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JANUARY 2013
VOL. 49. NO. 1 JANUARY 2013
DEALERNEWS.COM
V-TWIN AFTERMARKET • ADAMEC HARLEY-DAVIDSON • SADDLE SALES
V-TWIN REBORN?
CUSTOM BAGGERS, TOURERS,
BOLT-ONS TAKE SHAPE
HOT SEATS
SADDLE MARKET IS SIZZLING,
AND THE MARGINS ARE HIGH
AUCTION WARNING
ANOTHER COMPANY TO
WORRY ABOUT?
INTO THE
CURVE
ADAMEC H-D DOESNÕT FOLLOW
A STRAIGHT LINE
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ES169892_DN0113_cv1.pgs 12.19.2012 19:46
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For more information visit www.Dealernews.com/readerservice
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ES170118_DN0113_CV2_FP.pgs 12.19.2012 23:16
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ES170291_DN0113_001_FP.pgs 12.20.2012 02:28
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VOL. 49. NO. 1 January 2013
CONTENTS
f r om p a g e 2 0
The customer is No. 1. But you can never satisfy customers if
your employees are dissatisfed. You can’t expect dissatisfed
employees to satisfy customers.” –Mark Adamec
MANAGEMENT
PLUS
16
DEALER LAB
Despite a less-than-favorable
September, unit sales at
Destination Powersports
begin to strengthen again.
By Joe Delmont
COVER STORY: LEANING
INTO THE CURVE
Adamec Harley-Davidson stores
are built with the philosophy
that design infuences customeremployee relationships.
By Joe Delmont
FROM THE EDITOR
8
SPEED READ
47 ADVERTISER INDEX/
CUSTOMER SERVICE
SALES
MARKETING
28
34
32
36
IN THE HOT SEAT
The saddle market heats up, with
many product margins ranging
from 30 to 40 percent.
By Dennis Johnson
20
6
DEALERSHIP UNIVERSITY —
TORY HORNSBY
Time to get over the presidential
election, and turn your attention
to setting your own goals for
2013.
24
THE FUTURE OF V-TWIN
AFTERMARKET
This month’s roundtable includes
dealers, customizers and aftermarket pioneers.
Hosted by Dennis Johnson
48 TYE DYED TALES —
RICK FAIRLESS
Sugar Bear springers, old
scoots and purple paint:
these are a few of his
favorite things
DOMINION SCORECARD
Competition Accessories outperforms industry averages online,
but still has some work to do,
reveals new analysis.
DEALER EXPO MARKETING
SEMINARS
Organizing social efforts to
partial showroom renovations —
you will fnd it all next month in
Indianapolis (and it’s free!)
SERVICE
38
FUEL FOR THOUGHT —
DAVE KOSHOLLEK
MMI and HDU co-develop a
real-world training program for
technicians-to-be.
Follow us on Twitter:
Check out
www.twitter.com/
dealernews
for industry news
and updates.
On the cover
The brothers Adamec don’t walk a straight line at their
Harley-Davidson stores; in fact, their business philosophy is
rather curvy. Read what makes this Top 100 Dealer a Southeast power player. Photography by Edward Linsmier
2
Become a fan of
Dealernews on
Facebook @
www.facebook.com/
dealernewsfan
D E A L E R N E W S . C O M JANUARY 2013
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ES169916_DN0113_002.pgs 12.19.2012 19:47
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• All-new rubber compounds for remarkable wet grip, without compromising durability.
• Square bead wires improve casing rigidity, handling and ease of installation.
*Tests conducted by Texas Test Fleet in 2011 on public roads comparing MICHELIN Commander II, Metzeler ME880 and Dunlop D407/408
tires in sizes 130/80B17 and 180/65B16. Individual results may vary depending on motorcycle type and operating conditions.
BRINGING YOU THE BEST
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For more information visit www.Dealernews.com/readerservice
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ES170120_DN0113_003_FP.pgs 12.19.2012 23:16
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www.dealernews.com
EDITORIAL
Contact the editors at: [email protected]
Group Content Director
Associate Editor
Senior Editor-Aftermarket
Senior Editor-Business Services, Finance, OEM
Senior Editor-Technology, New Products
Senior Editor-Retail News, Legal/Regulatory
Contributing Editor/Editor-Dealer LAB
Columnist/Contributing Editor
Columnists
Group Art Director
Photographers
Top 100 Dealer Competition Coordinator
Audience Development Manager
MARY SLEPICKA
CYNTHIA FUREY
DENNIS JOHNSON
ARLO REDWINE
BRUCE STEEVER
HOLLY J. WAGNER
JOE DELMONT
MIKE VAUGHAN
ERIC ANDERSON, RICK FAIRLESS, TORY HORNSBY,
LARRY HUFFMAN, DAVE KOSHOLLEK, TRACY MARTIN, ROD STUCKEY
BETH DEMONT
JEFF BARGER, JOE BONNELLO, BRETT FLASHNICK,
BRANIMIR KVARTUC, EDWARD LINSMIER, GARY ROHMAN
JEANNE PALOMA
KRISTINA BILDEAUX
ADVERTISING
Contact Sales at [email protected]
National Sales Manager
Sales Coordinator
ANGELA GIBBS • 815-772-7871 • [email protected]
CHRISTINA ANDERS • [email protected]
For advertising sales information outside North America:
Hendrik Schellikes • [email protected] (Germany, Austria, Switzerland, Netherlands); Armando Maya • [email protected] (Spain);
Alastair Swift • [email protected] (UK, Denmark, Norway, Sweden, Finland); Monica Tomei • [email protected] (Italy);
Frances Wang • [email protected] (China); Sherman Ko • [email protected] (Taiwan);
Divya Guliana Khanna • [email protected] (India); Muhammad Ayyob • [email protected] (Pakistan)
Advertising Production Manager
JESSE SINGER • www.adsatadvanstar.com
Senior Production Manager
KAREN LENZEN
For information on subscriptions, permissions, reprints, list rentals and submitting press materials, see page 47
DEALERNEWS INTERNATIONAL POWERSPORTS DEALER EXPO
www.dealerexpo.com
PROGRESSIVE INTERNATIONAL MOTORCYCLE SHOWS
www.motorcycleshows.com
Executive Vice President
Vice President-Expositions
Brand Director - Dealer Expo, International Motorcycle Shows
Sales Director - Dealernews, International Motorcycle Shows
Sales Director - Dealer Expo
Marketing Director
DANNY PHILLIPS
TRACY HARRIS
TIGRA TSUJIKAWA
MIKE AUSEC
JIM MOORE
HEATHER ERICKSON
Advanstar Communications Inc. 2501 Colorado Blvd., Suite 280 • Santa Monica, CA 90404
310-857-7500 • 949-315-3759 fax • www.advanstar.com • GPS Coordinates: N 34 deg 1.8 min; W 118 deg 28.3386 min
Chief Executive Ofåcer: Joe Loggia • Chief Executive Ofåcer Fashion Group, Executive Vice-President: Tom Florio • Executive Vice-President, Chief
Administrative Ofåcer: Tom Ehardt • Executive Vice-President, Chief Marketing Ofåcer: Steve Sturm • Executive Vice-President, Healthcare, Dental & Market
Development: Georgiann DeCenzo • Executive Vice-President, Customer Development & President, Licensing International: Chris DeMoulin • Executive
Vice-President, Powersports: Danny Phillips • Executive Vice-President, Pharmaceutical/Science, CBI, and Veterinary: Ron Wall
• Vice-President, Media Operations: Francis Heid • Vice-President, Legal: Michael Bernstein • Vice-President,
Human Resources: Nancy Nugent • Vice-President, Electronic Information Technology: J Vaughn
4
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JANUARY 2013
ES169890_DN0113_004.pgs 12.19.2012 19:46
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HIRE A TRUE PROFESSIONAL
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For more information visit www.Dealernews.com/readerservice
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ES170117_DN0113_005_FP.pgs 12.19.2012 23:16
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FROM

THE EDITOR
Mary Slepicka
Finding inspiration
WHAT TO WRITE, WHAT TO WRITE, WHAT TO WRITE...
I’M SO SICK of writing.
It’s mid-December, we’re on deadline with this issue, and I’ve lost my muse. I’d rather be
out celebrating the season with friends, or enjoying what’s forecasted to be Chicago’s first
big snowfall, or heading over to a local dealership’s holiday open house. It seems like it’s
been a gazillion years since I’ve been on a motorcycle. Blah.
I imagine many of you feel the same. It was a tough slog to the finish in 2012 — yes, this
past year was better than 2011 or 2010 or 2009, but let’s face it: we’re tired.
I need to sign up for training — a webinar, an online tutorial or even the next meeting of
the Chicago Headline Club. I need to get out of my daily reality and reset my brain with a
mental wake-up call. So I’m going to do just that. And then I’m going snowmobiling.
Check out the seminars, workshops and panel discussions that are scheduled for the 2013
Dealer Expo, Feb. 15-17 in Indianapolis. The Dealernews Learning Experience is now the
largest FREE business education conference in the industry. All sessions are FREE with your
attendee registration (which is also, yes, FREE). Plus, for every Dealership University seminar
you attend, you’ll receive a Certificate of Completion (that’s FREE, too).
You’re going to get new information and a few new novel ideas at the 2013 Dealer Expo
(www.dealerexpo.com). You will have the opportunity to work directly with true industry and
business experts. You will “reset your brain” and return to your businesses re-energized, and
ready to take on 2013.
Happy New Year, everyone. Let’s start it off right. See you in February.
