
to optimism. We’re not in great shape, but
we’re a far cry better than we were three or
so years ago.
So let’s keep on keeping on.
Dennis Johnson
Editor in Chief
[email protected]
S H O P TA L K
What you’re
saying…
’Hangtag’ class action suit gets
new trial in California
“MEDRAZO CLAIMED that the salesman did
not disclose $2,284 in dealer charges that
would be added to the $8,700 price of the
motorcycle until he produced the sales contract.” The customer had the option to say
“no” — she chose to buy after the fees were
disclosed, probably so she could be the hero
for her boyfriend and play the role. Appears
to me they had a bad break-up and she is
trying to weasel out of the contract. Another
reason to not facilitate “straw purchases.”
Next thing you know, the courts will make
dealers disclose the cost of their products,
too. Ridiculous!
— Cycle Lend, Kemp, Texas
ALL THAT HAD to happen was that the
customer needed to take the initiative to say
no and question anything about the purchase
she didn’t like or understand before she
signed the document and took possesion.
I quess it is just expecting too much for a
person to be accountable...
— Scooterbob, Crystal Lake, Ill.
MY SHOP IS VERY close to North Hollywood Honda, and we buy parts there all
the time. They are good folks, and I don’t
think they were trying to scam anyone.
Very sad.
— NoHo Mike, North Hollywood, Calif.
So Cal couple takes motorcycle
service on the road
WE’VE BEEN DOING this since 2007 but for
the offroad market. It has been a struggle as
many of the larger distributors refuse to sell
to you unless you have an actual brick-andmortar store. My business started in a small
trailer and has grown to a 24-ft vending
trailer. It’s a shame that the distributors hold
on to the old business models.
— CrazyTed’s Racing, Virginia Beach, Va.
Visit us online at: dealernews.com
Join the dealer community at:
dealernews.com/shoptalk
Become a Facebook fan:
facebook.com/dealernewsfan
Follow us on Twitter: twitter.com/dealernews
Send us an e-mail: [email protected]
For more information visit www.Dealernews.com/readerservice
M AY 2 0 1 2 D E A L E R N E W S . C O M
11
February net income triples
from one year ago
USED INVENTORY STILL NOT BEING REPLACED FAST ENOUGH, OWNER SAYS
BY JOE DELMONT
EDITOR’S NOTE: The Dealer Lab project is a joint effort between Dealernews and PowerHouse Dealer Services, a consulting firm run by dealer Bill Shenk,
detailing his efforts to return a dealership, Florida Motorsports in Punta Gorda, to profitability after purchasing it two years ago. The dealership has been
renamed Destination Powersports.
Financial information in this report is taken from the dealership’s Composite Report supplied by Shenk and is prepared as part of the dealership’s
participation in the PowerHouse Dealer 20-Group. The Composite Report is produced from the store’s monthly financial report. In preparing these Dealer
Lab reports, Dealernews reviews the dealership’s unaudited P&L statement, balance sheet and Composite Report.
AFTER A SLOW START in January, things
picked up in February at Destination Powersports in Punta Gorda, Fla. Net income nearly
tripled year-over-year, climbing from $6,898
in February 2011 to $18,129 in February
2012, an increase of 163 percent.
Net income for the year increased 33.4
percent over 2011, jumping to $37,237.
Total revenues were also up slightly, moving from $344,159 to $390,876 this February,
for a 13.6 percent YoY gain.
At the same time, the cost of goods sold
(COS) increased $37,057, or 15 percent, during the same period.
Gross profit climbed more than $10,000,
increasing from $97,527, to $107,187, while
expenses climbed about $2,300, moving
from $87,531 to $89,815. However, GP
dropped slightly — 27.4 percent vs. 28.3
percent, as a percent of sales.
Unit sales continued strong, with 44 units
sold in February, including 14 used motorcycles. In February 2011, Destination Power-
sports sold only 32 units, including 15 used
motorcycles. This year marked an improvement in the sales of new units: 14 compared
to eight last February.
Sales of motorcycles continued strong in
2012, with new-unit sales running ahead of
last year, 26 to 15, and used units outpacing
last year 29 to 21. Total unit sales are ahead
of last year 87 to 66.
GROWTH FACTORS
There were several reasons for the strong improved performance this February, compared
to February 2012, including the month’s
rider-friendly weather — which had a similar
impact on dealerships across the country.
Other factors included:
Improved website. The dealer site is
becoming more established and the dealership is spending less on getting good search
position.
More inventory. This provides increased
opportunities for unit sales, as well as other
CONTRIBUTION TO FEBRUARY PROFIT
USED INVENTORY
Meanwhile, Bill Shenk says there are still
plenty of opportunities for growth in revenue
and profit. “Our used inventory is not being
ROLLING EARNINGS
$10,000
$250,000
$8,000
$200,000
$6,000
sales across the dealership. (Read more about
this below.)
More brands. The addition of Polaris and
Victory brands to the dealership provided
more unit sales opportunities compared to
last year.
Stronger P&A. The dealership did a
better job of selling P&A this year. Just one
example: The average lines per invoice sold
to floor customers was up from 1.89 to 2.04,
which increased the average invoice from
$54.80 to $61.76. This created $4,300 more
gross profit on only eight more transactions,
550 last year vs. 558 this year.
Better ratios. A stronger parts-to-service
ratio reflected the better salesmanship, going
from 97 percent of labor to 116 percent of
labor sold.
Month
12 Months
$150,000
$8,691
$9,276
$4,000
$2,000
$100,000
$50,000
$1,440
0
0
–$1,278
–$50,000
–$2,000
Sales
F&I
PG&A
SVC
The Dealer Lab is a real-world service from
12
DEALERNEWS.COM
M AY 2 0 1 2
Mar Apr May Jun
July Aug Sept Oct
Nov Dec
Jan
Feb
Month-Over-Month Comparisons and YTD Totals: February 2012
SALES
Units Sold (New & Used)
Sales
F&I (net)
Parts
Accessories
Service
Total Sales
Total Cost of Sales
Gross Profit
% of Total
Dollars
% of Total Dollars
Feb-12
44
286,805
11,784
24,244
37,761
30,282
390,876
283,689
107,187
EXPENSES
Dealer
Top Gun
73.4
3
6.2
9.7
7.7
100*
72.6
27.4
72
4
8
9
7
100*
72.0
28.0
Feb-11
32
243,728
12,323
24,173
31,899
32,036
344,159
246,632
97,527
Payroll
Total Sales (5.25/4.0 Empl) 17,887
Total P&A (2.20/2.5 Empl)
8,452
Total Service (4.50/5.00 Empl)17,468
Flooring
6,440
6,631
4,190
13,794
13,108
1,845
89,815
0
757
19,129
19,129
YTD 2012
87
584,980
25,838
46,693
71,092
61,599
790,202
580,074
210,128
PVS
DLR
6,724
297
537
817
708
9,083
6,668
2,415
74.0
3.3
5.9
9
7.8
100*
73.4
26.6
% of Dept Gross Profit
Top Gun
Feb-11
Dealer
Jan-12
YTD 2011
YTD 2012
PVS
DLR
32.3
37.9
57.7
11.6
28
42
54
11
16,182
6,472
17,907
2,840
34.0
36.7
56
6
16,917
7,934
16,435
5,065
39,340
14,202
32,792
5,194
34,804
16,386
33,903
11,505
400
188
390
132
32.5
38.2
55
10.8
6,973
3,843
12,667
12,167
1,814
83,815
0
12,761
10,223
37,386
25,365
3,015
180,278
13,604
8,033
26,461
25,275
3,659
173,630
0
–18
19,108
19,108
–997
27,916
27,916
739
37,237
37,237
% of Dept
Gross Profit
6.2
3.9
12.9
12.2
1.7
83.8
0
7
1
14
10
3
79
5
6,380
5,029
18,832
12,360
1,529
87,531
0
4.6
4.6
6.5
5.2
19.3
12.7
1.6
89.8
% of Dept Gross Profit
% of Total
Dollars
% of Total Dollars
Additional Income
Net Profit
Net Profit + Misc Exp
YTD 2011
66
602,594
24,819
45,207
67,328
59,941
799,889
590,698
209,191
Dealer
% of Dept. Gross Profit
Admin Payroll
Advertising
Administration
Rent
Co. insurance
Total Expense
Misc. Expense
70.8
3.6
7
9.3
9.3
100*
71.7
28.3
% of Total Dollars
Jan-12
43
298,175
14,054
22,449
33,331
31,317
399,326
296,385
102,941
% of Dept
Gross Profit
% of Dept. Gross Profit
Feb-12
Dealer
0
5
6
–3,098
6,898
6,898
–1
2
2
156
92
304
291
42
1,996
0
6.5
3.8
12.6
12
1.7
82.6
0
% of Total Dollars
8
428
428
0.1
4.7
4.7
Notes: Top Gun = The top performing dealerships in the PowerHouse training group. PVS = Per Vehicle Sold. We now include YTD comparisons for 2010 and 2011. Shenk began operating
Punta Gorda dealership on March 1, 2009. * Totals equal 100 because of rounding ** Name was changed during February 2010 ownership change and corporate reorganization.
replaced or grown fast enough to keep up
with our growth opportunity, and this will
cause us to miss sales opportunities if we
can’t fix it soon,” he says.
At the same time, the dealership is understaffed in its sales department, a situation that
prevents the dealership from prospecting its
of Manheim Specialty Auctions in Daytona,
Fla.
“We sold and bought at the auction in
March,” Shenk says, “and we made money
both ways there.” (Look for more about
Shenk’s auction activities with Manheim in
upcoming issues of Dealernews.)
As mentioned earlier, unit inventory increased this February.
This increased product
availability is reflected
— Bill Shenk
in the store’s inventory
numbers as well as its unit sales revenues and
its flooring costs.
In February, the dealership had 263 new
and used units in inventory, worth $2.1 million. Last year, in February, there were 176
units in inventory with a value of $1.4 million.
This increased inventory led to a tripling of
flooring costs over February 2011; flooring
jumped from $2,840 last year to $6,631 this
year. YoY, flooring more than doubled, climb-
“Increased inventory has provided
more opportunities for unit sales, as well
as other sales across the dealership.”
customer database and working with its parts
and service customers, two solid sources for
acquiring more used product to put on the
showroom floor. Shenk would also like to beef
up the staffing in P&A.
Finally, Shenk says that the store isn’t being
as proactive in any department as it should
be. “This situation is stunting our growth opportunities,” he adds.
Recently, Shenk has been making more use
ing from $5,194, last year to $11,505 this year.
“Powersports is a customer-experiencedriven business,” says Shenk. “You can
maintain [your numbers] for a short period of
time without giving customers that little bit
of extra care that’s so important, but I believe
it will catch up with you in time. Whenever
one improves, there tends to be a period of
relaxation that slows down the journey from
good to great. Right now, we are fighting that
tendency.”
Bill Shenk is owner and 20 Group moderator of
PowerHouse Dealer services, a dealership 20
Group provider and consulting/training company. He has worked full time in the powersports
industry since 1976. Shenk purchased his first
dealership in 1987 and started PowerHouse in
2000. He purchased the Dealer Lab dealership
to show the industry that even in these extreme
times you can turn around a failing dealership by
using the proper best practices.
Anyone interested in joining a PHD 20 Group
should contact Shenk at 877-PHD-0911 or Bill@
phdservices.com.
Read past reports and post comments at:
www.dealernews.com/dealerlab
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MANAGEMENT
“It’s a great place to
ride to. We’re half a
mile from the ocean
on the main artery
into Newport Beach,
so we get about
100,000 cars a day
that drive by the
dealership.”
— Michael Guerin
14
DEALERNEWS.COM
M AY 2 0 1 2
LOCATION,
LOCATION,
LOCATION
DUCATI/TRIUMPH NEWPORT BEACH IS A PERFECT MIX OF SITE, BRAND AND SERVICE
by Bruce Steever • photography by Joe Bonnello
IT WAS A PLAN THAT COULD NEVER WORK: Start with an expensive location
that had seen previous dealerships collapse, combine that with a terrible economic climate,
and then mix in a low-volume brand. But like a certain fictional team leader, Ducati/
Triumph Newport Beach president Michael Guerin loves it when a plan comes together.
Guerin knew exactly what it would take to make his plan successful.
He needed a strong brand, the right location and a strong staff that
knew how to provide a truly premium customer experience. “It was all
planned that way,” Guerin says. “When we opened this store in May
2009, we were in the heat of the recession. But if we could get the
pieces to work, we were going to do it. Getting a Ducati franchise in
here was key, as I really felt it was the brand to have in this market. It
was the culmination of what we called the perfect storm: perfect location, great product, and obviously the best employees.”
While it might be easy to look to Ducati/Triumph Newport Beach’s
location as the source of Guerin’s success, he asserts that there is
more to a great store than a great location. Of course, he is quick to
point out that it doesn’t hurt. The dealership sits directly on Newport
Boulevard, an arterial surface street that essentially connects affluent
Newport Beach with the rest of central Orange County, Calif. It is close
to the beach, close to major freeways, and sees plenty of passing traffic each day.
“It’s a combination of things that makes it a good destination dealership,” Guerin says. “It’s a great place to ride to. We’re half a mile
from the ocean on the main artery into Newport Beach, so we get
about 100,000 cars a day that drive by the dealership.
“When you have a location like this, you can spend a lot less on
marketing. You may pay more in rent, but that is your marketing
expense. It’s the right area, there’s no doubt,” he says.
There’s also something to be said for having the right brand for
your market. Newport Beach boasts some of the highest property
values in the country, and many areas around Orange County aren’t
far off. Ducati’s premium market position doesn’t deter many buyers in
these areas, and Ducati has been on a tear over the last few years.
Guerin wanted Ducati from the start, as he was both a fan of the
brand and confident in its potential. “Ducati has been in my heart as
a customer,” Guerin says. “But I also enjoy working with the manufacturer. Being a dealer right now is great. You don’t have aged inventory.
Ducati gets the accessories right, they have the brand experience,
Ducati is really on top of it. As a dealer you have to be on top of it as
well; you’ve got to play your part and support the brand.”
A more recent addition to the store was adding Triumph. Creating
a mirror business name under the same roof, Triumph Newport Beach
helped bring the dealership quick growth in the few short years since
it’s opened its doors. The store maintains separate websites for each
brand.
“The Triumph franchise became available and I felt that if we were
going to put another brand in here, it would be a good fit,” Guerin
says. “I felt that Triumph was different enough that it wouldn’t compete with Ducati. It’s a complementary brand.”
The results of both brands under the same roof has been surprising,
even to Guerin himself. “Triumph’s drawn a lot more traffic into the
store. At the end of the day, this might have benefitted Ducati in the
sense that this floor traffic might not always buy a Triumph. In 2009, it
was challenging, no doubt about it, but it came around quickly. [The
year] 2010 was great, 2011 was fantastic and the growth has been
fantastic. It’s been a total ‘pinch me’ how it’s all worked out.”
According to Guerin, a huge part of the success of Ducati Newport
Beach has been the focus on creating a premium customer experience, along with building a staff that can consistently provide it.
The first thing you notice when you walk into the dealership is that
it doesn’t look like other powersports retailers. It’s a cross between
a contemporary museum and a race paddock. The motorcycles
M AY 2 0 1 2 D E A L E R N E W S . C O M
15
MANAGEMENT
are placed in the showroom as art; people can walk around them
and enjoy them. First-time customers are often a bit taken aback.
“Sometimes it’s a bit overwhelming,” Guerin says. “Many customers have never seen so much European product in one location. It’s
fun to watch people’s faces as they walk in the door. But that’s what
we want — it’s for the people that want to come in and experience
these products, and touch and feel them.”
From that first glimpse, Guerin’s staff strives to escort the customer through every aspect of their visit to the store. “I’m here every
day as an owner, and I know what I expect as a consumer,” he says.
“Customers want, from the moment they walk in the door, the whole
experience. Everything in this store is based on the in-store experience. People need to be greeted immediately, and they need to be
taken care of the entire time they are here in the store. That’s really
the key to it — to engage the customer from the moment they walk
in the door.”
The sales process at Ducati Newport is built around the same
focus one learns in journalism: show, don’t tell. The key is finding out
what customers want rather than simply telling them what they need.
Sales techniques are still there, but the pressure of the hard sell is
eliminated. With the open-floor layout, the lack of pressure, and
a sales staff specializing in European machinery, the overall atmosphere is more akin to an Apple store than a motorcycle shop.
“We’re going to make it a pleasurable experience, whether it’s
buying a bike, buying a jacket, buying an accessory or getting
service. It’s having the right people. Everyone we have has the right
Ducati/Triumph Newport Beach’s design layout gives each brand its own identity in a space that’s been described as a cross between a contemporary art
museum and a race paddock. The open floorplan gives a feeling of being immersed in the two European marques.
16
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M AY 2 0 1 2
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MANAGEMENT
The store’s PG&A areas are integrated with the vehicle sales floor so, “customers don’t feel abandoned
once they return after their bike purchase, bringing the sales experience …full circle.”
attitude, the premium-experience attitude,” Guerin says. “It means
they take the time; that you’re not a number. They develop relationships. The people that buy motorcycles here and get service done
here become part of the family. We try to get to know who they are,
and let them know who we are.”
The technical service side of Ducati Newport is just as important to
the health of the dealership. Guerin’s background includes 35 years in
the auto industry with a focus on service. Building an industry-leading
service department was always part of the plan.
“It’s the convenience, level of training of technicians and followup,” Guerin says. “Pick-up and delivery has made a big difference. We
have two master-certified Desmo techs for Ducati, and we do inspections on every bike. We try to exceed the expectations of what people
with the product have been used to in the past, including myself. I was
a Ducati consumer, so when we built this store, we based it upon our
experiences elsewhere.” (Product was good, he says, but the service
was lacking.)
The parts department also is expected to deliver a premium experience. Stocking levels are aggressively monitored and maintained,
especially with OEM accessories, a strong point for both brands. Accessories decorate every single demo bike in the fleet, giving customers the chance to touch and use the parts in action. Dedicated apparel
specialists are on hand.
The end result of this extreme focus on creating that elusive
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DEALERNEWS.COM
M AY 2 0 1 2
premium experience is an audience that returns positive results.
Ducati Newport’s online reviews and reputation are nearly all five-star,
community events see great attendance, and the store’s branding
continues to grow. Most of the attention comes from word of mouth
compared to more digital channels.
“People become a part of the family here,” Guerin says. “Even if
they didn’t buy their first bike here, after experiencing our service,
they’re going to buy their next bike here. Give them the right experience once they’re in the shop, and they’re going to be a multiple bike
purchaser. Customers have had the opportunity to watch us grow, and
I think they really appreciated that, it made them feel like they were a
part of it. We have a really strong customer base that has watched this
place develop, and they’ve liked what they’ve seen. I think that’s part
of our success. We’ve invited people to be a part of it.”
Having been in business only three years, Ducati Newport has
already earned its place as the No. 1 Ducati dealer in the U.S. Of
course, like any good leader, Guerin doesn’t plan on resting on his
laurels. “Nobody’s really content with where we are,” Guerin says.
“We are always trying to make it better. Everyone else was retracting,
and we kept pushing forward. I’d love to tell you I knew what the hell
I was doing, that it all went perfectly according to plan, but some of
this, you’re going by the seat of your pants as best you can, according to the vision you though it would be. This was the right time, and
we’ve never looked back.”
For more information visit www.Dealernews.com/readerservice
MANAGEMENT
2012 DEALER OF THE YEAR
DUCATI / TRIUMPH NEWPORT BEACH
1601 Newport Blvd., Costa Mesa, CA 92627
Phone: 949-706-1616 • E-mail: mike@ducatinewportbeach
Website: www.ducatinewportbeach.com and www.triumphnewportbeach.com
Owners: Michael and Judy Guerin
General Manager: Mark McKinsey
Number of Employees: 14
Years in Business: 3
Years at Location: 3
Store Size (sq. ft.): 8,400 of
building, 20,000 of parking
Annual Revenues: $7.6 million
Total number of new units sold: 305
Total number of used units sold: 93
DMS: Lightspeed NXT
Hours of Operation:
Tuesday – Saturday: 9 a.m. to 6 p.m.
Sunday: 11 a.m. to 4 p.m.
2011 Income by Department
SALES DEPARTMENT
Managers: Aaron Klink
F&I manager: Chris Bryant
Employees: 4
Showroom Size (sq. ft.): 5,900
OTHER
Distributors Used: Parts Unlimited, Helmet House, REV’IT!,
Sammy Tanner Dist., Motonation
and Pitbull
PARTS DEPARTMENT
Manager: Heather Klink
Employees: 3
Size (sq. ft.): 500
Club Sponsorship:
Orange County Ducati Club
Customer Demographics
SERVICE DEPARTMENT
Manager: 1
Technicians: 5
Lifts: 8
Size: (sq. ft.): 2,000
Shop Rate: $114 per hour
Women: 10%
Men: 90%
Over 40: 55%
18-39: 45%
Average age: 42
2010-11 Advertising Budget
11% Used Units
2011 Income by Brand
70% Internet
13% Service
19% Parts &
Accessories
5% F&I
52% New Units
20
DEALERNEWS.COM
M AY 2 0 1 2
10% Social Media
34% Triumph
15% Outside Events
5% Print
66% Ducati
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MANAGEMENT
How to get out of
your own way
INDY’S KEYNOTE SPEAKER ON THE INCESTUOUS NATURE OF THE INDUSTRY, AND WHAT DEALERS CAN
DO TO STOP FEELING LIKE ECONOMIC VICTIMS
by Holly Wagner
EVER SAT IN AN Apple retail store for a couple of hours to watch the
customers? How about the Macy’s cosmetics department to find out
how women react in a retail setting?
These aren’t the first ideas that spring to most dealers’ minds
when they think about how to increase sales. Yet Kevin Freiberg, who
exhorted dealers to “Innovate or Perish” in his Feb. 17 keynote address
at the 2012 Dealer Expo and American V-Twin Dealer Show, wants even
the most successful dealers to think outside the box, and look at other
retail markets for unconventional cues to improve service and sales.
A month after the show, we contacted Freiberg, a mainstream business motivation speaker who has led presentations in front of everyone
from Fortune 100 conglomerates to, for the first time, an assembled
community of powersports dealers this past February. We were
curious to understand his impressions of the industry, and what he
would advise dealers now that he’s more acquainted with the market.
It seems he believes powersports is a little too self-contained — and
that’s a trait that might scare away more new customers than it attracts.
“Sometimes an industry can be incestuous. ‘If it is not invented here,
if it did not come out of our industry, it ain’t s**t,’” he says.
Powersports “is an incredible industry, with huge potential, that has
a ways to go in living up to that potential,” he says. “You’ve got to get
smarter, get better, get faster, and be more willing to get out of the
traditional comfort zones.”
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DEALERNEWS.COM
M AY 2 0 1 2
It sounds obvious to tell dealers that they need to focus on what they
can offer customers to keep them coming back. But what Freiberg is
talking about is adopting new approaches that will keep existing clients
happy, while turning casual visitors into long-term customers.