FRIDAY, February 15
Recruit, Hire, Train and Retain a Top-Notch Dealership Team (Presenter: Tony Gonzalez)
Using Conquest Marketing and Retention Advertising to Grow Market Share and Boost Repeat and
Referral Business (Presenter: Rod Stuckey)
Social Media: The Fine Line Between “Time
Vampire” and Effective Marketing (Presenter: Tory
Hornsby)
How to Boost Your Accessory and Clothing Sales
(Presenter: Jennifer Robison)
F&I: The Most Profitable Square Footage in Your
Dealership (Presenter: Jan Kelly)
Dealernews Workshop: The Five Biggest Threats to
and Revenue Opportunities for Your Service Department in 2013 (two-part “town hall” style session
hosted by Dave Koshollek)
What Does a High-Performance Dealership Look
Like? (Presenter: John Spader)
Advanced Google AdWords: Dominate Search
Engine Results (Presenter: Brad Cannon)
Selling to the Post-Recession Consumer: How to
Turn “Just Lookers” into Buyers (Presenter: Mark
Mooney)
Data Back Trends: The Difference Between Good
Dealers and Great Dealers (Presenter: Hal Ethington)
Integrated Marketing: Fishing with Multiple Poles in
the Water (Presenter: Eric Pedretti)
CRM and Internet Lead Management: Converting
Prospects into Buyers, and Maximizing Their Lifetime
Value (Presenter: Tad Kilgore)
Proven Tools and Tactics to Boost Profits and Increase Customer Retention (Presenter: Chris Langlois)
Dealernews SUPERSESSION
Rebuilding Retail: The State of the Dealer 2013 —
The New OEM-Dealer Relationship. Panel discussion
hosted by Eric Anderson
SATURDAY, February 16
Behind the Curtains of the Dealer LAB: Understand
the Power of Management by the Numbers (Presenter: Bill Shenk)
Proven Tools and Tactics to Boost Profits and
Increase Customer Retention (Presenter: Chris
Langlois)
Seven Habits of Highly Effective Dealers (Presenter:
Sam Dantzler)
Designing Your Store for the Future: A Simple Remodel for Significant Results (Presenter: Jim Rasmus)
F&I: The Most Profitable Square Footage in Your
Dealership (Presenter: Jan Kelly)
Identify the Hidden Profits Buried in Your Parts and
Accessories Department (Presenter: Mel Selway)
What Does a High-Performance Dealership Look
Like? (Presenter: John Spader)
Advanced Google AdWords: Dominate Search
Engine Results (Presenter: Brad Cannon)
Selling to the Post-Recession Consumer: How to
Turn “Just Lookers” into Buyers (Presenter: Mark
Mooney)
Dealernews SUPERSESSION
Rebuilding Retail: The State of the Dealer 2013
– Aftermarket Sales in the New Economy. Panel
discussion hosted by Eric Anderson
SUNDAY, February 17
Seven Habits of Highly Effective Dealers (Presenter:
Sam Dantzler)
Social Media: The Fine Line Between “Time
Vampire” and Effective Marketing (Presenter: Tory
Hornsby)
Identify the Hidden Profits Buried in Your Parts and
Accessories Department (Presenter: Mel Selway)
For more information visit www.Dealernews.com/readerservice
6
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JANUARY 2013
ES170504_DN0113_006.pgs 12.20.2012 17:33
ADV
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your dealership’s views.
For more information visit www.Dealernews.com/readerservice
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ES170143_DN0113_007_FP.pgs 12.19.2012 23:26
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SPEED READ
Speed Read gets you caught up on the top stories in powersports as reported on Dealernews.com.
Sign up to receive the DealerNEWS
ALERT e-newsletters for news delivered right to your inbox.
Announcing: The Top 100 Dealers of 2013
DEALER OF THE YEAR TO BE REVEALED FEB. 15 AT AWARDS GALA IN INDIANAPOLIS.
Dealernews on Dec. 20 announced the winners of the 22nd Annual Top 100 Dealer Awards, the industry’s largest, longest running and
most prestigious retail competition. The awards competition is presented by American Express OPEN.
The winners will convene Friday, Feb. 15 at an awards dinner gala in Indianapolis. The Awards Ceremony will reveal the 2013 Dealer
of the Year, the Merit Award winners and the recipient of the Don J. Brown Lifetime Achievement Award. Winners will be showcased in a
special gallery exhibit at the 2013 Dealer Expo, running Feb. 15-17 in Indy. Congratulations to the winning dealerships:
8
DEALERNEWS.COM
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First Coast Powersports (St. Augustine, Fla.)
Fort Myers Harley-Davidson
(Fort Myers, Fla.)
Fox Shawmut Hills (Grand Rapids, Mich.)
Freedom Cycles Inc. (Grandview, Mo.)
Frieze Harley-Davidson Sales Inc.
(O’Fallon, Ill.)
Fun Country Powersports Inc.
(The Dalles, Ore.)
Go AZ Motorcycles (Scottsdale, Ariz.)
Green Mountain Harley-Davidson
(Essex Junction, Vt.)
Harley-Davidson of Erie (Erie, Pa.)
Harley-Davidson of Scottsdale
(Scottsdale, Ariz.)
Honda of the Ozarks (Springfield, Mo.)
Hot Rod Harley-Davidson (Muskegon, Mich.)
House of Harley-Davidson (Milwaukee, Wis.)
Indian Victory Charlotte (Lowell, N.C.)
J&W Cycles Inc. (Washington, Mo.)
J&L Harley-Davidson (Sioux Falls, S.D.)
Kearney Powersports (Kearney, Neb.)
Killeen Power Sports (Killeen, Texas)
Liberty Cycle Center Inc. (Liberty, Mo.)
Mad River Harley-Davidson (Sandusky, Ohio)
Man O’War Harley-Davidson (Lexington, Ky.)
Maxim Honda (Allen, Texas)
McGrath Powersports (Cedar Rapids, Iowa)
McHenry Harley-Davidson (McHenry, Ill.)
Milwaukee Harley-Davidson
(Milwaukee, Wis.)
Motorcycle Mall (Belleville, N.J.)
Myers-Duren Harley-Davidson (Tulsa, Okla.)
North County’s House of Motorcycles
(Vista, Calif.)
Off-Road Express (Erie, Pa.)
Off-Road Express West (Waterford, Pa.)
Outer Banks Harley-Davidson
(Harbinger, N.C.)
Outpost Harley-Davidson (Pueblo, Colo.)
Performance Motorsports Yamaha
(San Juan Capistrano, Calif.)
Performance PowerSports LLC
(Seneca, S.C.)
Philadelphia Cycle Center (Philadelphia, Pa.)
Powersports East (Bear, Del.)
Rawhide Harley-Davidson (Olathe, Kan.)
Ray Price Inc. (Raleigh, N.C.)
Rec-Tech Power Products
(Lloydminster, AB, Canada)
Renegade Harley-Davidson (Alexandria, La.)
Rexburg Motorsports (Rexburg, Idaho)
Rick Roush Motor Sports (Medina, Ohio)
Ride Center USA (Hazard, Ky.)
Road Track and Trail LLC (Big Bend, Wis.)
Santa Fe Motor Sports (Santa Fe, N.M.)
Scooternerds / Select Cycle
(Greensboro, N.C.)
Seacoast Harley-Davidson
(North Hampton, N.H.)
Signature Harley-Davidson
(Perrysburg, Ohio)
Skip Fordyce Harley-Davidson Buell
(Riverside, Calif.)
Sky Powersports of Lake Wales
(Lake Wales, Fla.)
Smokin’ Harley-Davidson
(Winston-Salem, N.C.)
Smoky Mountain Harley-Davidson
(Maryville, Tenn.)
South Sound Honda-Suzuki
(Olympia, Wash.)
Star City Motor Sports Inc. (Lincoln, Neb.)
Steve Seltzer Powersports (Altoona, Pa.)
Team Winnebagoland (Oshkosh, Wis.)
Toledo Harley-Davidson (Toledo, Ohio)
UV Country Powersports (Alvin, Texas)
Vandervest Harley-Davidson
(Green Bay, Wis.)
Village Motorsports of Grand Rapids
(Grand Rapids, Mich.)
Wildcat Harley-Davidson (London, Ky.)
Wilkins Harley-Davidson (Barre, Vt.)
Woodstock Harley-Davidson
(Woodstock, Ill.)
Worth Harley-Davidson (Kansas City, Mo.)
Xtreme Machines LLC
(Millstone Township, N.J.)
2013
A.D. Farrow Co. Harley-Davidson
(Sunbury, Ohio)
Advantage Powersports (Kansas City, Mo.)
Adventure Motorcycle & Accessories LLC
(Weston, Ohio)
American Powersports (Findlay, Ohio)
Barney’s of Brandon (Brandon, Fla.)
Bayside Harley-Davidson (Portsmouth, Va.)
Beartooth Harley-Davidson/Buell
(Billings, Mont.)
Big St. Charles Motorsports
(St. Charles, Mo.)
Black Bear Harley-Davidson (Wytheville, Va.)
Black Wolf Harley-Davidson (Bristol, Va.)
Bob Weaver Motorsports & Marine Inc.
(North Tonawanda, N.Y.)
Boswell’s Ring of Fire Harley-Davidson
(Madison, Tenn.)
Bud’s Harley-Davidson (Evansville, Ind.)
Central Texas Harley-Davidson
(Round Rock, Texas)
Central Texas Powersports
(Georgetown, Texas)
Champion Motorsports (Roswell, N.M.)
Chaparral Motorsports
(San Bernardino, Calif.)
Charlie’s Harley-Davidson (Huntington, W.V.)
Cole Harley-Davidson (Bluefield, W.V.)
Coleman PowerSports (Woodbridge, Va.)
Competition Accessories (Springfield, Ohio)
Conrad’s Harley-Davidson (Shorewood, Ill.)
Cruisin’ 66 (Springfield, Mo.)
Cycle Center of Denton (Denton, Texas)
Cycles128! (Beverly, Mass.)
Cyclewise Inc. / Ducati Vermont
(New Haven, Vt.)
Del Amo Motorsports
(Redondo Beach, Calif.)
Deptford Honda Yamaha (Deptford, N.J.)
Dothan Powersports (Dothan, Ala.)
Downtown Harley-Davidson Renton
(Renton, Wash.)
Dreyer Honda South (Whiteland, Ind.)
Ducati Omaha (Omaha, Neb.)
Ducati/Triumph Newport Beach
(Costa Mesa, Calif.)
Fay Myers Motorcycle World
(Greenwood Village, Colo.)
Filer’s PowerSports (Macedon, N.Y.)