One of the best ways to generate fresh ideas is to get out of your
own store. “Where do new ideas about how to run your business or
deal with your suppliers come from? They don’t come from dealing
with the same people, looking at the same computer, day after day,”
he says.
So observe the businesses that are serving the customers you want
to have.
“Go study every retailer outside of your space that is hitting it out
of the park. You don’t think the Apple store has anything to teach you
about how to run your business? Go sit in the corner with your iPad, or
whatever you use, and watch,” Freiberg says. “If I were these dealers, I
would go to places enthusiasts hang out — outside the industry.”
SOCIAL MEDIA BUILDS RELATIONSHIPS
Many dealerships already build their businesses around community
— offering rides, bike nights and events that keep people tied to the
store. Now they must figure out how to build that community with
online tools (like social media) and keep it linked to the physical community that attends events.
“You don’t think the Apple store has anything to teach you about
how to run your business? Go sit in the corner with your iPad, or
whatever you use, and watch.”
“It’s getting out of the ‘either/or’
mentality,” Freiberg says. “[Dealers]
may say that technology or social
media is ‘not for me because I am not
selling online.’ Or maybe they are, but
the major play is still getting people in
the door.” Forsaking one for the other
leaves opportunities for competitors,
including e-tailers, to move in.
Another piece of advice is to stop
acting like a victim. “You are a victim
of price competition, but you get to
choose whether you are going to be
victimized,” he says. “Why not use that social media to reach me? It’s
not about a one-off helmet. It’s about building a relationship with me.
Compel me not to go to that online channel.”
Any business that builds its clientele around enthusiastic participants may have something to teach powersports dealers.
Freiberg uses himself as an example. A few years ago he learned
to ride a motorcycle. When he was ready to buy a bike, his wife
counseled him to rent for a while instead. After a year, he decided he wasn’t
comfortable riding with his wife or child
on the back, so he gave up motorcycling
in favor of activities he felt were more
family-friendly.
“If I’d have had somebody with sales
staff trained to say, ‘We just want to get
to know you. What brought you in, and
what did you want to accomplish?’ that
could have been a powerfully different
experience,” he says.
The overarching message is to constantly evolve, try new things and take chances. Be willing to look
critically at your own business.
“In life and certainly in business, the really successful are the
people who are willing to face the brutal facts of reality,” Freiberg
says. “The dealers that are going to be around 10 years from now are
the ones who will say, ‘We really do a good job in these 20 areas, but
in these five, we suck.’”
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M AY 2 0 1 2 D E A L E R N E W S . C O M
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SALES
Dealers jumpstart the
2012 motorcycle season
WARMER-THAN-USUAL WEATHER HAS FOSTERED EARLIER-THAN-USUAL SALES. BUT WILL IT MATTER?
by Arlo Redwine
IT’S AN UNSEASONABLY WARM Saturday in mid-March. Scott
Poupard, owner of Monroe Motorsports in Monroe, Mich., is rarely
absent from his store, but today he’s attending his daughter’s dance
competition. March is a slow month, anyway.
Poupard’s cell phone rings. It’s an employee back at the store, which
is being overrun with customers.
“Are we having an open house that you didn’t tell us about?” the
tense employee asks. “There’s so much traffic in here — are we giving
something away for free?”
Nope. People are just ready to ride.
Indeed, dealers nationwide are reporting earlier-than-usual spikes in
sales and service due to warmer-than-usual weather. Industry statistics
support their claims. But are these sales additional, or just early? Does
the recovering economy have anything to do with it? And what about
dealers who sell snowmobiles? For them, the mild winter was at best a
double-edged sword.
26
DEALERNEWS.COM
M AY 2 0 1 2
Consider Bob Weaver Motorsports & Marine near Buffalo, N.Y., the
nation’s “snow capital.” Owner Bob Weaver says he has more leftover
snowmobiles than he’s had in 40 years because of light snowfall. But
February motorcycle sales were up threefold compared to last year.
“We brought out the bikes and the bike clothing a month to two
months early,” Weaver says. “We have been nonstop busy. I could hire
more salespeople, more parts people, more service people. I just can’t
find the help.”
Even Weaver’s sled sales were good until January, when people
began to realize the white stuff wasn’t coming. Snowmobile sales
nationwide through November were up year-over-year by about 25
percent, according to Minnesota-based research firm Power Products
Marketing. So even with the brown winter, final sales numbers will be
up slightly.
Weaver believes that strong pre-season sales were due to last
year’s heavy snowfall. Similarly, this season’s disappointment will
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SALES
Top 100 Dealers (pictured above from left): Big St. Charles Motorsports, Bud’s Harley-Davidson, Downtown Harley-Davidson; previous page, clockwise from top
left, Cruisin’ 66, Fun Bike Center, Adventure Harley-Davidson, Babbit’s, Cyclewise/Ducati Vermont organized ride, Bob Weaver Motorsports & Marine
make next year difficult. “Nobody’s going to buy early,” he predicts.
“They’re going to wait to see snow again.”
Lack of snow also hampered sled-related repair orders and PG&A
sales. Poupard says he has about $100,000 in leftover snow clothing.
He had doubled his order after running out of inventory last January.
Across the lake in Wisconsin, local media report that snowmobile registrations were down nearly 40 percent, mostly due to closed trails.
HARLEY ON FIRE
But back to the good news. Harley-Davidson dealers reported a 30
percent year-over-year increase in bike sales through mid-February in
a dealer survey conducted by the financial firm Baird and cited by the
Journal Sentinel. Warm weather contributed to a 46 percent surge in
Harley sales in the Midwest, the newspaper noted.
Tim Sherman, owner of Signature Harley-Davidson, a dealer in
northwest Ohio, believes the rebounding economy is a factor. “We
had a mild winter, but we started to notice the customers’ attitudes
toward spending really improving last fall for the first time in three
years,” he says. “And our holiday season followed right along.”
Signature returned to summer hours and seven-day weeks March
1, one month earlier than normal. “The guy who used to buy an extra
jacket even though he didn’t need it — he’s back,” Sherman claims.
“And people are replacing the bikes they had to sell when things got
dicey three years ago. We’re talking to customers who tell us that.”
This increase in demand comes following a few years of falling
OEM production numbers and a recent decline in repossessions. Because of this, used-motorcycle values increased roughly 4 percent in
February, says Black Book’s Ricky Beggs, adding that used-sled values
declined by about the same percentage. “There is usually an uptick
this time of the year, but it started a little earlier this year and slightly
stronger than the past couple of years,” he says.
Of course, the people who bought bikes in February and March
may be the same ones who would have bought in April. “Motorcycle
sales are up significantly for the timing, but I don’t know if they’ll
be significantly up for the whole season. It’s too early to tell,” warns
Johnna Diedrich, GM of Gieson Motorsports in Rock Falls, Ill.
But there’s also a major benefit simply to a spread-out motorcycle
season, argues Joe Boise, owner of Cyclewise and Ducati Vermont in
New Haven. “Sometimes in the spring we’re so backed up that you
can’t get to everybody in sales or service,” he says. “So the early start
will make it less demanding on the staff.”
Scott Poupard of Monroe Motorsports believes some of his winter
bike customers were would-be snowmobilers. “The bike traffic I think
is extra,” he says. “The same guys also ride ATVs; they also do snowmobiling. They want to spend their money on something.”
Joe Hengeveld, owner of Northland Motorsports in Flagstaff, Ariz.,
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DEALERNEWS.COM
M AY 2 0 1 2
points out that a mild winter in his area still means temperatures in
the 20s and 30s. So his store didn’t sell many streetbikes, but it did
enjoy unusual dirtbike sales through early March because of light
snow coverage.
The Motorcycle Industry Council predicts new-motorcycle sales will
decline modestly this year after flat sales last year.
Perhaps less contentious is the idea that the mild winter will lead to
more miles ridden. Several dealers report customers removing their
bikes from winter storage, or requesting spring prepping, four to six
weeks earlier than normal.
Both Parts Unlimited and Tucker Rocky say that motorcycle-related
sales exceeded their forecasts for January and February, with Tucker
specifying a double-digit increase compared to last year.
ADP Lightspeed’s ongoing “Same Store” survey of about 200 Harley-Davidson dealers and 1,000 metric dealers indicated that February
revenue from parts, service and sales combined was up by about 12
and 13 percent, respectively, compared to the same month last year.
WHAT ABOUT FOUR-WHEELERS?
The ADP Lightspeed statistics for metric dealers take into account all
vehicle types, so they likely would have been even better if ATVrelated sales had been removed from the mix.
Or maybe not. Sales of four-wheel-drive ATVs may have bottomed
out in November, according to Dave Crocker of Power Products
Marketing. “At least for three months, large-bore ATVs have bested
the prior-year months,” he says. “It will be interesting to see if that’s
an ongoing trend, or if it just falls back down again.”
Even overall ATV sales were up in December, Crocker adds, largely
because of the reintroduction of kids’ quads after the lifting of the
lead ban. He also predicts another strong year for side-by-sides,
though not as strong as last year when the industry benefited from a
parade of new models.
Many of Poupard’s winter ATV and UTV sales in Michigan are tied
to snow removal, so the mild weather hurt their numbers. “Right
now if I went to my parts department, they probably have four dozen
plows that are sitting there,” he says. His dealer friends relate similar
stories.
When sharing year-to-date trends, Tucker Rocky notes that sales
of ATV-related items are down slightly compared to last year —poor
snow plow sales offsetting the strong finish for ATV items at the end
of 2011.
Again, it’s the importance of timing. But as the motorcycle industry
enters its traditional sales season, dealers are hoping that the great
start of 2012 was about more than different timing — that a rebounding economy coupled with high gas prices (but not too high) will make
for a great middle and end of 2012, as well.
For more information visit www.Dealernews.com/readerservice
SALES — TOURING MARKET PRODUCT OVERVIEW
Over the river and through
the woods ... to the office?
A MULTITUDE OF NEW ADVENTURE BIKES SIGNALS A TREND AMONG THE OEMS,
BUT IT’S THE AFTERMARKET THAT GIVES THE FULL PICTURE
by Dennis Johnson
IT SEEMS AS IF the Honda TransAlp’s North American debut in the
1980s was a little premature. The Golden Age of dual-sport motorcycling is upon us, and it is called adventure touring.
If only Honda’s dualie had survived America’s fickle taste it could
have thrived to exist in a broad range of models that includes everything from Kawasaki’s diehard KLR650 and Yamaha’s freshly christened
Super Tenere to the grand-daddy of the segment, the BMW GS series.
It’s a range that includes multiple displacements and various levels of
tech, each suited to the particular wants of the rider.
As a testament to just how popular the segment has grown, just
about every OEM is producing a bike that fits in what is now called the
adventure touring market, and that segment is growing. In 2011, the
Motorcycle Industry Council’s Retail Sales Report shows that dual-sport
bikes were up 14.2 percent for the 12 reporting brands.
While numbers may paint a portion of the picture and an assortment of magazine reviews on ADV bikes (as goes the lingo) may point
to a trend, it’s really the aftermarket that reflects what’s happening on
the highways and byways and dirt roads of America. These are bikes
that people really ride, and they want stuff on them.
“The numbers are showing a huge surge in the growth of the
adventure-touring and sport-touring markets. Dealers are seeing this,
and now they’re actually seeing the OEMs addressing it by building more adventure bikes,” says Adam Redford, sales and marketing manager for Twisted Throttle, one of the bigger players in the
segment. “The manufacturers are paying attention, and the dealers
need to do the same.”