JANUARY 2013
ES171120_DN0113_008.pgs 12.21.2012 00:45
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For more information visit www.Dealernews.com/readerservice
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ES170121_DN0113_009_FP.pgs 12.19.2012 23:16
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SPEED READ
CycleTrader.com
TOP VIEWED BIKES (November 2012)
VEHICLE
Central Plains
%
31
Cruiser
Great Lakes Mid-Atlantic
%
32
Northeast
Pacific
Pacific Alaska Rocky Mountain
%
30
%
30
%
21
%
30
Southeast
Southwest
%
28
%
32
%
32
Dirtbike
6
5
9
5
11
12
11
9
5
Dual-sport
4
5
6
8
9
8
7
5
5
Motocross
3
2
3
1
7
3
3
2
2
Scooter
3
4
4
3
5
3
3
4
3
Sport touring
3
3
3
4
3
4
3
3
3
Sportbike
17
17
18
21
22
16
16
22
21
Standard
7
7
7
8
7
7
6
4
5
Touring
16
15
12
13
11
11
19
11
15
Trike
2
3
2
1
2
1
1
3
5
other
8
7
6
6
2
5
3
5
4
H-D (21%),
Honda (19%)
H-D (19%),
Honda (19%)
H-D (19%)
Yamaha (17%)
Honda (17%),
H-D (14%)
Honda (19%)
H-D (15%)
H-D (21%),
Yamaha (16%)
H-D (26%),
Honda %16%)
Honda (23%), Honda (19%),
Yamaha (17%) H-D (19%)
Increased interest Strong BMW
“Other” led by
Spike in
strong interest
sportbike,
in dirtbikes
region (12%)
in vintage
touring vs. Oct
vs. Oct.
Dirtbike MX
up vs. Oct
Notable rise
in cruisers
vs. Oct.
Strong Polaris
region (15%)
Sport category
increasing
Top Brands
Notes
Trikes
strongest
in U.S.
Consumer study of vehicles enthusiasts are viewing online at CycleTrader.com. Study conducted by Dominion Insights,
which collects data and reports to dealers and OEMs. Find out which specifc models received most consumer interest at
http://dominioninsights.com/dealernews
For more information visit www.Dealernews.com/readerservice
10
DEALERNEWS.COM
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JANUARY 2013
ES171123_DN0113_010.pgs 12.21.2012 00:45
ADV
NINA’S AN ORIGINAL.
And so is her Yuasa battery – the original equipment battery on
more motorcycles, snowmobiles, all-terrain vehicles and personal
watercraft than all other brands combined. To put the most
reliable powersports batteries on your shelves, contact us at
1-866-431-4784 or visit www.yuasabatteries.com
THE ORIGINAL EQUIPMENT BATTERY
For more information visit www.Dealernews.com/readerservice
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ES165551_DN0113_011_FP.pgs 12.10.2012 13:51
ADV
THE POWER IN
POWERSPORTS
ATTEND THE 45TH ANNUAL GATHERING OF THE ENTIRE POWERSPORTS INDUSTRY
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GO TO WWW.DEALEREXPO.COM NOW.
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THE BUSINESS OF POWERSPORTS.
ES170119_DN0113_012_FP.pgs 12.19.2012 23:16
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SPEED READ
WHAT’S TRENDING on
DEALERNEWS.COM:
ANOTHER AUCTION FIRM
DRAWING DEALERS’ WRATH
Same players, new company names?
Holly Wagner investigates complaints
against a new auction frm that may
have ties to another company targeted by the Better Business Bureau.
For more information visit www.Dealernews.com/readerservice
AUCTIONEER FIRES BACK AT
DEALERS
Smotherman says auction practices
are “way more shady” on their side.
POLARIS ACQUIRES SNOW, MOTO
GEAR COMPANY KLIM
Will set up new design center in
Idaho.
SAME CITY, NEW DATES:
DEALER EXPO IN 2014
Show switches to a September
timeframe in 2014.
TUCKER ROCKY NAMES SUCCESSOR TO STEVE JOHNSON
New president comes from auto
aftermarket and reportedly is an avid
motorcyclist.
SCORPION SPORTS GOES
DEALER-DIRECT
Helmet, gear company hires new
national sales manager for U.S.
For more information visit www.Dealernews.com/readerservice
ROSSMEYER HARLEY-DAVIDSON
CLOSING DEC. 31
Business will consolidate with sister
store in Sunrise, Fla.
CALMES SENTENCED IN MONEY
LAUNDERING CASE
Now-defunct dealer fned $500K, so
who’s going to pay?
ERIK BUELL RACING GETS
FINANCING FOR DEALER
NETWORK
EBR secures foorplanning through
GE Capital.
IS WHERE YOU CAN ORDER ARAI HELMETS.
TUCKER ROCKY DISTRIBUTING
800-347-1010
www.tuckerrocky.com
RIDE IN PEACE: J.R. KELLEY
Founder of KK Motorcycle Supply
passes away in early December.
FULL-BORE MARKETING
800-387-7625 (Canada)
www.fullboremarketing.ca
610-366-7220
J&D WALTER DISTRIBUTORS
800-833-3503
www.janddwalter.com
www.AraiAmericas.com
SAMMY TANNER DISTRIBUTING
800-Get-Arai
www.sammytanner.com
For more information visit www.Dealernews.com/readerservice
JANUARY 2013
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ES171121_DN0113_013.pgs 12.21.2012 00:45
13
ADV
SPEED READ
EMOTION.
TOP VIEWED
PRODUCTS on
Countless members of
the industry spoke of
their heartbreak and
outrage after the Dec.
14 school shootings in
Connecticut. 2012 Top
100 Dealer Rick Fairless of Strokers Dallas
took his message
streetside.
dealernews.com
New Biker Bar system
mounts motorcycles to
trailers without straps,
chocks or bolt-ons
Wimmer Cycle’s Super
Shield intake system,
designed for that oldschool look, has several
color combos and finishes
DragonFire’s new RZR
Cage Bracket Covers
custom that darned catch-y
area
It’s time to accelerate your dealership’s efficiencies.
%&"-&3."/"(&.&/54:45&.4t%&"-&38&#4*5&4t0/-*/&."3,&5*/(t-&"%."/"(&.&/5t*/%6453:*/5&--*(&/$&
FRIDAY
Show Daily
FEBRUARY 17, 2012
DEALERNEWS.COM
It’s time to accelerate your dealership’s efficiencies.
EXPECTATIONS MOUNT AS
ÔTHE BIG SHOWÕ OPENS
9 a.m.
2:00 p.m.
Opening Day Presentation: Kevin
Freiberg, “Innovate or Perish!” @
500 Ballroom
• Brand Forum Session: Kibblewhite Precision Machine (Room
130)
11 a.m.
• 20 Years of Customs Retrospective exhibit @ Cobra
Engineering (Booth 1716)
• Brand Forum Session: MMI
(Room 130)
11:45 a.m.
• Management Seminar: Managing the Service Department
with Mike Brunken (Room 134)
• Sales Seminar: Unique Selling
Proposition with Rod Stuckey
(Room 132)
• Service Seminar: 360-Degree
Service Selling with Dave
Koshollek (Room 131)
sion with a customer base that is
once again starting to buy more
product, particularly aftermarket
parts, gear and accessories. And if
recent market performance is any
indication, it stands to reason that
retail orders placed this weekend
could exceed last year’s estimated
tally of $145 million.
“The good news, as the industry
enters the prime spring selling
months, is that new motorcycle
sales overall were up slightly for
calendar year 2011,” says Kerry
Graeber, brand director for the
Dealer Expo and American V-Twin
Dealer Show. “And while we would
have certainly liked to see a bigger
increase, the fact that the industry
seems to be stabilizing is significant.
“Additionally,” Graeber adds,
“manufacturers are reporting that
January numbers were up, so we’re
optimistic about 2012.”
With new vehicle sales relatively
flat for the last three years, and with
more enthusiasts pinching pennies
Expo Open, continued on page 6
Industry veterans know the core rider population is aging, and that marketing to younger
consumers is essential to the health of the industry. But those same veterans often feel like
reaching that young, hip, mobile audience is like trying to nail Jell-O to the wall.
If industry statistics are any indication, the message is starting to trickle down to those
younger consumers. For the first time since 1980, the median age for motorcyclists has
dropped, from 43 to 40 years old, said Tim Buche, president and CEO of the Motorcycle
Industry Council.
Now more than ever, the medium – specifically social media — is the message, brand
Noon
• Brand Forum Session: 7 Media
Group (Room 130)
• Top 100 Dealer Awards
Luncheon (Invitation Only;
Wabash 2/3)
1:30 p.m.
• Management Seminar: Managing the P&A Department
with Steve Jones (Room 134)
• Marketing Seminar: Social Media and Mobile Marketing with
Brad Cannon (Room 133)
• Sales Seminar: Five Fundamentals of Sales with Tory
Hornsby (Room 132)
SATURDAY
Show Daily
FEBRUARY 18, 2012
2:30 p.m.
DEALERNEWS.COM
• Jody Perewitz Q&A and
Autograph Session (Builder’s
Stage)
3:00 p.m.
CITY CYCLE SALES NAMED
TOP 100 DEALER OF THE YEAR
• Dealernews LIVE! Thirty
Minutes with Buyers Under 30
(Learning Curve Stage)
3:15 p.m.
• Management Seminar:
Managing the Sales Depart-J&L
ment with Rod Stuckey (Room
134)
H-D, REXBURG, MILWAUKEE H-D ARE RUNNERS-UP
• Sales Seminar: E-Commerce
with Craig Cervenka (Room
133)
TodayÕs Agenda
EXHIBIT HALLS OPEN
9 a.m. to 6 p.m.
7:30 a.m.
• MIC Breakfast and Right Rider
Auction (Wabash 2/3 Ballrooms)
10:15 a.m.
• NPA Auction Seminar with Justyn
Amstutz (Room 130)
• Marketing Seminar: Psychology of Merchandising with Jim
Rasmus (Room 133)
• Service Seminar: Boosting Performance with Mike Brunken
(Room 131)
4:00 p.m.
2:30 p.m.
• Brand Forum Seminar: RidersEye
GPS System (Room 130)
• Dealernews LIVE! Thirty Minutes
with Buyers Under 30, hosted by
Jessica Prokup (Learning Curve
Stage)
• Service Seminar: 360-Degree Service Selling with Dave Koshollek
(Room 131)
• Dealernews LIVE! The New
V-Twin Rider with Victory
Motorcycles, Roaring Toyz and
Performance Machine (Learning Curve Stage)
11:30 a.m.