Rising gas prices. Changing consumer taste. More commuters riding motorcycles. Whatever the case, more people are opting for bikes
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DEALERNEWS.COM
M AY 2 0 1 2
that can (or at least look like they can) get them to work during the
week, hit some trails on the weekend or be loaded up for a long trip
into the outback. “The way we look at it is, any time you get on your
bike and go somewhere where you’ve never been or are exploring the
back-country, that’s adventure touring,” Redford says.
This is good news for Twisted Throttle, a manufacturer and distributor of parts and accessories that is celebrating its 10th anniversary by
moving into a new 27,000 sq. ft. facility on six acres. This is growth that
can be directly related to the rise of the adventure market, Redford
notes. The company started by providing accessories for Suzuki’s stalwart V-Strom and now makes or distributes several different brands.
The company’s goal is to be a one-stop shop for touring and/or
adventure touring enthusiasts by offering a broad range of aftermarket
products that gives dealers a good margin.
“If you’re looking to make a bike more practical to get out there, we
want to make sure you have what you need, whether it’s saddlebags,
a tank bag or a top case,” Redford says. “When it comes to custom
cruisers, every dealer in the world has something for those bikes. But,
right now, the dealers are not able to service their customers at the
adventure end of the market.”
RIDERS HAVE ALWAYS BEEN TRAVELING
While what is now called the adventure touring market might be
relatively new, dual-sport bikes like the KLR650 have been around for
years, as have the people who want to load them up and start blazing
trails. Take a look at ADVRider.com, an online forum with a dirt-centric
flavor — tales abound of transcontinental crossings and around-theworld trips.
SALES — TOURING MARKET PRODUCT OVERVIEW
Progressive Suspension’s David Zemla says that while the company
always has operated in that space — one of its best-selling monoshocks is for the KLR — recent growth has drawn the company deeper
into the market. But it’s not going full-throttle developing suspensions for the new breed of bikes; among its more recent products is
an adjustable monoshock for the BMW F800 GS — a bike growing in
popularity among ADV riders.
Zemla says the bikes in this market tend to get really loaded up,
which forces the machine to sit lower in the travel — the last configuration you want when you hit a bump while traveling a pass on the
Continental Divide. The company also get requests for lowering kits
for the bigger and taller motorcycles.
Progressive Suspension markets to the masses by advertising in all
of the BMW-specific magazines and some of the online ADV sites. It
also participates with the RawHyde Adventures touring company and
with MotoQuest Tours, partnerships that have led directly to product
development based on real-world feedback, Zemla says.
But it’s not just the wearable parts like suspension and tires that
feature high on the rotation of the serious adventure rider, it’s also all
about luggage capacity and comfort — the latter, especially. Nobody
wants to feel a rear-end that’s seen the seated portion of a cold ride
from Mexico to Canada.
At Dealer Expo this year, Saddlemen introduced a new heated seat
for the BMW GS, a product that the company’s director of sales and
marketing, Ron Benfield, says has been greeted with enthusiasm by
BMW dealers who predict strong sales.
“I think the cool thing about this is we’re seeing a huge demand for
these products,” Benfield says. “What’s happening is people are realizing that you can get one motorcycle to do a lot of things. You can
get yourself a nice adventure bike and get in the wind, go out into the
dirt, and then commute to work on it.”
Benfield says Saddlemen is looking to fill all the needs of the growing adventure market, including those for riders who use the bikes
for long-distance riding and those who do it to beat the blues of the
everyday commute.
ESCAPE THE DAILY ROUTINE
Another big player in the ADV aftermarket segment is Touratech USA,
the U.S. arm of its 20-year-old parent company located in Germany’s
Black Forest. The company has a retail store in Seattle, but also offers
dealer pricing on its lineup of specialty products.
The store’s general manager, Paul Guillien, says the rise of the ADV
market and the jump in new vehicle offerings from the OEMs validates
the category that BMW pioneered years ago with its big GS bikes. It’s
made people realize that they can get a motorcycle that is as practical
as it is fun to ride, he says.
He offers that most ADV bikes are quite simply “function-first”
motorcycles.
“I think they’ve got a real appeal. Just the aesthetics of the bikes:
when you see the photos of these rugged motorcycles and you see
them in these places where you don’t normally see big motorcycles,”
Guillien says. “They realize they can pack up their gear and go out for
weekend, a week a year. It’s totally liberating to know you can pack up
your bike and head out on the road.”
Touratech makes or carries all the parts and accessories to fully
outfit a bike for the road, from hard bags and skid plates, to crash bars
and navigation accessories. All of this designed for a customer base
that includes riders who come from heavy off-road racing and riding to
those won over by the earthy appeal of the category.
“It’s kind of an escape from the daily routine,” Guillien says. “You
can escape just by getting on these motorcycles.”
More products geared for the road
Can you see me now?
Hi-Viz is the buzzword in motorcycle products these days, and
Cycle Case has this new lineup of soft luggage available in black or
the eye-catching high-visibility color at left. The line is one of the
product offerings from Directline USA, a new wholesale distributor
founded by industry veteran Joe Parr.
fou
The setup includes saddlebags, a tail bag
Th
and a tank bag. All are built from heavy-duty
an
Maxtura ballistic fabric and feature reflective
M
side logos for extra visibility.
sid
The saddlebags have heat-resistant shields
Th
underneath. Rain covers attached to the bag
und
and tail bag with quick-release buckles. The
tank bag features a see-through top window
built specifically for a GPS, a mobile device or a
map. All three feature clip-on key holders.
map
Contact: Directline USA, 972-424-7900,
Co
www.directlineusa.com
w
M AY 2 0 1 2 D E A L E R N E W S . C O M
31
SALES — TOURING MARKET PRODUCT OVERVIEW
Racks for the outback
New from Black Dog Cycle Works are
multifunction rear racks for the KTM
950/990 Adventure, Super Enduro and
the BMW F800GS and F650GS twins.
The racks are built from 1/4” aluminum, are hard-anodized black and
feature large-holed tie-down points.
Riders can mount Rotopax carriers for
water and fuel containers or use Black
Dog’s Winch Support Plate to attach
a Warn Xt17 or RT15 electric winch.
Contact: Black Dog Cycle Works,
208-263-0438, www.blackdogcw.com
A modular tail bag system
New from Twisted Throttle is the DrySpec D66 waterproof motorcycle dry bag modular packing system. The
setup combines the D38 and D28 dry bags for 66 liters
of storage, and allows for quick and easy mounting using
Quick Connect straps and daisy-chain mounting straps.
The D38 has a rigid core structure and is more like a topcase while the D28 features the roll-top design making
for easy access without detaching the bag from the bike.
The D66 system retails for $179.99. Contact: Twisted
Throttle, 855-255-5550, www.twistedthrottle.com
SUCCEED BY CHOICE
Choose from over 1300 top quality aluminum accessories
Modular Display System
www.rizoma.com
For more information visit www.Dealernews.com/readerservice
32
DEALERNEWS.COM
M AY 2 0 1 2
FRONT: 25X8.00R12 / 26X9.00R12
27X9.00R12 / 26X9.00R14
REAR: 25X10.00R12 / 26X11.00R12
27X11.00R12 / 26X11.00R14
For more information visit www.Dealernews.com/readerservice
SALES — TOURING MARKET PRODUCT OVERVIEW
A better sprung Beemer
BMW’s small-bore ADV superstar, the F800GS, gets Progressive Suspension love with the 465 Series monoshock featuring
remote adjustable preload. The 46mm bore shock has been
valved, sprung, tested and equipped with deflective disc
damping, threaded body and five-position rebound adjuster.
Contact: Progressive Suspension,
877-690-7411, www.progressivesuspension.com
Saddlemen’s got your back(side)
S
Aggressive adventure touring riders are the target for Saddlemen’s
A
Adventure Track seat, which features a hybrid design combining the
A
ccompany’s Saddlegel and Gel Channel design, and an optional seating
element. The package is designed to offer comfort and support, while
e
rreducing shock, vibration and pressure on the perineum. It is covered
with a weatherproof microfiber cloth and a rubberized cover for the
w
pillion/cargo area. The saddle has fitments for most of the popular ADV
p
bikes from BMW, Ducati, Honda, Kawasaki, KTM, Suzuki, Triumph, and
b
Yamaha. Contact: Saddlemen, 800-397-7709, www.saddlemen.com
No more mush for Kawi KLR650
Progressive
Suspension now has a high-performance front suspension for
rogressive Suspensio
monotube fork cartridge kit. The kit reportedly
Kawasaki’s KLR650 with its monotu
OEM equipment and
offers better handling and ride quality over the O
includes gas-charged monotube dampers and custom-tuned ffork springs.
includes
The kit fits 2008 through current KLRs, replaces all internal parts and includ
a lifetime warranty. Contact: Progressive Suspension, 877-690-7411,
www.progressivesuspension.com
Crankin’ communicator
MOTORCYCLE COOLING VESTS & Accessories
Use PROMO CODE “DN313”
CONTACT US
1-888-823-2665
www.techniche-intl.com
Don’t let the temperature outside ruin your ride !
For more information visit www.Dealernews.com/readerservice
34
DEALERNEWS.COM
M AY 2 0 1 2
The Interphone F5 Bluetooth Communicator
has an effective range that starts at 0.8 miles
and, when daisy-chained together by up to
six riders, stretches to 1.5 miles. The system
also allows all six riders to talk to each other
at once. The communications device carried
by Twisted Throttle features an A2DP stereo
that accommodates wireless music, GPS and
telephone calls and is 100 percent waterproof. Other trick features include 700 hours
of standby and 11 hours of talk time or music
streaming, voice-activated head unit and a
text-to-speech function that lets riders listen
to text messages. The F5 retails for $299.99
for a single unit kit; $499.99 for a Twin Kit.
Contact: Twisted Throttle, 855-255-5550,
www.twistedthrottle.com
DON’T GET LEFT BEHIND!
The world of retail is incredibly challenging.
Without proper training and product knowledge,
you could fall behind the curve by those better
prepared. Convenient, online, interactive
product training for premium aftermarket
brands is now available… and did we
mention it is free? Forget the school of hard
knocks, enroll in PowerSportsU today!
LEARN... at PowerSportsU.com
TM
For more information visit www.Dealernews.com/readerservice
SALES
Rise of the American
sportbike?
MOTUS MOTORCYCLES LINES UP ITS ‘WELL OILED’ DEALER NETWORK
WITH PREMIUM SPORT TOURING MOTORCYCLES
by Dennis Johnson
WHEN TIM AND NAN WOODSOME of
Springfield, Mo.’s Cruisin’ 66 lost their Big
Dog Motorcycles franchise, they started the
search for a brand that not only fit the theme
of their store, but also would complement
their Victory lineup.
It had to be a motorcycle line, because
that’s the sole focus of these Top 100 dealers
— from the vehicles and PG&A they carry to
the atmosphere they try to foster. They wanted a sportbike line but weren’t interested in
any OEM that operated in
multiple vehicle segments.
Not even Polaris’ roster
of four-wheelers sounded
interesting. They wanted
something with a high-end
Euro-flavored vibe.
Enter Motus Motorcycles’ two new Americanmade sport touring
models.
“We’ve really looked at
the big picture and saw
that there was an opportunity for an American brand, something that’s
a high-end quality product that might attract
the person who wasn’t looking for a Victory,
but also the person who wouldn’t look at a
chopper,” says Tim Woodsome. “The Motus
really has that element. You have the bags.
You have the sport. It’s something that’s very
timely. They’ve taken these wonderful components and put them together in a package
that you can’t help but know would be fun.”
The Woodsomes — along with seven
other dealers — make up the initial list of
authorized Motus dealers. The Birmingham,
Ala.-based manufacturer announced its initial
dealer network, MSRPs and standard and
optional equipment in March during Daytona
Bike Week. More are planned by fall.