• Special Session: How Great
Leaders Think, with Dave Mitchell
(Learning Curve Stage)
Noon
• Brand Forum Seminar:
Auction123.com (Room 130)
5:15 p.m.
Award sponsored by the Progressive International Motorcycle
Shows. More than 30,000 votes
were cast on the motorcycle shows’
website during November and December for the Texas dealership.
Roughly 280 dealers and industry
VIPs attended the Awards Luncheon, hosted by Robert Pandya
and Larry Huffman.
The 10 highest scoring dealerships in the 2012 competition were
Adamec Harley-Davidson, Jacksonville, Fla.; Babbitts Sports Center,
Muskegon, Mich.; City Cycle Sales;
Cycle Center of Denton; Grand
Rapids Harley-Davidson in Michi-
The coveted Dealer of
the Year ring.
• Management Seminar: Your Best
Kept Secret with Sam Dantzler
(Room 134)
• Marketing Seminar: Multichannel Event Marketing with Eric
Pedretti (Room 133)
• Sales Seminar: E-Commerce with
Craig Cervenka (Room 132)
• Service Seminar: Boosting Performance with Mike Brunken (Room
131)
gan; J&L Harley-Davidson; Milwaukee Harley-Davidson; Ray Price Inc.,
Raleigh, N.C.; Rexburg Motorsports
and Steve Seltzer Honda.
TOP 100, continued on page 2
Freiberg: WeÕre ripe for revolution
KEVIN FREIBERG wasted no time giving dealers and manufacturers at the
opening session of the 2012 Dealer Expo and American V-Twin Show his
message: “Innovate or perish.”
Anyone accustomed to competing on price or product are in for a
rude awakening if they think they can keep doing business the same way
in the next decade as they have in the past. In fact, Freiberg predicted,
the industry is due for radical change, within the next two years.
“This industry is ripe for a revolution. Somebody is going to disrupt
• Service Seminar: Service Department 101 with Dave Koshollek
(Room 131)
• Marketing Seminar: Online Reputation Management with Rod
Stuckey (Room 133)
• Sales Seminar: Five Fundamentals
with Tory Hornsby (Room 132)
• Dealernews LIVE! Passion to
Profit with Bob Kay (Learning
Curve Stage)
• Sales Seminar: Maximize Sales
Through CRM with Sam Dantzler
(Room 132)
• Management Seminar: Managing
the Sales Department with Sam
Dantzler (Room 134)
5:00 p.m.
• Join National Cycle as it
celebrates its 75th year in busiCITY CYCLE SALES, a Harley-based
ness with an anniversary toast
• Service Seminar: Service
(Booth 5501)
multiline dealer from Junction
Department 101 with Dave
City, Kansas, was named the 2012
Koshollek (Room 131)
Top 100 Dealer of the Year during
awards ceremonies held Friday at
the Indiana Convention Center.
consultants told an audience at the MIC’s annual meeting, held Thursday on the eve of Dealer
J & L Harley-Davidson of Sioux
Expo and the American V-Twin Dealer Show.
Falls, S.D., was named first runnerThe future of the industry depends on engaging Millennials — the 21- to 35-year-old age
up; followed by Rexburg Motorsgroup — today, through channels that they have selected. Increasingly that means through
ports in Idaho as second runner-up.
social media services such as Facebook and Twitter.
Milwaukee Harley-Davidson was
The MIC’s Discover Today’s Motorcycling is rolling out a website (www.motorcycles.org)
named third-runner-up.
redesign aimed at those younger, aspirational consumers who may not have started riding
yet, in the hope of capturing an entirely new audience that will become the core market of Honorable mentions went to
MIC, continued on Steve
page 2 Seltzer Honda of Altoona,
Pa., and Cycle Center of Denton in
Texas. Cycle Center of Denton also
won the 2012 Consumers’ Choice
MIC tries to demystify the Millennials
THE GOOD NEWS: GEN-Y CONSUMERS FAVOR EXPERIENCES
OVER PRODUCTS, ACCORDING TO RESEARCHERS
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EXHIBIT HALLS OPEN
10 a.m. to 6 p.m.
Will buyer orders top $150 million?
The energy in the Indiana Convention Center is the highest in recent
memory as the Dealer Expo and
American V-Twin Dealer Show
launch their three-day run in Indianapolis.
More than 700 exhibitors, literally
thousands of new product introductions and a crowd estimated to
approach 20,000 are making today,
Saturday and Sunday once again
the biggest weekend in the powersports industry.
Dealers are shaking off the reces-
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TodayÕs Agenda
• Marketing Seminar: Multichannel Event Marketing with
Eric Pedretti (Room 133)
BEARTek riding gloves
feature Bluetooth audio
controllers
Your Daily
News Feed for
Dealer Expo
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1:00 p.m.
• Brand Forum Seminar: eBay
Motors & Auction123.com
(Room 130)
1:45 p.m.
• Management Seminar: Managing the P&A Department with
Steve Jones (Room 134)
• Marketing Seminar: Social Media
and Mobile Marketing with Brad
Cannon (Room 133)
3:00 p.m.
• Dealernews LIVE! The LAB’s Bill
Shenk answers your questions
(Learning Curve Stage)
• Brand Forum Seminar: Avitus
Group (Room 130)
3:30 p.m.
• NPA Mock Auction (Auction
Area, Exhibit Hall)
• Management Seminar: Managing the Service Department with
Mike Brunken (Room 134)
Dealernews INDY 2013
Show Dailies
• Marketing Seminar: Psychology of Merchandising with Jim
Rasmus (Room 133)
• Sales Seminar: Unique Selling
Proposition with Rod Stuckey
(Room 132)
• Service Seminar: How to Boost
Your CSI with Tory Hornsby
(Room 131)
4:00 p.m.
• NPA LIVE AUCTION of 150
Harley-Davidson and metric bikes
(Auction Area, Exhibit Hall)
7:00 p.m.
• ANNUAL INDUSTRY PARTY
featuring Charlie Brechtel Band
(Lucas Oil Stadium)
Autograph schedules:
See page 1.
this space. Why can’t it be you?” he challenged the audience. “Somebody
somewhere is building a product or a service model that is designed to
kick your butt. If it’s you, then you get to choose the rules of the game. If
it’s not, then you have to play by the rules that somebody else makes.”
Radical change was the theme for the morning as Freiberg offered
multiple examples of businesses reaping the benefits of taking risks.
Auto dealer Planet Honda, for example, gives customers plenty of
elbow room to shop without the pressure of the hard sell: “They slap a
DealerNEWS ALERT:
Live from Indy e-newsletters
Keynote, continued on page 6
14
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c
en ion um
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c
t
nfi pec do
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ith al In s a
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u
B ch s,
k
e
M hec
c
ed
e
t
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Gu
ALL THE CONFIDENCE
YOU NEED
TO GET YOUR MOTOR
RUNNING.
manheimspecialtyauctions.com/motorcycle-powersports | 866 • Manheim
©2013 Manheim, Inc. All rights reserved. Manheim, Buy. Sell. Win. and the M logo are trademarks of Manheim, Inc.
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ES170134_DN0113_015_FP.pgs 12.19.2012 23:17
ADV
Destination Powersports rebounds
in October with $20k increase
AFTER A ‘VERY BAD’ SEPTEMBER, UNIT SALES START TO STRENGTHEN
BY JOE DELMONT
EDITOR’S NOTE: The Dealer LAB project is a joint effort between Dealernews and PowerHouse Dealer Services, a consulting frm run by Bill Shenk,
detailing his efforts to return a Florida powersports dealership, renamed Destination Powersports, to proftability. The fnancial 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 fnancial report. In preparing these Dealer LAB reports, Dealernews reviews the
dealership’s unaudited P&L statement and Balance Sheet and its Composite Report.
OCTOBER performance for the Dealer LAB
dealership, Destination Powersports in
Punta Gorda, Fla., rebounded from a bad
September and increased almost $20,000
over the previous month. However, Net Income was still off when compared to October
2011, by about $3,600.
For the month, Net Income was $8,995
on total revenues of $447,264, down from a
Net Income of $12,606 on total revenues of
$391,486 in October 2011.
Net Income for the frst 10 months of 2012
was $124,688, down almost $40,000, or 24
percent, for the same period in 2011. Total
revenues through October 2012 were $4.7
million, up 14.6 percent from $4.1 million
through October 2011.
Unit sales for the month were down compared to October 2011: 34 versus 40. But
unit sales Year-to-Date continued ahead of
last year: 474 versus 383. The big difference
in October was used motorcycle sales, which
were off fve units from last year — 11 units
compared to 16 units.
The good news is that unit gross proft was
up from $34,277 in October 2011 to $51,665
this year. At the same time, F&I income also
increased from $12,472 to $14,002.
“Motorcycle sales continue to be strong,”
Shenk says. “For the brands we sell, new and
used sold in our market area was 14. We sold
12 of those, and we sold 18 total in Florida,
plus another six to out-of-state addresses
(snow birds who have homes in Florida) for a
total of 24 vs. 14 — well over the 100 percent
of market area target.”
New and used unit sales were fat compared to September at 34 units.
Revenue in Accessories and Service
continued to be soft in October, but early
indications were that they were picking up in
November. “As of the middle of November,”
Shenk says, “Parts and Service are back on
track … above Top Gun and on payroll budget.” He also added another capable Parts
employee at the end of November.
Sales revenue for October was up by 16
percent, climbing from $293,656 in October
2011 to $340,680 this year. F&I revenue was
up about $1,500, and Parts revenue almost
CONTRIBUTION TO OCTOBER PROFIT
$12,000
doubled that of October 2011, climbing from
$21,344 to $40,622.
Accessories revenue was off a bit, however,
dropping from $35,674 to $30,844, and
Service revenue skidded from $28,340 to
$21,116.
Even with the Cost of Sales up almost
$50,000, increasing from $297,070 to
$347,863, Gross Proft for the month increased about $5,000: $94,416 to $99,401.
At the same time, Total Expenses were up
sharply when compared to October 2011:
$80,913 vs. $96,709, or 19.5 percent. The
big differences here were payroll for the
Sales Manager ($4,130 increased to $11,579)
and Flooring ($2,718 increased to $11,273).
Payroll increases were caused by management changes.