Motus now moves into the next chapter
in its story. In 2009 founders Brian Case and
Lee Conn announced they were developing
a “revolutionary,” V4-powered sport touring
motorcycle. The narrative played out in a
series of YouTube videos documenting devel36
DEALERNEWS.COM
M AY 2 0 1 2
opment of the company’s proprietary 1650cc,
165hp motor, a cross-country tour showing
off early prototypes, and then a Daytona
press event unveiling of the MST and MST-R.
The first stores will begin receiving their
first shipments of 2013 MSTs in the fall. The
Woodsomes are anxious to get going.
“We have a situation here where we have
a high-end, somewhat expensive, exclusive
motorcycle. The average young man who’s
going to go out and get a Gixxer or R6 is not
the customer,” Tim Woodsome says. “There’s
something about [the Motus] that’s going to
appeal to a lot of people who want to have
that exclusive motorcycle. We’ve already
been contacted by several people who want
to be on the list.”
Motus’ bikes present the opportunity to
recapture some of the luster of an Americanmade sportbike lost since Harley-Davidson
closed Buell. The most recent launch of
motorcycles under the Erik Buell Racing
marque now gives the market two homegrown options.
Only a handful of moto-journalists previewed the prototype bikes that Case and
Conn toured around the country, but the reviews came back rosy. After giving allowances
for the inherent issues of reviewing a prototype, Cycle World’s Blake Conner reported
in July 2011 that once the kinks are fixed it
should be “one hell of a fun motorcycle.”
Conner did note, however, that there were
obstacles to overcome in establishing a new
bike brand and new motorcycle, but added
that given Motus’ by-design niche market
and low production numbers, it has a chance.
At Battley Cycles in Gaithersburg, Md.,
Motus is expected to be a natural fit. The
store’s namesake owner, Devin Battley, is a
lifetime racer who worked with Erik Buell from
the beginning. He even owns the RR1000
with VIN No. 1 stamped on it. Battley didn’t
know the owners of Motus, but “was very
much interested in the American boutiquebuilt performance motorcycle,” says John Hardison, the
store’s marketing coordinator.
“He got in contact with them,
and Lee Conn came up here
with his prototype and let him
ride it. Devin came back from
the ride and said, ‘I want to
sell this motorcycle.’”
The 27-year-old dealership has always carried
premium vehicle brands, and
also focuses on higher end
aftermarket gear brands.
“Now here comes this bike out of Alabama
that’s an American-made, handcrafted bike,”
Hardison says. “They set out to make this
fantastic sport touring motorcycle, and it fits
in perfectly with what we’re trying to convey
to the enthusiast who walks in here, which is,
ride the best.”
Launching such a unique new motorcycle
brand and network carries risk, especially
given the number of quirky marques that
have come and gone from the market, says
Tom Hicks, owner of Top 100 dealer Southern
California Motorcycles in Brea, Calif.
Hicks says he stays away from startups and
is taking a wait-and-see approach with Motus.
An industry veteran both as a retailer and as
an OEM employee, Hicks says he knows the
logistical nightmare that goes into manufacturing and testing a new bike and building an
adequate dealer network — from parts supplies to warranty support. If none of it works
out, it’s always the customer who loses out in
the end, Hicks says.
‘LOW VOLUME, HIGH MARGIN’
The retail price of the MST and MST-R —
$30,975 and $36,975 — definitely put the
bikes in rarified company, but the sticker
number isn’t that far out of line. And while
the economic woes of the last few years have
hurt sales, those bikes in the premium price
range still had a steady stream of buyers.
Motus’ Lee Conn says the prices accurately
reflect the quality and value of an “heirloom
quality” motorcycle. The company will be
hand-building, in small production numbers,
bikes aimed at a very specific buyer, he says,
and will carry a two-year, limited warranty.
Motus says it knew that its dealer network
wouldn’t trend toward high-volume, big
brand dealerships. The owners identified
stores filled with diehard enthusiasts committed to selling a premium brand. “This is not a
high-volume opportunity,” Conn says. “This is
a low-volume, high-margin opportunity.”
Conn says the company set out to make
things easier on its dealer network by creating a motorcycle that is reportedly easy to
service and building what he claims is a common-sense ordering, stocking and marketing program. “It’s a very simple opportunity
where we tried to remove as many barriers as
possible for dealers,” he says.
Motus dealers will have to stock one of
each of the models on their floor at any time,
but won’t be required to dedicate any certain
square footage to the brand or have any certain size or type of signage, Conn adds.
Most of the charter dealers are on the east
side of the U.S.; however, Conn says there will
be a march westward, with California likely
the brand’s biggest market.
The company says it has lined up floorplan and consumer financing, but would
not identify lenders to Dealernews. It also
says that it is working to build a “highend” line of gear.
At RPM Cycle in Farmers Branch, Texas,
store manager Boris Loera says Motus will fit
into the dealership’s all-European lineup. He
adds that RPM Cycle should have no problem
selling the pricey bikes, given they already
sell many premium-priced motorcycles into
the Dallas/Fort Worth market.
RPM in early April had already presold one
Motus, and Loera says they have a number of
curious customers. “When Motus was doing
its nationwide tour, we had about 10 days to
prepare for them to be here … and we had
50 customers in here looking at the bike,”
he says. “This is going to be a neat product.
The fact that it’s American-made makes it that
much better.” Visit www.dealernews.com/
Motus12 for more.
For more information visit www.Dealernews.com/readerservice
M AY 2 0 1 2 D E A L E R N E W S . C O M
37
SERVICE
Make your parts area
a ‘slave’ to profits
OBSOLETE INVENTORY WILL SUCK THE LIFE OUT OF YOUR P&L. HERE’S HOW TO TIGHTEN THINGS UP
by Holly Wagner
KNOW
YOUR Ds
DISCOUNT IT. Discount
obsolete items to market
value and set up a sale
area in the store to move
them out the door.
DONATE IT. Donate used
clothing and accessories
to charities and fundraisers. If you can’t send it
back to the supplier and
you are in the right tax
situation, you can donate
it and take 100 percent off
your taxes.
DUMPSTER IT. Some
metals bring good prices
from recyclers. If you can’t
move an item by discount
or as a donation, bite the
bullet and throw it out.
WITH AN
ACCURATE PARTS
INVENTORY, YOU
CAN…
… Track sales by
employee to help improve
their performance.
… Move high-turn stock
nearest the parts counter
so you’re not chasing
after high-demand items
all the time.
…Manage your
inventory more closely
with supplier programs.
38
DEALERNEWS.COM
THE RECESSION HAS FORCED most dealers to take
a hard look at how much they spend, review return
on investment and determine how to run a cleaner,
leaner operation. But some dealers may be overlooking their most promising profit center: the parts
counter.
Steve Jones of Gart Sutton & Associates wants you
to knock it off. Specifically, he wants dealer principals
and GMs to start empowering parts managers to
take charge of their departments and turn them into
the most profitable department in the dealership.
That means implementing an Open-To-Buy system
to make inventory management a slave to profits, he
told an overflow crowd at Dealer Expo’s “Managing
the PG&A Department” seminar.
So what is an Open-To-Buy system? It’s a method
for managing inventory in a tighter, smarter way that
squeezes every dime out of the space and budget
that a dealership allocates to parts.
“Obsolete inventory will suck the life right out of
your department and your dealership,” he said. Topperforming dealers have only 1.9 percent obsolete
inventory, but that’s only one dimension of Open-ToBuy. The system also helps identify opportunities to
hire and train the right people, give them ownership
of their roles at the dealership and, most importantly,
build a cushion that can see a dealership through
lean times.
SORTING IT OUT
Essentially, Open-To-Buy is the difference between
the amount of any type of inventory in stock, and the
budget for that category of inventory. “It says, ‘I have
set a number for this category, and I don’t have that
much in inventory, so I have this much space to buy,”
he explained.
That helps parts managers make the most of
supplier programs like preseason buying, return guarantees and incentive programs. It also forces them
to constantly reevaluate what’s selling and, above
all, make sure as little inventory as possible ever gets
stale on the shelf.
“It helps you select high-volume, high-turn inventory,” Jones said. “Cash flow is king.”
You must understand your parts budget, where
it goes and what’s moving. This helps set goals for
the dealership as a whole and for each employee in
M AY 2 0 1 2
the department — goals that can help with hiring,
Steve Jones says parts managers should have the authority
to do what it takes to make their departments profitable.
training and management. “It gives every category a
number that you want to manage to,” he said.
First, inventory is sorted into geographical and categorical categories. Geographical inventory consists
of items that are in a fixed location in the dealership,
such as a display of tires or other large or heavy items
that will always be in the same place, or a cabinet
that keeps all the small parts together. Categorical is
for inventory that may be moved around the store,
like a display of jackets that may be moved based on
the season.
“If you haven’t gone through and re-categorized
your inventory properly, you can’t track any of this
stuff,” Jones said. “Clothing and accessories are two
very different animals.”
The two main parts of an Open-To-Buy system
are sales projections and calculation of the inventory
levels needed to meet those projections. For projections you need to know past sales, what inventory is
in stock and how it has met past demand, and the
dealership’s goals for the department.
That means cycle-counting inventory, a rolling
process of counting at least one bin (or a specific
quantity of part numbers) per day, every day. Any
employee can do the counting, or you can split the
task among employees. It helps keep staff busy and
engaged while keeping inventory accurate. The goal
is to get complete and accurate inventory count at
least six times a year. Parts managers should spot-
check the counts by running a random 25-item report and checking
those items.
“There’s nothing worse than you promising something to the customer because the DMS says the part is in inventory and it isn’t there,
or the guy who drives two hours from Podunk because you told him
you have the part he needs and it isn’t there,” Jones said.
Accurate inventory is good for more than just tracking stock. Parts
managers can track sales by employee to help them do their jobs
better. They can move high-turn stock nearest the parts counter to
minimize chasing after high-demand items. And the information can
be invaluable in an emergency: One dealer at the February seminar
said his store had a fire that gobbled up $3 million in inventory. His
count was so tight, the insurer paid 100 percent of his losses.
Another benefit is managing inventory more closely to supplier
programs. Look for good return terms, Jones counseled, to keep
from getting stuck with unsalable merchandise. For those just starting
an Open-To-Buy system, that advice may come late. “If inventory
levels are high across the board, there is no easy solution,” he said.
“Reduce the inventory as quickly as possible. Don’t tie up dollars
where they are not needed.”
How long do you hang on? What is considered a slow mover? “Six
months with no sale. If it is not a seasonal part, I am going to take a
really hard look at whether I want to keep it. I don’t want it to get to
12 months,” Jones said.
At that point, it’s obsolete. “Run a monthly non-movers report;
bimonthly is better. Seasonality should not impact the 12-month
report,” Jones said. Then pull the obsolete items and “get rid of it.
It won’t go up in value.” Start by using return or obsolescence programs that suppliers offer. After that, it’s time for the three Ds:
• Discount it: Discount obsolete items to market value to get them
out the door. “Customers want to know two things: what’s new
and what’s on sale,” Jones said. Set up a sale area in the store to
move it out.
• Donate it: Donate used clothing and accessories to charities and
fundraisers. If you can’t send it back to the supplier and you are
in the right tax situation, you can donate it and take 100 percent
off your taxes. “Take the writeoff and dump it,” Jones said.
• Dumpster It: Some metals bring good prices from recyclers. But
keep in mind that shelf space is worth more than dead inventory.
If you can’t move an item by discount or as a donation, bite the
bullet and throw it out.
Some parts managers are creative about use of programs. One
dealer at the seminar said his parts manager buys new discounted
parts at liquidation sales, then returns them to suppliers who give 100
percent credit on new returns — a move Jones applauded.
By managing inventory accurately and on budget, dealers can
reach profit margins of 35 percent to 40 percent on PG&A. Compare
that to the margins on new units, used units and service, and the
value of Open-To-Buy becomes clear.
“When unit sales are tight, PG&A and service should keep you
profitable,” Jones said. “Get that overhead absorbed so at least you
can keep the doors open and keep everyone employed.”
For more information visit www.Dealernews.com/readerservice
M AY 2 0 1 2 D E A L E R N E W S . C O M
39
SERVICE
How to cover yourself in a legal case
WANT TO LESSEN YOUR LEGAL RISK? THEN ‘DON’T GIVE IT AWAY’
FUEL FOR
THOUGHT
Dave Koshollek
teaches sales and
service classes for
dealers. Contact
him at dakoenter
[email protected],
or via editors@
dealernews.com.
From Indy:
There’s a lot more
from Dave’s Indy
seminar on reducing
legal risk in the service
department. To read
the full version, visit
www.dealernews.
com/CYA.
40
DEALERNEWS.COM
AT THIS YEAR’S Dealer Expo and American V-Twin
Dealer Show, I presented a Service 101 seminar
divided into three areas of discussion:
Get It In: Best practices to attract and capture
service work
Get It Right: Best practices for achieving high
service proficiency
Don’t Give It Away: How to reduce risk and avoid
expensive lawsuits.
The well-received Don’t Give It Away section
focused on the seven high-risk areas of dealership
product liability. Before I get into this, however, there
are a few general thoughts I want to share:
1) Morally, we should make customer safety our
No. 1 priority. Motorcycles are supposed to deliver
pleasure, not pain.
2) Collectively, dealership personnel should be
aware that anyone in the store can be named in a
product liability suit.
3) Product liability cases represent huge economic
potential, with millions of dollars paid out annually in
legal fees and settlements. Expect the plaintiff’s (injured party’s) legal team to work diligently to get every
dollar they can from you.
4) In most states, it is inadmissible to use rider error,
even if it relates to rider impairment, as evidence in a
product liability case. The court will focus on your actions; making you prove your work was “free of defect
and reasonably fit for use.”
5) There is no perfect way to keep from being sued,
but you can reduce the financial impact by implementing better practices.
What follows is derived from information gathered
over the years from a variety of motorcycle industry
professionals; some of whom are legal experts. These
are excerpts from two of the seven high risk areas covered in my Dealer Expo seminar. I must state that I am
not a lawyer. If you need legal help, get professional
legal advice from an attorney who practices product
liability/personal injury law. .
VEHICLE SET-UP: FOLLOW THE OEM
To ensure the vehicle is operating properly, perform
the vehicle set-up according to the manufacturer’s
Pre-Delivery & Inspection (PDI) manual that includes
detailed vehicle assembly, adjustment and inspection
procedures. After completion, test-ride the vehicle for
several miles to verify it performs “as a proper representation of the product.” It’s also a good practice to
note the test miles and the route taken.
Know that in a product liability case, the plaintiff’s
legal team will inspect the wrecked vehicle, looking for
anything that was not assembled or adjusted per the
manufacturer’s set-up procedures. Non-factory modifications and improper set-up can swing the majority
M AY 2 0 1 2
of the responsibility onto the dealership. Note, there
is no good reason for a technician doing it “their way”
when a manufacturer’s PDI manual is available. Most
courts will presume the vehicle manufacturer knows
the best set-up procedures, so follow the PDI manual
to reduce your risk. If you believe the PDI manual is
incorrect, contact the vehicle manufacturer to report it.
The technician who performed the set-up should
check or initial each procedure he or she performed
and then sign the form. If the shop does end up in
court, the tech will have to testify what he did, how he
did it, and why. A properly completed PDI form can be
helpful to your defense.
DOCUMENTATION IS CRUCIAL
In court, the written word is what lawyers take to the
bank. If the dealership is sued, the plaintiff’s legal
team will pull the service documents associated with
the case. Visual inspection sheets, repair orders and
technician notes are just some of the documentation
that will be scrutinized. That’s why service documentation should be an accurate representation of all
transactions.
Visual Inspection sheet: Note the vehicle’s condition when received, such as mileage, tire pressure,
fluid levels, leaks, wear, signs of abuse or accident
and any cosmetic damages, just to name a few. Write
“customer states,” in their words to describe an issue
they reported.
Repair order: Individually list every repair or service
performed and the parts installed. If it’s a routine event
such as a 5,000-mile service, then you should have a
separate sheet identifying the actions and inspections
of that routine service event. If it’s a repair, be specific
as to what was performed; for example, “Replaced
rear brake pads” is specific; “fixed brakes” is not.
Note additional repairs needed, and have the owner
sign/initial that he understands the risk and is taking
responsibility for declining to have needed work done
now. Make sure the individual who signs the R.O. is
the vehicle’s legal owner.
Technician notes: Notes on paper or in the computer can be subpoenaed for evidence. Be like Sgt.
Joe Friday and write “just the facts.” Review notes
from a devil’s advocate point of view. Could the court
interpret what was written to have put the plaintiff at
risk? If so, rewrite it before you file it. Keep in mind
that altering the documents after a suit has been filed
could get you in a lot more trouble.
This has been a mile-high view of a very important
aspect of doing business. If, for any reason you think
you’re engaging in risky behavior, you should hire an
attorney for a professional legal opinion. After all, you
don’t want to give it away — after you worked so hard
to get it.
RK CHAIN & SPROCKET KITS
4RKVTX-RKVX12
Quality, Performance & Value
Q/A QUICK ACCELERATION ALUMINUM KITS
•
All Q/A Street Aluminum Kits feature RK’s premium
lightweight RX or XW ring sealed racing chain in
either gold or natural finish
•
All Q/A MX Race Kits feature works quality MXZ4
or MXU racing chain.
•
All Q/A kits feature an ultra-light 7075 T6 Vortex
aluminum rear sprocket in either clear anodized or
black Hardcoat PTFE paired with our
shot-blasted chromoly front sprocket
•
All Q/A kits are geared to increase
overall acceleration performance
RK Excel America Inc.
Tel: 760.732.3161
www.RKExcelAmerica.com
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1/10/2012 1:08:45 PM
4pgRKKitVortex12.indd 4
1/10/2012 1:09:18 PM
4pgRKKitVortex12.indd 5
1/10/2012 1:09:45 PM
RK CHAIN AND SPROCKET KIT TYPES
STREET
High-Performance
RK RX/XW-Ring Chain, Chromoly
Front Sprocket and Premium Case
Hardened Steel Rear Sprocket.
OE Gearing
Quick Acceleration
20,000 MILE WARRANTY KIT
High-Performance
RK RX/XW-Ring Chain, Chromoly
Front Sprocket, and Vortex Aluminum
Rear Sprocket in Either Silver or PTFE
Hardcoat Black
520 RACE CONVERSION KIT
525/530 SUPERSTOCK KIT
This high mileage performance kit
features precision cut case hardened
steel sprockets with matched OE
gearing and RK’s gold or non-gold RX
or XW sealed ring chain. Entire kit is
warranted to provide 20,000 miles of
street use. (Racing and chain neglect will void
Drop that 525 size chain for these 520
aluminum conversion kits. Features
chromoly front sprockets and Vortex
7075 T6 alloy rear race sprockets. Kit
is geared for racing use and contains
RK’s gold or non-gold RX or XW sealed
ring chain. (Rear sprocket is available in silver
Features RK’s performance sealedring chain, Vortex 7075 T6 aluminum
rear sprockets and chromoly shotblasted front sprockets. (Chain is available
warranty)
or black finish)
High-Performance RK RX/XW-Ring
Chain, Chromoly Front Sprocket and
Vortex Aluminum Rear Race Sprocket in Either
Silver or PTFE Hardcoat Black
in gold or non-gold. Rear sprocket is available in
silver or black finish)
High-Performance
RK RX/XW-Ring Chain, Chromoly
Front Sprocket and Case Hardened
Premium Steel Rear Sprocket.
Quick Acceleration Gearing
DIRT / ATV
High-Performance
Lightweight RK MXZ4 or MXU
Motocross Race Chain and Self-Cleaning
Vortex Aluminum Rear Sprocket in Either Silver
or PTFE Hardcoat Black
RK MOTOCROSS RACE KIT
Features lightweight RK MXZ4 or MXU
racing chain, self-cleaning Vortex
7075 T6 aluminum rear sprockets and
chromoly shot-blasted front sprockets. All MX race kits are geared for
quick acceleration. (MXZ4 Chain is available
There’s an RK Chain
and Sprocket Kit to
suit your riding
discipline. From racing
to casual riding, check
out our website for the
full application lineup.
Q/A 520 STEEL CONVERSION KIT
Drop that 525 size chain for these 520
steel conversion kits. This kit is optimized with quick acceleration gearing
and features RK’s RX or XW sealed ring
chain with a chromoly shot blasted
front sprocket and premium steel rear
sprocket. (Chain is available in gold or non-gold)
RKExcelAmerica.com
[email protected]
NEW!
High-Performance
Lightweight RK Motocross Racing
Chain, Chromoly Front Sprocket and Case
Hardened Premium Steel Rear Sprocket
Performance
RK XW-Ring Chain, Chromoly
Front Sprocket, and Either Premium
Steel or Vortex Aluminum Rear Sprocket in
Your Choice of Silver or PTFE Hardcoat Black
KTM GEARING KIT
RK STEEL MOTOCROSS KIT
ATV/OFF-ROAD KIT
Features lightweight RK MXZ4 or MXU
racing chain, self-cleaning Vortex
7075 T6 aluminum rear sprockets and
chromoly shot-blasted front sprockets. KTM Gearing Kits allow you to
choose from various gearing options.
The Steel MX kit offers the best in racing performance yet maximizes kit
longevity. Features performance RK
MXZ4 or MXU racing chain, chromoly
shot-blasted front sprockets and premium grade steel rear sprockets. (MXZ4
This off-road kit features RK’s performance XW sealed ring chain in gold or
non-gold finish, chromoly shot blasted
front sprockets and either a premium
grade steel rear sprocket or Vortex
7075 T6 alloy rear sprocket.
(MXZ4 Chain is available in gold or non-gold. MXU is
available in gold only. Rear sprocket is available in
silver or black finish)
Chain is available in gold or non-gold. MXU is available in gold only.)
Lightweight RK MXZ4 or MXU
Motocross Race Chain and Self-Cleaning
Vortex Aluminum Rear Sprocket in Either Silver
or PTFE Hardcoat Black
4RKVTX-RKVX12
in gold or non-gold. MXU is available in gold only.
Rear sprocket is available in silver or black finish)
*Black Vortex Sprockets are F5 PTFE Hardcoated.
*Silver Vortex Sprockets are clear anodized.
RK EXCEL America Inc., 2645 Vista Pacific Drive, Oceanside CA 92056
Tel: (760)732.3161 Fax: (760)732.3186 www.RKExcelAmerica.com
4pgRKKitVortex12.indd 2
1/10/2012 1:10:39 PM
SAVE THE
DATE
FEBRUARY 15-17,
2Indiana0Convention
1 Center3
SERVICE — TOOLS AND SHOP EQUIPMENT
Snap-on ratchets
get into tight areas
Snap-on Tools has released a 12-piece, 1/4-inch, 12-point
drive fractional low profile ratchet and socket sets that are
designed to get into tight areas. (Part No. 112RT.) Sets feature tools with thin, alloy steel handles, 72 gear teeth that
require minimal movement, and easy-action reverse levers.
Tools are nickel- and chrome-plated.
Contact: Snap-on Tools, 877-762-7664,
www.snapon/handtools.