Though new and used inventory is up only
7.5 percent, fooring expenses went from
$2,718 last October to $11,273 this October
because of decreased OEM assistance. That
meant an $8,555 hit to net proft. Last year’s
programs would have almost doubled the
store net proft.
ROLLING EARNINGS
Month
12 Months
$250,000
$10,000
$8,000
$200,000
$6,000
$11,246
$4,000
$150,000
$3,595
$2,000
0
–$2,000
–$2,092
$50,000
–$7,486
–$4,000
–$6,000
$100,000
0
–$19,744
–$8,000
Sales
F&I
PG&A
SVC
–$50,000 Nov Dec Jan Feb Mar Apr May Jun July Aug Sept Oct
The Dealer Lab is a real-world service from
16
DEALERNEWS.COM
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ES170073_DN0113_016.pgs 12.19.2012 22:31
ADV
Month-Over-Month Comparisons and YTD Totals: October 2012
SALES
Units Sold (New & Used)
Sales
F&I (net)
Parts
Accessories
Service
Total Sales
Total Cost of Sales
Gross Proft
% of Total
Dollars
% of Total Dollars
Oct-12
34
340,680
14,002
40,622
30,844
21,116
447,264
347,863
99,401
EXPENSES
Dealer
Top Gun
76.2
3.1
9.1
6.9
4.7
100*
77.8
22.2
73
3
8
8
8
100*
73.0
27.0
Oct-11
40
293,656
12,472
21,344
35,674
28,340
391,486
297,070
94,416
Dealer
32.9
64.4
65.5
17.2
Top Gun
37
55
57
19
Oct-11
15,668
7,536
14,694
2,718
7,648
3,357
13,665
13,606
1,921
96,709
0
7.7
3.4
13.7
13.7
1.9
97.3
0
8
3
20
6
12
107
0
6,212
5,121
14,372
12,614
1,978
80,913
6,303
8,995
8,995
1
2
2
2
1
0.7
YTD 2012
474
3,715,962
172,485
273,305
292,952
235,008
4,689,712
3,600,892
1,088,820
Dealer
33.5
37.1
52.0
5.8
Oct-12
17,052
10,652
13,628
15,397
YTD 2011
184,662
75,569
187,031
27,146
YTD 2012
226,949
79,330
150,614
87,604
6.6
5.4
15.2
13.4
2.1
85.7
6,947
4,040
17,128
19,507
1,961
106,312
0
65,923
56,837
164,018
131,222
20,847
913,255
71,521
33,939
165,903
140,092
20,763
976,715
0
-897
12,606
12,606
0
3.2
3.2
9,520
-10,843
-10,843
-4,446
164,359
164,359
12,583
124,688
124,688
PVS
DLR
7,840
364
577
618
496
9,894
7,597
2,297
79.2
3.7
5.8
6.2
5
100*
76.8
23.2
% of Dept Gross Proft
PVS
479
167
318
185
DLR
33.1
45.3
64.1
12.8
% of Dept Gross Proft
% of Total
Dollars
% of Total Dollars
Additional Income
Net Proft
Net Proft + Misc Exp
YTD 2011
383
3,005,168
147,782
249,514
335,760
345,946
4,084,170
3,002,110
1,082,060
% of Dept
Gross Proft
% of Dept. Gross Proft
Admin Payroll
Advertising
Administration
Rent
Co. insurance
Total Expense
Misc. Expense
75
3.2
5.5
9.1
7.2
100*
75.9
24.1
% of Total Dollars
Oct-12
34
223,229
15,654
28,579
24,370
18,043
309,875
223,926
85,949
% of Dept
Gross Proft
% of Dept. Gross Proft
Oct-12
Total Sales (5.25/4.0 Empl) 21,619
Total P&A (2.20/2.5 Empl)
9,783
Total Service 4.50/5.00 Empl) 13,837
Flooring
11,273
Dealer
151
72
350
296
44
2,061
0
6.6
3.1
15.2
12.9
1.9
89.7
0
% of Total Dollars
27
263
263
3
2.7
2.7
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.
The fooring problem, Shenk says, is diffcult to fx in a small seven-line store, with a
few of the OEMs requiring overstock — even
based on the OEM’s market share — to
qualify for programs. “The real potential run-
“BRP penalizes its customers if the
dealership doesn’t follow certain operating guidelines, such as attending its dealer
convention on the dealership’s dime, or
ordering the amount of parts or units in the
“Motorcycle sales continue to be strong. For the brands we
sell, new and used sold in our market area was 14. We sold
12 of those and we sold 18 total in Florida, plus another six to
out-of-state addresses for a total of 24 vs. 14 — well over the
100 percent of market-area target.” — Bill Shenk
ning clean number there would be maybe 20
percent less inventory, and that means less
than $1,000 per month fooring.”
BIG OPPORTUNITY IN P&A
The dealership performed $80,979 in P&A
transactions in October vs. $68,731 last October, up $12,248, or 18 percent.
The P&A gross proft dropped dramatically
from 30 percent of sales to only 19 percent.
That problem was due to warranty parts
through Service.
single preseason order they require,” Shenk
says. “One of our employees didn’t pass the
BRP product test on time, which meant we
received less than our net cost on all parts
used through service warranty. Between BRP
and Polaris we lost close to $5,000 in revenue,
plus we had the cost of the labor. The bulk
was Bombardier.”
P&A compared to foor customers offers
additional opportunity as well. “Our threemonth average on customer transactions is
374 vs. 445,” Shenk says. “That’s three per
day fewer than last year. At the same time,
our average ticket sold is off about $10. Between the two, it’s another $1,700 to the bottom line we missed. The biggest reason for
the decline is that the new team that does not
have the necessary phone skills to engage
the marginal phone inquiry and get those
extra three customers in the store each day.”
LOST INCOME
Considering these items, the available
revenue that could have dropped to the
dealership’s bottom line in October was
$21,288, which breaks down to the following:
a fooring increase of $8,555; P&A, $10,510,
and Service, $2,223. “That puts the increase
in net potential at the current customer level
at $13,733,” Shenk says. “We have work to
do, but we’re tracking.”
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. If you are interested in
joining a PHD 20 Group, contact Shenk at 877-PHD-0911 or
[email protected].
Read past reports and post comments at:
www.dealernews.com/dealerlab
JANUARY 2013
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ES170074_DN0113_017.pgs 12.19.2012 22:31
17
ADV
advertorial
INDUSTRY DATA
Nov 2012
Product Mix by Units Sold
Nov 2011
What type of units are selling better, or
possibly worse, this year versus last year? This
chart shows shifts in market share earned by
the six major segments of Powersports unit
sales. Change in share is expressed as a gain
or loss when compared to unit sales in the
same month as last year.
On-Road
UTV
ATV
Segment
Nov 2011
Nov 2012
Diff
On-Road
23.8 %
24.9 %
1.1 %
ATV
38.7 %
37.2 %
-1.5 %
UTV
20.4 %
21.9 %
1.5 %
Off-Road
11.5 %
10.2 %
-1.2 %
Dual
2.7 %
2.9 %
0.2 %
Scooter
2.9 %
2.9 %
0.0 %
Nov 2012
Product Mix by Sales Dollars
Nov 2011
UTV
On-Road
$
ATV
What type of units are generating more or
less cash than last year? This chart shows
shifts in market share earned by the six major
segments of Powersports sales measured in
dollars. Change in share is expressed as a
percentage gain or loss when compared to
dollar sales in the same month as last year.
Segment
On-Road
Nov 2011
38.2 %
Nov 2012
39.0 %
Diff
0.8 %
ATV
25.8 %
23.1 %
-2.7 %
UTV
26.7 %
29.3 %
2.7 %
Off-Road
5.5 %
4.8 %
-0.7 %
Dual
2.7 %
2.6 %
-0.1 %
Scooter
1.1 %
1.1 %
0.0 %
Reports provided by ADP Lightspeed’s Data Services team. All reports
are a sample of North American dealers using the LightspeedNXT DMS.
For further information please contact Dave Johnson at 800.521.0309.
Also visit adplightspeed.com for more reports.
advertorial
© ADP Lightspeed Inc. All rights reserved. The ADP Lightspeed logo is a trademark of ADP Lightspeed Inc. The ADP logo is a registered trademark of ADP, Inc.
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ES167950_DN0113_018.pgs 12.13.2012 23:01
ADV
Ready, Set, Grow
800.521.0309 | adplightspeed.com
Lightspeed’s Databack report let’s you see what areas of your
dealership are strong and which ones need improvement.
Control all areas of your business with the industry leader in
Powersports Dealer Management Systems. See how you stack
up against competitors and then make the changes necessary to
dominate the market. Databack gives you the information needed to
drive higher profits. Get ready to grow. We can show you how.
Test drive the power of Databack.
Visit our website to request a free customized report.
www.adplightspeed.com/databackpromo
ADP Lightspeed, Inc. • 5184 Wiley Post Way • Salt Lake City, UT 84116 • adplightspeed.com • 800.521.0309
© ADP and Lightspeed logos are registered trademarks of ADP, Inc.
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For more information visit www.Dealernews.com/readerservice
ES170161_DN0113_019_FP.pgs 12.19.2012 23:41
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MANAGEMENT
LEANING INTO
THE CURVE
ADAMEC H-D STORES ARE BUILT, DESIGNED AND OPERATED AROUND RELATIONSHIPS
by Joe Delmont • photos by Edward Linsmier
MARK ADAMEC IS A STRAIGHT-SHOOTER and a straighttalker, but he doesn’t like straight lines in his buildings or in his designs. In fact, he thinks straight lines, at least on ground level, interrupt
personal communications. Curves, he says, facilitate communication.
One reason he talks so much about curves is that he believes they
tie back to and support the key to his dealership’s business success:
personal relationships — among employees, and between employees
and customers.
The idea of curves epitomizes Adamec’s ingredients for success.
“When we began this direction about five years ago,” he says, “we
developed a pattern: Using Quality Business Practices [QBP], we will
grow our Employee Satisfaction Index [ESI], which will create a better
CSI [Consumer Satisfaction Index]. We see it as a continuous process
improvement circle: Evaluate and improve our QBP, thereby improving our ESI, and the improved CSI follows.”
But let’s return to the curves.
If you take one look at his Harley-Davidson dealership on Baymeadows Road in Jacksonville, Fla., you’ll see lots of curves, from desks to
architectural touches in the building itself.