Lincoln Electric expands
welding Protective gear
Form Lincoln Electric comes more than a dozen additions to the company’s Welding Gear line. All items can be viewed in Lincoln Electric’s Welding Gear catalog,
which can be obtained online (Bulletin E14.001), or by calling the telephone
number listed below.
Highlights from the product line include a split-leather welding apron, flameretardant welding lab coats and shirts, padded safety goggles and bifocal safety
glasses.
Contact: Lincoln Electric, 888-355-3213, www.lincolnelectric.com.
Designed for Motorcycle Dealers.
SG7
Seat & Guide
Machine
Lease the 777
package for
about $50
per day!
Profit from your
own cylinder head
machine shop with
the 777 package –
it’s all you need!
THE CUTTING EDGE
VR7
Valve Refacing
Machine
S7M
Surfacing
Machine
D E A L E R N E W S . C O M M AY 2 0 1 2
1-800-452-0534
www.rottlermfg.com
www.youtube.com/rottlermfg
www.facebook.com/rottlermfg
email: [email protected]
For more information visit www.Dealernews.com/readerservice
42
8029 South 200th Street
Kent, WA 98032 USA
+1 253 872 7050
MARKETING
Spreading Euro gospel
LONGTIME SEATTLE-AREA DEALER LAUNCHES SHOW
TO SPOTLIGHT EUROPEAN MOTORCYCLE, AFTERMARKET BRANDS
by Dennis Johnson
THAT THE PACIFIC NORTHWEST is a hotbed of European motorcycling is not lost on Jim Boltz, the man behind the Cycle Barn
Motorsports Group north of Seattle. But the collective group of
Euro motos have been under-represented at regional motorcycle
shows, he says. For dealers like Boltz, whose group includes a Triumph/Vespa/Piaggio store, this means losing the opportunity to put
such brands before a wide swath of the motorcycling community.
Boltz and Garrett Johnson, the general manager at his Euro store,
started brainstorming ways to broadcast their products — and the
community of Euro-centric dealers — to the waiting public. What
they came up with is Euro Moto 2012, an OEM and vendor showcase that launched in early March.
The show featured a collection of seven dealers from the greater
Seattle area representing Aprilia, BMW, Christini, Ducati, GasGas,
Husaberg, Husqvarna, KTM, Moto Guzzi, MV Agusta, Piaggio,
Triumph, Vespa and Ural. It also hosted more than 38 aftermarket
“We wanted to create an excitement about the European motorcycle brands
as a viable option in the market.” — Jim Boltz
vendors, each one chosen because of its appeal to European bike
enthusiasts. The seven dealers split the cost of holding the event —
with the goal of simply breaking even.
“We wanted to create an excitement about the European motorcycle brands as a viable option in the market,” says Boltz, who also
is the longtime director of Washington state’s Motorsports Dealers
Association. “We wanted to share the enthusiasm that these dealers
generate because they live, eat and breathe their brands — much
more than, say, the Japanese brands.”
According to Boltz and Johnson, the show attracted more than
3,000 attendees to the Lynnwood Convention Center for a day
of perusing Euro bikes, meeting fellow Euro-philes, checking out
such vendors as Dainese, Rizoma, Schuberth and Sidi, and attending seminars covering topics like packing tips for long road trips,
suspension and brakes, and taking better photos while on the road.
Aprilia reportedly even used the show as the opportunity to unveil
its new Tuono V4 R.
“We are ecstatic about it. I think the show could have been called
a success with half [the attendance] because of the quality of the
attendee,” Johnson says. “These were Euro motorsport enthusiasts and people who were interested in becoming owners of the
vehicles. It was a tight-knit group of people.”
Since the show, some of the exhibiting dealers have reported a
measurable, positive response from customers, Johnson says. And
his own store has seen a bump in bike and PG&A sales, along with
an increase in service customers. They even got a new employee out
of the deal, he adds.
ALL BY DESIGN
Photos courtesy of Mototainment LLC
In organizing Euro Moto, Johnson and Boltz set out to create an environment that would lead to sales. They required each aftermarket
M AY 2 0 1 2
DEALERNEWS.COM
43
MARKETING
“European brands are … some of the best options in motorcycling right now
in the U.S. market.” — Garrett Johnson
vendor to be represented by the brand itself
or its distributor. The idea was to highlight
a broad range of products from each of the
brands — far more products than a dealer
could stock — and then funnel the sales to
the dealers in attendance.
“We also provided space for vendors to
fully accessorize vehicles from one of the
dealerships and put them on display in the
main hallways,” Johnson says.
This gave attendees the chance to check
out all the products away from a sales-type
environment and then go find the vendor to
get more information. The setup also gave
the dealers real-time market intelligence on
what products they might consider stocking.
Knowing that most European bike enthusiasts are mega-mileage riders, Johnson
launched an aggressive marketing campaign via TV, radio and social networks that
stretched as far north as Vancouver, British
Columbia, and south to Portland, Ore. He
also reached out to like-minded local businesses such as coffee shops and restaurant
44
D E A L E R N E W S . C O M M AY 2 0 1 2
to post fliers. Each of the dealers that exhibited reached out to their customer bases
through in-store advertising and through
social media.
They also contacted a few high-end
European car dealerships — Mercedes of
Lynnwood, University Audi, and Jaguar-Land
Rover of Lynnwood — to provide a new
C63 AMG, a G550 SUV, an Audi R8 and an
XKR. The vehicles, all of them in white, were
parked at the entrance of the convention
center.
Johnson says they wanted to create a
thoroughly European feel at the show and
the cars added to this element. “It got
people pumped,” he adds.
Boltz and Johnson then lined up Riders
for Health as the show’s designated charity.
They raised more than $3,500 for the organization through T-shirt sales and a raffle
that included a grand prize of two tickets to
the 2012 Laguna Seca MotoGP Day of Stars,
two all-access passes to the race weekend,
access to Dunlop Tires’ hospitality suite, a
For more information visit www.Dealernews.com/readerservice
new set of Dunlop tires, $1,000 in travel expenses and a five-night hotel stay. The prize
was arranged by Mike Buckley and Brent
Durfee from Dunlop.
Plans are underway for Euro Moto 2013,
when Boltz and Johnson want to double
the exhibit space and add seminars. They’re
also hoping to bring on a title sponsor to
add some cache to the show and to help
bump up the advertising budget.
“European brands are no longer the
niche brands that are hit or miss on whether
you’re going to find support and availability,” Johnson says. “These are well-supported brands producing some of the, if not
most of the, best options in motorcycling
right now for the U.S. market.”
For more information on Euro Moto,
check out www.euromoto2012.com.
MORE EURO? See our cover story
on Ducati/Triumph Newport Beach
starting on page 14.
Did He REALLY Just Mention
AngryCustomer | December 17, 2011
RE
LINE
AL ON
REVIE
W
Whether they have a compliment or a complaint, the Internet
gives people a place to be heard by hundreds of thousands of
people . What ‘s being said about your dealership online?
Take control of your online reputation with Powersports
Marketing’s Online Reputation Management solution.
They expressed an almost total lack of concern for my
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For more information visit www.Dealernews.com/readerservice
SCAN ME!
MARKETING
Direct mail, telemarketing still work
SUPPLEMENT YOUR ONLINE MARKETING WITH STRONG OFFLINE EFFORTS
A former dealer
principal, Rod
Stuckey is the
founder and
president of
Dealership
University and
Powersports
Marketing.com.
Have a question
about marketing
best practices?
Contact him
via editors@
dealernews.com
On the
Web:
Visit www.
dealershipuniversity.
com to learn more
about courses and
other tools you can
use to improve your
business.
46
DEALERNEWS.COM
I’M A BIG FAN of online media for marketing your
dealership. I’ve experienced much success in executing campaigns with email, Google Adwords,
Web landing pages, Web-banners, Facebook, etc.
However, I also believe that diversity equals stability. This is one of many reasons I’m also a huge fan
of offline media — in particular, direct mail and
telephone.
A little-known truth is that nearly every great
business owner has built his or her business on
good direct-response marketing using direct mail
and telephone. In fact, right now, in the middle
of the information age, good ol’ direct mail is still
a $45.2 billion industry. And the telemarketing
and call center industry is still north of $20 billion,
despite constant attacks from the Federal Trade
Commission.
Why? Because it works.
It troubles me when I hear dealers and experts
say that direct mail doesn’t work. That’s B.S. If you
don’t think it works, ask yourself why the execs
at Google consistently invest in millions of direct
mail pieces to sell their pay-per-click advertising.
They also employ telemarketers to make cold calls
for the same purpose. Also, the Internet Retailer
Conference and Exhibition, which touts itself as
the world’s largest e-commerce event, is sold via a
32-page direct-mail piece.
According to nonprofit research, “Nothing outperforms direct mail for new donor acquisition.
Nonprofits wish that social media, Web sites,
email, etc. could do this job as well, but so far,
extensive experimenting by the entire non-profit
world has failed to come up with any way to survive and grow without relying on direct mail.”
According to news reports, e-commerce sales
over the holidays were up 15 percent year-to-year.
But, how much of that purchasing was driven there
from print catalogs delivered to mailboxes? My
wife ordered Justice Clothes online for our girls
after receiving its catalog, where she was given
a special discount coupon code. She also placed
orders online with Omaha Steaks and Patagonia,
but only after perusing through direct mail that
was sent to us. E-commerce companies also use
offline media to upsell: Omaha Steaks now calls us
to replenish as we consume.
According to Epsilon research, 60 percent of
consumers say they enjoy checking their mailbox
and receiving mail (and my guess is motorcycle
enthusiasts receiving motorcycle-related messages pumps at least another 15 percent into that
figure). The same study concludes that 65 percent
say they receive too many emails to open them
all. U.S. Postal Service data says that 98 percent
M AY 2 0 1 2
of consumers retrieve their mail from the mailbox
the day it is delivered and 77 percent sort through
it the same day.
BUT IT’S ALL IN THE DETAILS
Little hinges can swing big doors, and one small
detail can sabotage an entire direct-mail or phone
campaign.
For example, who you’re mailing to makes a big
difference in your success. The reason direct mail
doesn’t work for some dealers is because they’re
sending it to the wrong people. Data hygiene, list
segmentation, and ensuring the message is relevant and compelling are all key details of a successful direct-mail campaign. Methodically figure
out who you are trying to reach, and then match
your message to the targeted recipient.
Details are equally as important when it comes
to the telephone. Sales are missed by a few
words, not a few dollars. With a professionally
crafted script, one salesperson can make a call
to an unsold prospect, or a repeat customer, and
provide new information that converts him into
a kept appointment. Alternatively, give another
salesperson the same unsold prospect to call and
let him just wing it, and he’ll tell you the customer
isn’t interested.
You must use offline media consistently to maximize customer retention, increase their frequency
of visits, and re-activate lost customers.
Consider a customer’s journey from the point
of purchasing a new bike all the way through 24
months when he or she is now statistically considering a trade. Here are some touch points you can
leverage for offline media to boost sales:
• Follow-up. “Thank you for your purchase.
Here’s an incentive to take our CSI survey and
come back to the store.”
• Related add-ons. “Hope you’re enjoying your
new bike. Have you had time to review all of the
accessories available?”
• The First Service Reminder.
• Birthday greeting (for customer)
• Birthday greeting (for bike)
• Service Reminder No. 2.
• Invitation to your store’s upcoming event.
As mentioned, I’m a fan of online media, and
you can utilize these touches with email, too.
Multi-touch and multimedia have been proven to
boost response. However, tangible materials such
as direct mail trigger a deeper level of emotional
processing than electronic. Telephones allow
you to talk, one human to another, and develop
an authentic relationship. That’s hard to do on
Facebook.
SAVING PEOPLE MONEY
on more than just car insurance.
SM
Call 1-800-442-9253 today or visit your local office.
Some discounts, coverages, payment plans and features are not available in all states or all GEICO companies. Motorcycle and ATV coverages are underwritten by GEICO Indemnity Company. Boat and PWC coverages are written through non-affiliated insurance companies and
are secured through the GEICO Insurance Agency, Inc. GEICO is a registered service mark of Government Employees Insurance Company, Washington, D.C. 20076; a Berkshire Hathaway Inc. subsidiary. © 2012 GEICO
For more information visit www.Dealernews.com/readerservice
Products & services sHoWcAse
accessories
accessories
Photochromic
Lenses
See our entire line with Day2Nite lenses at...
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accessories
accessories
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Business for sale
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advertising
Cruise Ahead of
the Competition
For more information visit
www.Dealernews.com/readerservice
48
D e a l e r n e w s M AY 2 0 1 2
For more information visit
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For more information visit www.Dealernews.com
Dealernews.com
Products & services sHoWcAse
Business services
cHeMicals & luBricants
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career opportunities
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Dealernews.com
M AY 2 0 1 2 D e a l e r n e w s 4 9
Products & services sHoWcAse
display fixtures
distriButors
Rock Eagle Store Fixtures
WORLDWIDE
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DISTRIBUTOR
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The GrooveTube System
Our unique
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The new GT-TShirt Rounder!
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distriButors
From high performance parts for racing, to the widest selection of repair
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advertising
BECOME A NEW
CAR DEALER
Dealers Call for Discount!
NEW ENERGY VEHICLES
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www.Dealernews.com/readerservice
50
D e a l e r n e w s M AY 2 0 1 2
For more information visit
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Dealernews.com
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KK Motorcycle Supply
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We have everything you need
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flooring
❝
DEALERS CHOICE
We gave a great deal of thought to the floor covering for our
showrooms. We were impressed by the durability and ease of
maintenance of Stonecarpet®.
We were also impressed by the enthusiasm of other dealers
who had Stonecarpet®. But even more than these factors,
we were excited by the design possibilities. We have a
unique and striking floor design. The floor has proven to be
everything we had hoped and we are truly delighted
with Stonecarpet®
– Keith Morrison – Thunder Creek & Tifton Harley Davidson
Specifier Products, Inc.
Toll Free: 800-697-9109 • www.stonecarpet.com
For more information visit www.Dealernews.com/readerservice
Dealernews.com
M AY 2 0 1 2 D e a l e r n e w s 5 1
Products & services sHoWcAse
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parts
perforMance parts
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Repeating an ad ensures it will be
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For more information visit www.Dealernews.com/readerservice
52
D e a l e r n e w s M AY 2 0 1 2
Dealernews.com
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perforMance parts
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Smart editorial.
Smart marketing.
The bene
fits of ATG
UP YOUR
CUSTOME
ATT
GEARING
VOL.
0
R 201
EMBE
SEPT
O. 9
.COM
46. N E R N E W S
L
DEA
RS MAY
IT ALWAYS
BE THE
AMAZES
around
BEST THING
ME to
without
see people
even the
gear. To
YOU CAN
bare minimum riding
be
DO FOR
what was honest, when
sell you.
THEM
I was young, of riding
necessary
I guess
and as
to keep
I
little
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me warm only wore
I suppose as possible to
on the
a rundown
other hand, that’s good enough.
look cool in the winter
it’s
on how
riders these probably not
in
don’t get
before
that much the summer.
I drop my this compares
days. Of
much of
on the
different
to
course
money
want to
street,
when I
on a signifi that. I know that
with
know
it was the
much gear
cant purchase,
value/benefi or at least
early ‘60s started to ride
feel that
and there
for riding available. Most
I
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only place t for my dollar.
wasn’t
of what
only differed
the most
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to get
made of
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is through
from
leather
about the
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waterproof.
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ducted
that it was
opinion
cotton,
by mainline periodic comparison
on gear
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that offered Outside of the
motorcycle
I subscribe
nominally
helmet,
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to four
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mainline
of protection. much
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the value
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I came
of them
to
and leather set of good
of a year,
and Cycle
will do
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a review
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gloves,
gear with
and other
or a comparisonor more
jackets,
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features
cushioning
pants,
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and materials.
helmets
of boots,
and abrasion-resi foam
the
buy better
and other
they cover reviews are
Part of
gear is
not all-inclusive, accessories.
what motivates stant
the main
as resilient
the knowledge
that post
brands.
but generally
me to
as it was
reviews:
There are
that
ago, and
10, 15
ruiser.com,
motorcyclealso websites
or 20 years my body isn’t
an impact
motorcycle.
usa.com,
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in
my
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garments
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keep you
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ible amount
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were 9.4
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and back
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to me by
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a motorcycle owners, and
potential
as
recently
a
from a
25
customers.
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that
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who, while
will
mountains,
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less motorcycle never see
of
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lost his
is most
an ad for
and clipped a truck crossed
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by-feature
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when the
over
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Vaughan Web:
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of any
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yellow
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the motorcycles
of us wouldn’t
wearing
magazine attach
he will
with more
for the
have to
reviews
they sell,
consider
information
road tests,
of gear
rest
walk with
this a
to their
comparisons many dealers
about
cal running of his life. Had
the aid
merchandise.
and zip-tie
of a cane
he been
copy or
and other
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them to
are some
clip
wearing
goodbye shoe, in all likelihood
product
bikes. This
the
the typito his entire
ones to recent
reviews
he would
approach handlebars of
get you
I have to
foot.
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their showroom
have said
started:
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reviews
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to
Tour
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wear a
boots,
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the editors I’m most familiar
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on a “spirited cool, outer
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with
who write
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and experience the reviews.
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that some
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or her?
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OUT OF
MY
MIND
Mike Vaughan
is the former
publisher
of
Dealernews.
You
can reach
him
at mvaughan@
mikevaugha
n.
com or
via
tors@dealeredinews.
com.
About
unbiasethe only place
consum d opinions to get relative
er press. on gear
ly
is the mainlin
e
N
IRON
PO Y
t
OHIO’S
BLE WITH
WE RUM OF PG&A
MASTERS
SECTION:
SPECIAL
0
201
AR
RD FOR
GE
N FORWA STREET
AND
FASHIO
AD
OFF-RO
K
OLLE
NG TIPS
DAVE KOSH
ES
ANDISI
MERCHYOUR
TO SELL
SERVIC
ET
MARK
UTV IT’S NOT
WHAT? GLOOM
GUESS
AND
ALL DOOM
dn0910_0
68.pgs
08.12.201
0 13:30
A VA
STA
F/X 1a
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55
Missing supper
in Sayre, Oklahoma
YOU CAN BE GRATEFUL FOR A BOOMING BUSINESS AND A FULFILLING
PERSONAL LIFE, BUT YOU STILL LONG FOR GRANDMA’S BISCUITS
TIE-DYED
TALES
Rick Fairless is the
owner of Strokers
Dallas (a Top 100
dealer), Strokers
Icehouse and
Strokers Ink.
On the
Web:
Anyone you’d like to
thank for the good
things you’ve got?
Tell us in the comments section at
www.dealernews.
com/deargrandma.
56
DEALERNEWS.COM
DEAR GRANDMA AND GRANDPA,
I hope y’all are doing good up there in Heaven. I
know you must be really enjoying it up there. I guess
that’s why they call it Heaven. I’m sorry it’s been so long
since my last letter.
We are doing pretty good here in Dallas. I am still
working long, hard hours, but I’m living my dream so I
guess that makes it OK. You remember you told me and
brother Randy a million times that the harder somebody
works, the luckier they get! I sure believe that now,
grandpa, and so does Randy. Ya know he’s a big-shot
attorney in Houston now with his own big law firm.
Randy and I recently went to Verona, Italy, for a
motorcycle show. It’s called the Motor Bike Expo and it’s
one of the largest bike shows in Europe. This show drew
over 120,000 people for a three-day event. Them Italians are very nice, but they don’t speak much English.
They gave us a couple of awful purdy girl translators,
but they weren’t much good at translating. Them Italian
boys did like taking pictures with those translators in
their skimpy clothes. And the food, I feel sorry for them
Italian cats, all they have to eat are noodles and skinny
pizza. I couldn’t find a chicken-fried steak anywhere in
that country. I think I lost a few pounds.
I still remember all them stories you used to tell me
and Randy about them old Indian motorcycles you used
to ride. Well, since Polaris bought Indian, they asked me
to be on the Indian Motorcycle design team. I am very
proud to be helping Polaris with their new Indian motorcycle. Polaris also owns Victory Motorcycles. Y’all know I
have always been a Harley guy, but these dang Victorys
are just flatout better motorcycles than Harleys. I ride
a Victory now and I’m proud to be a Victory dealer. I’m
already approved to be the Indian dealer here in Dallas. I think when I have Indian and Victory Motorcycles
on my floor, I’ll have the world by the gonads. (Sorry,
grandma.)
I’m now working with Allstate Insurance Company,
alongside Arlen Ness and Dave Perewitz to build three
bikes so they can take them on tour through 2012.
These bikes will go to a lot of the big motorcycle events
around the country. I can’t believe that I get to work
with my idols, Ness and Perewitz. These are two of the
biggest names and coolest cats in our industry. The
bike that me and my team built came out really swell.
I call this new bike Wilma. Y’all know I always like to
name my bikes after pretty women and I named this
M AY 2 0 1 2
one after Wilma Flintstone. She really was a pretty hot
gal (Grandpa, you know what I mean). Anyway, Wilma is
built on my Pam frame which has two 4-inch tubes that
make up the frame. One tube holds the gas and the
other tube holds the oil. Allstate wanted me to paint it
up Fairless-style — tie-dyed psychedelic. I’m pretty well
known for these paint jobs and my tie-dye shirt. Oh,
yeah, Grandpa, I still haven’t had a haircut yet.
Hey Grandma, I think the next bike I build I’m gonna
name it after you. I think your name, Golda, is a beautiful name and I’ll build a bike that you and Grandpa will
be proud of. I sure miss your home cooking, Grandma. I
would love to have your chicken fried steak, fried taters,
gravy and your homemade “cat head” biscuits again. I
miss the long summer days that we had with Randy and
cousin Deanna. I would pay every dime I have for one
more day with y’all. I’d turn the clock back and be 10
years old again, going fishin’ with Grandpa, Randy and
Deanna and come home to your home-cooked supper!
I miss y’all very much and I miss Sayre, Okla., too.
Everybody is doing good here in Dallas. My beautiful wife Sue is running my office and she does a swell
job. Remember when I brought her up to meet y’all
there in Sayre and you wouldn’t let us sleep in the same
bed because we weren’t married yet? Heck, that was in
the 70s, we were still teenagers. My daughter Lena is
now my marketing/PR manager and she’s really doing a
great job. She helps me with our charity work, too. I’m
big on supporting the Texas Scottish Rite Hospital and
we have raised over $100,000 for the children there. It’s
a great feeling to be able to help the Texas Scottish Rite
Hospital because they help so many children, and they
do it all from donations. They don’t charge the families
one red cent.
I think y’all would be proud of how your grandsons
Rickey and Randy turned out. We both work hard and I
know that we get that from you. Both of you worked so
hard all your lives and me and Randy are continuing in
your footsteps. We are very proud of our Fairless name
and thank you for instilling that in us. I hope that someday we will join y’all up there in heaven, but hopefully
not for a while. I still have a lot of work to do here. I feel
like there is something else in the motorcycle industry I
am supposed to accomplish, but I haven’t figured out
what it is yet.
Your loving grandson,
Rickey
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