“Curves are more friendly than straight lines and corners,” Adamec
says. “Curves provide more of a flow pattern, and a corner represents
an obstacle. If you have to work around something, it’s easier if it’s a
curve than if it’s a square.”
Even desks and tables have round designs, representing Adamec’s
approach to personal relationships. “If two people are at a desk,” he
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says, “it’s better to have a round table than a square one. It represents
a friendlier atmosphere.”
Adamec’s not the only one hung up on industrial designs emphasizing curves. Steve Jobs of Apple focused on curves. He loved using
round corners, as one designer noted, “for simplicity and elegance.”
Apple products, from its website to the iPhone and iPad, all feature
rounded corners.
“I didn’t know that; it’s good company to be in,” Adamec says.
It’s also expensive company. Adamec says it cost more to incorporate curves in the design of his dealerships, but he thinks it was
worth it in terms of attractiveness and increased comfort level for his
customers. And that leads to increased sales. The Baymeadows store
was redesigned and installed by Harley-Davidson at a cost exceeding
$120,000. “The way you build your building and the way you route
your floor traffic is important,” Adamec says. You can do your customer and yourself a great service with the proper design, he adds.
During the redesign, Adamec learned about lighting, and spent
extra on lights designed to show off the special paint on his Harley
machines. High-intensity track lighting is located precisely above each
of the six rows of bikes on the show floor to emphasize the full color
of the Harley paint jobs. “The lights bring out the features of the motorcycle like never before,” he notes. “Harley-Davidson has a unique
paint process that typically looks better when presented outside in
bright, natural sunlight. These lights allow us to show off the uniqueness of our paints while the bikes are still indoors.
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Above: Mark Adamec built his mini-empire on customer and employee relationships. Adamec HarleyDavidson’s showroom is based on the concept of
curves rather than straight lines and angles, which he
believes can interrupt personal communication.
January 2013
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ManageMent
“You can save big dollars if you cut back on lighting, but it’s one
of the most important things [in design]. I don’t want my store to be
too bright — like a Target or a Walmart — but there are some areas
that have to be highlighted, areas like service and the show foor,”
he adds.
Can a dealer recapture dollars spent on design? Here’s what Adamec told Dealernews Top 100 judges in his winning application one
year ago: “We completed the project in September 2010, and the
design and lighting impacted our motorcycle sales signifcantly. For
example, we had fve motorcycles from the previous model year that
all were of the same color and all were over 365 days old. All fve sold
within the frst week after we completed the project and had put the
units on display under the new lights.”
The Adamec business is the 10th oldest in the U.S. Harley-Davidson
network. Adamec today operates four Harley stores in the Jacksonville and St. Augustine areas on Florida’s northeastern coast.
The main store on Baymeadows Road is 65,000 sq. ft., including a
15,000 sq. ft. showroom and a 29,000 sq. ft service department. The
dealership sits on 4.5 acres just off of I-95, a main artery for Florida.
It opened in 2006.
The other stores are Adamec Harley-Davidson at Regency, a
18,000 sq. ft. facility opened in 1973, and Adamec Harley-Davidson
of Orange Park, a 20,000 sq. ft. unit that opened in 1998. The
Jacksonville stores are full-service Harley dealerships. A fourth store in
St. Augustine — the former Harley-Davidson of St. Augustine — is a
small (1,400 sq. ft.) alternate retail outlet that sells shirts and accessories. It’s in the main tourist walking area of the oldest city in the
United States.
EmPHAsis On Esi
You can have all the fancy lights and curvy designs and layouts in the
world, but successful businesses are based on people, and relationships among employees and between employees and customers, says
Adamec, a third-generation family owner.
While it’s common to talk about a dealership’s CSI, Adamec
emphasizes his ESI. “We started pushing that a number of years ago,
and it didn’t come easy, believe me. It goes against some things,” he
explains. “The customer is No 1. But you can never satisfy custom22
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ers if your employees are dissatisfed. You can’t expect dissatisfed
employees to satisfy customers. It goes way beyond employees. It’s
facilitating an environment in which employees can grow and operate.
That’s the basis for doing all the things we do.
“The charity things, the workshops — they’re all important, and
you want to do them,” he continues. “So it’s important that you have
the correct infrastructure of employees — people in the right places
where their gifts and talents can be developed to the fullest. Then
you can do these incredible events and incredible dealer rides and
all the events we do. At the same time we’re growing our employees
and developing our relationships, we tend to the day-to-day business
processes because it’s all part of our culture.”
Building employee culture begins with open communications,
which includes selected fnancial information, he notes. “We’re quite
open with that. We really share our numbers with all the people on a
need-to-know basis.”
If you’re in the parts department, for example, you get fnancial
information on the parts business. “They need to know exactly what
Community outreaCh is part
of the adameC dna
“We believe our effort to be perceived as a leader in our community is the bedrock of our reputation and image within the
community,” says adamec harley-davidson owner mark adamec. “motorcycle sales are a byproduct of that perception.”
But the dealership’s outreach program doesn’t always tie
back directly to sales. in fact, nearly every week the business
is involved in some event, promotion or charitable activity
that returns no direct economic beneft. take, for example, the
Light the City ride, which benefts three police charities. the
dealership raised more than $200,000 for these groups.
the dealership also won a Dealernews Customer service
award in 2012 for its harley owners Workshop (hoW), a
monthly feature where the chrome and performance consultant conducts workshops on motorcycle care, road safety and
bike customization. adamec credits the hoW program with
boosting its p&a sales by 19.5 percent and increasing service
revenue by 31.1 percent in 2011.
January 2013
ES169928_DN0113_022.pgs 12.19.2012 19:47
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Dealer Data
aDaMec harleY-DaviDson Jacksonville
8909 Baymeadows Road, Jacksonville, FL 32256 • 904-493-1931
E-mail: [email protected] • www.adamecharley.com
Owners: Mark Adamec, Chris Adamec
(pictured below left)
General manager: Joe Key
Employees: 65
Years in Business: 80 At Location: 6
store size (sq. ft.): 65,000
Annual Revenues: $20.9 million
Proft per sq.ft.: $4.25
Dms: LightspeedNXT
Hours of Operation:
Monday – Friday: 9 a.m. to 7 p.m.
Saturday: 9 a.m. to 6 p.m.
Sunday: 11 a.m. to 5 p.m.
sALEs DEPARTmEnT
manager: Eric Voce
F&i manager: Tony Terry
showroom size: 4,070 sq. ft.
advertising budget
PARTs DEPARTmEnT
manager: John Bennett
size: 2,700 sq. ft.
GEnERAL mERCHAnDisE
manager: Shelley Silver
size: 2,700 sq. ft.
sERViCE DEPARTmEnT
manager: Scott Adams
size: 12,400 sq. ft.
ECOmmERCE DEPARTmEnT
manager: Shelley Silver
Employee: Ariel Adamec
sales by department
27% Used Units
50% Radio
7% Service
5% Direct Mail
15% Parts &
Accessories
12% Internet
2% Yellow Pages
1% Newspapers
7% Clothing
1% Rentals
30% Television
43% New Units
CUsTOmER DEmOGRAPHiCs
Women: 12% men: 88% Over 40: 80% 18-39 yrs: 20% median age: 53
the expected goal for the month is [and] what’s expected of them,
which keeps team members focused on performance,” Adamec says.
“Now our people feel like they’re on the inside; they’re part of the
team, not just putting their head down and working.” Employees can
help improve the gross proft if they know what the gross proft is and
what it’s expected to be, he adds.
Such openness wasn’t easy; in fact, he resisted the idea for some
time. “I didn’t want to share fnancial information,” he recalls. “But
some years ago I made a decision: I needed to be more open about
everything. Especially as our company grew, the day of me trying to
do all of this by myself wouldn’t work anymore.”
So he took the next big step. “To do many things well, I was going
to have to have great people help me and to build a great team, I had
to share more. Part of that sharing is being vulnerable. But that is the
basis of trust — vulnerability on everyone’s part.”
One result is the dealership’s KUDOS program, which honors
employees for exceptional service. Employees can be nominated for a
KUDOS by customers or by other employees.
“It’s been an incredible program,” Adamec says, “because it keeps
the focus on everyone working together as a team, and recognizing
and appreciating that an employee can do things that really stand out.
It causes the level of service to improve because people try to outdo
each other by doing what’s right.”
Isn’t this just another version of Employee of the Month? Not really,
because all of the dealership’s 120 employees are eligible all of the
time to be rewarded and recognized — not just 12 people a year. “We
read the KUDOS weekly, and all the managers take the time to give
those employees a pat on the back for their efforts,” he says.
This in turn translates to improved customer service. In the Adamec
Customer Care Department, anyone — customer or employee — can
identify a problem and request a solution. The program is headed by
a director of customer relations who reports directly to the corporation’s vice president of operations and who has authority to make
changes. “If this person doesn’t have proper authority,” Adamec
notes, “they can’t properly identify the problem and can’t properly
work out a solution with another manager.”
The fve-year-old program succeeds because it stresses accountability. “The cool thing about this accountability factor, especially as it
relates to an individual department, is that it’s who we are. It’s not like
some artifcial rule book. It’s become part of our DNA.”
Adamec has an extensive customer follow-up program. He uses
Victory Solutions, an independent contractor based in Florida, to contact customers in addition to the calls made by staff. Adamec himself
also makes customer calls. “It’s incredible what a dealer principal can
do by staying involved on a communications level, especially once the
process is established,” he says.
January 2013
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M A N A G E M E N T — T H E D E A L E R N E W S I N D U S T R Y R O U N D TA B L E
The Future of the
V-Twin Aftermarket
CUSTOM BAGGERS, TOURERS AND BOLT-ON CUSTOMS TAKE SHAPE — AND THIS TIME,
IT’S ABOUT RIDING, NOT POSING
Hosted by Dennis Johnson
IT’S NOT YOUR FATHER’S V-TWIN BUSINESS. Actually, it’s not even your older brother’s.
Today is a shadow of the market monster that sucked in popular culture, customers, manufacturers, inventors and lots of dollars — all of which
it spit back out when the economy collapsed. But it’s still thriving, in a less bloated existence still peopled with the passionate riders, builders,
dealers and artists who built it.
To understand today’s V-twin market you need to reach a wide swath of those intimately involved, from back in the day to perhaps just this
year. This month’s roundtable (left to right) includes:
• Matt Flintrop, general manager of Milwaukee Harley-Davidson,
who has worked in Harley dealerships for 14 years
• Paul Yaffe, the man behind Paul Yaffe Originals, who made the
prescient decision to launch Bagger Nation — a business focused
on custom H-D touring models
• Dealernews columnist, premier trainer and industry consultant
Dave Koshollek
• Terry Rymer, co-owner and general manager of Black Hills
Harley-Davidson in Rapid City, S.D.
Dealernews: So here we are in 2013. How
has the market changed?
Baker: Small OEMs like Big Dog and
American IronHorse have died off. Scratchbuilt customs have declined a little but are
still strong among the faithful. Scumbags
that had no business in the V-twin market are
gone and are off selling Amway and contriving Ponzi schemes. Foreign markets like
Europe and Australia are much stronger.
Yaffe: Our industry was extremely fat
from overwhelming demand and popularity
of choppers and customs from a booming
economy and television exposure. When that
dried up, the flood of companies and builders that flocked to our industry hoping to get
a piece of our pie thinned out dramatically.
Koshollek: The best in the business are
still in business, and that’s good. There were
many in the market primarily for the money.
Some of them, actually a good number of
them, did not possess the professional skills
needed for the market to blossom. If there’s
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• Dealernews columnist Rick Fairless, who presides over the Strokers Dallas empire, including the new RF Custom Parts,
• Buzz Kanter, who launched Old Bike Journal in 1989 and currently publishes American Iron Magazine, Motorcycle Bagger and
RoadBike,
• AnddrivetrainguruBert Baker, who we prefer to tell his own
story: “Lisa and I started Baker Drivetrain in 1998 after we got
tired of eating poop sandwiches at General Motors. We have four
kids and managed to get two of them through college. Two down,
two to go.”
one good thing about the recession, it’s that
it got rid of a lot of dispassionate, self-centered individuals.
Dealernews: What about in retail?
Rymer: There has been a significant
swing toward touring or bagger models and
less attention toward choppers. Financing
(although loosening up some now) has been
a challenge for getting additional accessory
or customization funding.
Flintrop: The last few years have been
humbling to our industry. There is nothing
like an economic downturn to show you your
strengths and weaknesses. We were flying
high at the end of the 110th Anniversary in
2008, and about two weeks after the event
it was like you turned a faucet off and there
were no more customers. It was a real lesson
in budgeting, expense control and survival.
During all of that upheaval, you had to keep
people positive and mix reality with an
optimistic perspective to keep people going.
Having been through the worst of it, I know
that it has changed me and our business for
the better, and I feel that we have had experiences that give us a competitive advantage
against people who were not exposed to
them. In terms of competition, the downturn
seemed to hit the local aftermarket and metric dealerships exceptionally hard. We have
lost perhaps 75 percent of our competition.
Flintrop: The dealers that stayed in business and stayed healthy have started to
figure out that unit sales are not the measure
of a dealership, but profitability. It seems like
prices have started to level out, but there
are still some dealers with pricing that make
you wonder how they can stay in business.
Although I don’t advocate the $2,500 over
retail pricing strategies of 10 years ago, it
would be great to have dealers sell value
rather than price so that we can all end up
around retail on major units, parts and merchandise. They won’t pay us retail until we
have the confidence to ask for it.
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Dealernews: How is today’s V-twin customer different?
Kanter: Today’s riders do not have the
disposable income they might have had
five years ago, and this reflects in what they
buy and what style of motorcycle (stock or
custom) they ride.
Baker: Ten years ago there were a lot of
posers with high-dollar custom bikes. In the
last five years the posers have been replaced
by riders, which is a healthy thing for the Vtwin world and is exemplified by the fact that
10 years ago Daytona Bike Week was bigger
than Sturgis, but that has flip-flopped.
Yaffe: The passionate customers have
remained. Folks who love and live the motorcycle lifestyle still continue to celebrate it and
probably always will. The American OEMs
are doing a great job of keeping the new
models both exciting and innovative while at
the same time following the current trend of
having one bike that is both a badass custom
and able to travel cross-country efficiently.
Flintrop: I think that for some of our less
affluent customers the dream of buying a
Harley [has] moved out of their grasp for the
time being. I look forward to a time when
they can return in force.
Rymer: I think the customer thinks
about owning their motorcycle for a longer
period of time than in the past. I also think
they are looking for the most bang for the
buck more so than previous years. So they
are more price-conscious and have more
knowledge of the product than ever before
because of the Internet.
Flintrop: The customers have gotten a
little bolder. With supply exceeding the demand during the downturn, dealers lost the
confidence to ask for retail on even their most
popular bikes, and that has put the customer
in the driver’s seat. They are very value-minded. Internet sales have also changed the face
of the parts and Motorclothes departments.
Everyone, everywhere, now has competition.
Koshollek: I think the V-twin customer
continues to become better educated. They
know more about the products that they have
interest in. On the demographic side, customers in their retirement years are moving
either to trikes or out of the market altogether. Their physical abilities do not enable them
to safely and confidently control a big bike.
Dealernews: Who’s going to fill the void
left by the aging baby boomer customer
base?
Koshollek: Females, Hispanic and AfricanAmerican V-twin riders are growing in num-
bers. Harley-Davidson is doing a great job of
reaching out to these groups, and everyone
in the V-twin market will benefit. Twentysomething riders are attracted to strippeddown bikes with a radical style — similar to
what I was attracted to when I started riding.
This group likes to do more of the work themselves, primarily because it’s cheaper.
Flintrop: We are back-filling with younger
riders and women. Many of the younger
riders are focused around the Dark Custom
motorcycles. A surprising amount of them
are picking Street Glides and Road Glides as
their first bikes rather than Sportsters, Softails
and Dynas — much nicer bikes than the 72
XLCH that I started out on.
Baker: Baby boomers are not done yet.
They are riding well into their mid-70s. They
may not ride as much as they used to, but
they still have dreams and the money to make
those dreams come true. I know 80-year-old
guys who have a lot of bikes but don’t ride
much. They are still customers, and their purchases feed the flame.
Rymer: Year after year we see “empty
nest” couples getting back into the sport of
motorcycling. I also can see, by the thousands of tourists we accommodate each
riding season who are traveling through to
the western states, that motorcycle touring is
on the upswing. I think this helps to generate more riding, which in itself promotes and
brings others to the market. We also have
an Air Force base in the area that employs
younger men and women who also start
riding when they are stationed here or are
already riding metric bikes. Once they have
been here awhile, they come out to our dealership and we develop a relationship with
them through our events.
Dealernews: What are you doing to reach
the next generation of customers?
Baker: Not enough — we don’t have
a marketing budget to significantly influence that market. Harley has the biggest ad
budget and we all benefit from it. There’s also
some cool-kid players like Roland Sands who
effectively reach the younger audience with
his youthful/edgy/progressive image, and we
all benefit from that, too.
Flintrop: Our dealership employees are
rather young, from Chaz [Hastings] our owner,
and on through the ranks. When considering
ideas for upcoming events and marketing we
think of what we would like to do if we were
the customer, and follow our instincts. For this
reason our marketing message is younger
and hipper than our competition. The mes-
sage is all about having fun and the motorcycle lifestyle. We are the dealership known
for big parties, lots of excitement, over-thetop entertainment, and a PG-13 atmosphere.
Due to these efforts, our customers skew 10
to 15 years younger than our neighboring
dealerships.
Rymer: There again, through the marketing efforts of The Motor Co. with either the
Dark Custom line or the new Hard Candy
Customs, along with the non-stereotypical
campaign, we reach out to a more youthful
customer. We host motorcycle boot camps
to attract and embrace a younger-generation
rider. We have also hired a full-time social
media marketing person who is 25 years old,
[has] ridden most of his life and has a degree
in marketing.
Dealernews: What parts of the dealer’s
business are more important now than they
were, say, two to five years ago?
Rymer: I am realizing more than ever
that today’s customer relies on us heavily for
service after the sale — not only in the most
important area, our service department, but
from the entire store. By this I mean communicating properly when their bike needs
service, and what it needs from us to help the
customer have the best experience they can
from their investment. That means parts and
accessories, as well as general merchandise,
suggesting products or services that make it
easier and more fun to ride.
Flintrop: We have had a huge push to
increase sales in our fixed operations. Beyond
an increase in revenue, we see service as
the area in the dealership that is the most
capable of creating customers for life. Service
has the most tools to help exceed customer
expectations — warranty, extended warranty,
diagnostic capabilities and, most importantly,
a seasoned staff that has valuable information. Through the labor of experienced techs
and advisers we can provide intrinsic value
that turns motorcycles, which are commodities, into something more.
Dealernews: Has the growth in touring
changed your business?
Baker: The touring bike trend has made
the 5-speed transmission obsolete, and that
has been very, very good for our business.
Flintrop: Our local market is driven by
touring sales. They are perhaps 65 percent of
what we sell. They are in such demand that
they are sold before we receive them. It reminds me of the demand we had for Softails
10 years ago. Just as that trend passed, this
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M A N A G E M E N T — T H E D E A L E R N E W S I N D U S T R Y R O U N D TA B L E
TRENDS TO WATCH
Matt Flintrop:
“Everything for
baggers”
Paul Yaffe:
“Everything for
tourers”
Dave Koshollek:
“Functionality
is key”
Buzz Kanter:
“Function over
fashion”
Big audio systems
Big front wheels
with neck rake
modifications
High (10-14 inch)
handlebars
Deep saddlebags
Anything powdercoated black
Pod lights
Radical handlebars
Big wheels
Stretched body
components
Audio upgrades
Exhausts with
stylized end caps
Baggers
Performance
enhancements
Sound systems
Wheels
Electronics and
communications
More riders, fewer
posers
Real performance
vs. just adding more
noise
Rat bikes and homebuilt customs
Maximizing value
for time and money
spent
one will, too, and we need to be watchful of
what is coming next.
Rymer: Obviously we have had to adjust
our new motorcycle inventory, but it has led
to a real shift in parts and accessory inventory as well. It has also led to physical space
challenges in our dealership because they
are bigger and wider. Throw trikes in there
and we have had to take a hard look at our
facility going into the future, and are making
plans to add square footage in not only the
showroom but service as well.
Dealernews: Let’s talk trikes. Are they really catching on?
Rymer: It has been a great market segment for us and will continue to grow.
Baker: Most customers I know with trikes
have stacks of cash, so that is a good thing.
Baker reverse systems are selling well to the
two- and three-wheeled people.
Flintrop: Trikes have really caught on,
but the buyer demographics are very onedimensional. The typical trike customer is
generally an experienced rider who feels he
can no longer safely operate a motorcycle. I
would have expected that we would see less
experienced riders using them as a gateway
into the sport, but that hasn’t happened. This
year we are considering adding a trike to the
rental fleet in an effort to see if familiarity and
a positive experience will increase sales.
Fairless: Everybody digs looking at them,
but trying to get them to put their money on
one, it’s tough.
Yaffe: Tom Motzko from Drag Specialties
talked me into customizing a trike. We both
thought that the three-wheeled segment
was up-and-coming. I purchased a new 2010
FLHXXX and created about a dozen products
for it while customizing it. When the bike
was complete it received rave reviews and
everybody loved it. We have added the parts
to our product line, but they really haven’t
moved much. I think we were a bit ahead on
that move. We also created a pretty radical
26
DEALERNEWS.COM
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Burt Baker:
“Old School”
Scratch-built or
modified Harleys
Extreme customized
baggers
Performance
powertrains
Shiny chrome
thingies that new
riders buy
Grassroots sub-OEM
bike builders
trike for a market segment that is perhaps still
conservative. Maybe I should have focused
on a cool cup holder rather than big wheels
and sleek body?
Dealernews: Where do you see the V-twin
aftermarket trending in the short term?
Baker: Mike Corbin said that choppers/
bobbers have come and gone over the last
50 years and will continue to do so. The
popularity of choppers has coincided nicely
with economic peaks, and then they die.
Choppers will be back in seven years. Sorry
to be bearer of bad news.
Yaffe: Touring segment will stay hot. We
are expanding the look into Softail formats
for 2013 and we’ll see where it goes.
Kanter: More low cost bolt-ons that look
good and work. Fewer sales of higher ticket
items. More product focus on keeping a
motorcycle on the road.
Flintrop: The Motor Co. has done a great
job of creating accessories and following
trends that they see in the aftermarket. For
this reason, aftermarket parts styling will have
to run to stay ahead. The biggest change
for the aftermarket seems to be transitioning
from being positioned as a low-cost alternative to factory parts to being a source of truly
bolt-on custom parts. You can transform the
look of your bike completely by bolting on
deep bags, extended fenders and stretched
tanks without ever picking up a TIG welder
or grinder. [It is] a trend that has put a one-off
mild custom within the reach of the average
customer, one piece at a time.
Dealernews: So is the ground-up custom
market dead?
Baker: Hell, no. Our nostalgic 4-speed
and our 6-into-4 transmission are top-sellers
for us. From this, I know the old-school bike
builds are popping.
Rymer: I hope it’s not dead anytime soon.
After all, it helps create and drive the OEM’s
platform.
Visit our expanded
V-Twin Roundtable on
www.dealernews.com, where
Matt Flintrop discusses the
dearth in skilled employees,
Dave Koshollek lists the three
biggest threats to the industry,
and just about everyone has an
opinion on Indian and Victory.
Yaffe: Not dead, just in transition. “Transvestbike” companies like Big Bear Choppers,
Big Dog, Titan and IronHorse killed the chopper market by flooding it with cookie-cutters
until they just weren’t cool anymore. Look
where they are now, and the consumers who
bought into that instant gratification are stuck
with inferior product with little or no value.
That’s why they are all going back to customizing their H-Ds and other favorite brands. I
hope they’ve learned their lesson.
Flintrop: I think that ground-up customs
have evolved from scratch-built Softail replicas to big-tire choppers, and finally to very
high-end, one-off baggers. Everything is touring bikes currently. The latest piece that we
are involved in is setting up bikes with killer
sound systems — amps, sub woofers, etc. —
sound that you would not believe.
Yaffe: I don’t know for sure if the recession
played a part in the decline of the ground-up
custom market. We had already created the
custom bagger market before the bottom fell
out of the chopper market, so we never really
felt the recession. Bagger Nation at least
doubled its footprint every year for the first
five years and we’ve seen about a 30 percent
increase in sales annually since then. Lucky
timing on our part.
Fairless: We are still doing several groundup customs each year. But we are doing way
more custom bikes where we start with a
Victory or a Harley and customize it to the
customer’s liking. The ground-up customs
seem to be bought by companies as advertising tools. I like it better when we customize
an existing bike — it’s quicker and the end
result is the same.
Yaffe: The custom ground-up market
thrives on innovation and uniqueness. There
will always be a customer and market for a
unique, well-built hot rod. Folks like to customize their bikes to fit their unique vision of
what’s cool. The OEMs and aftermarket have
a good relationship and, in my opinion, one
wouldn’t exist without the other.
JANUARY 2013
ES169896_DN0113_026.pgs 12.19.2012 19:46
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For more information visit www.Dealernews.com/readerservice
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sales
In the
hot seat
SADDLE SALES CAN OFFER DEALERS A 30 TO 40
PERCENT MARGIN – AND THE MARKET IS HEATING UP
By Dennis Johnson
Clockwise from upper left: Low Profle Touring Seat from Drag Specialties
Seats, Saddlemen’s Adventure Track seat for BMW, Corbin’s Dual Saddle
seat for Ducati Diavel, Harley-Davidson’s Signature Touring Seat w/backrest
for Sportster, Spring Solo Seat from Drag Specialties Seats
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january 2013
ES170037_DN0113_028.pgs 12.19.2012 22:10
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A PAN, A CHUNK OF FOAM and a cover. A seat is a seat, right? A
mere butt holder.
Not so fast. Sales are booming in the seat market. It’s one of the
aftermarket segments that picked up when the recession killed unit
sales. Seat builders have responded by creating saddles that are more
functional than ever, with advanced materials and designs.
After all, a saddle is one of the main features on a motorcycle, ATV,
scooter, PWC, or snowmobile that connects the rider to the machine
through an area of the body that demands extreme comfort and a
delicate touch. It can also help riders to more easily reach the ground
or the controls, fnd a sweet spot during a long haul, help hold cargo,
or even keep those aforementioned buns warm.
So it seems a seat isn’t just a seat but a feature-rich product that
holds good margins and allows dealers the chance to directly improve
their customers’ riding experience. It’s also one of the frst OE items
that a customer wants to replace, whether for style, comfort or both.
“Seats are such a personal thing from a lot of standpoints, whether
it’s the look, the feel or the comfort of it,” says Tom Motzko, who
handles vendor development for Drag Specialties. “Many different
manufacturers can meet the many different needs of riders. We’re
even fnding that some people own more than one seat. What’s really
interesting, from our company’s standpoint as a major distributor, is
that in the last four years … all seat sales have done very, very well.
I don’t care if it’s ours or any of the other brands that we distribute.
They’ve all done well.”
Motzko speaks from the perspective of a longtime player. He
worked for E&S Coach and Saddlery before it became part of the
LeMans Corp. family, where it eventually morphed into the V-Twincentric Drag Specialties Seats. In addition to seeing the bump in sales,
he’s also watched as the various seat manufacturers have settled into
their own business or product niche.
Motzko adds that the manufacturing process has improved
exponentially to the point that just about any seat from any builder
is “absolute perfection,” and the materials being used are nothing
short of amazing. For instance, Drag uses an exclusive solar-refective
leather covering on its seats which lowers the temperature of the seat
Corbin’s Canyon Dual Sport Saddle for Triumph Tiger Explorer
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
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ES170043_DN0113_029.pgs 12.19.2012 22:10
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sales
when the bike is in the sun. “Of all the products on a motorcycle … seats have really come a
long way,” Motzko says.
TUSH TECHNOLOGY
Saddlemen has added more than 400 new products, including luggage, to its lineup
over the past three years, according to sales and marketing director Ron Benfeld. The
company, which distributes through Parts Unlimited and Drag Specialties, makes seats
for everything from its fagship Gold Wing Road Sofa to the Adventure Track line for
the dual-sport/adventure market. Also part of the lineup are the private-label seats the
company develops for some major OEMs, along with snowmobile seat covers, sportbike
seats, classic touring setups and a line of saddles designed by popular custom motorcycle builders.
The Adventure Track for Ducati’s Multistrada, Benfeld says, is one of the most advanced seats being made. It incorporates Saddlemen’s proprietary progressive density
foam, trademark gel inserts, different materials for rider and passenger surfaces, built-in
A dealer has access to several lines of
motorcycle seats, so it becomes a solution
center for a person who buys a new bike.
For more information visit www.Dealernews.com/readerservice
cargo mounting points, a channel to relieve perineal pressure, and optional fve-way
adjustable heating.
Saddlemen builds all of its seats at its Rancho Dominguez, Calif.-based facility south
of Los Angeles, keeping every manufacturing step in-house, from R&D work and building the foam molds, to pouring the foam and gel inserts, to cutting and sewing the seat
panels. The company turns out about 150 seats a day, Benfeld says.
Controlling all processes means the company can respond quickly to market demands
by designing new seats and incorporating new features into existing models; it also can
work constantly to come up with new, advanced designs, Benfeld
says. Company owners Tom Seymour and David Echert support a
“skies the limit” approach to research and development, he adds.
GODFATHER OF SEATS
For more information visit www.Dealernews.com/readerservice
30
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You can’t discuss the seat business without mentioning Mike
Corbin. He’s been in the game since 1968 and still works to build
saddles for all brands and any model his company, Corbin Motorcycle Seat and Accessories, can get its hands on.
When Dealernews talked with Corbin in late fall, the company
had just fnished making seats for Honda’s new NC700X and a
Moto Guzzi Griso, designs it will add to a collection that goes all
the way back to the 1958 Harley-Davidson Sportster. The company has about $9 million worth of mold sets that take up about
half the building.
Seats, Corbin says, are a very lucrative business for dealers.
“When a new motorcycle comes out, they have what you call a
showroom seat,” he explains. “It’s relatively soft and narrow, so
when a variety of bodies sit on the bike in the showroom they say,
‘Oh, it’s nice and cushy.’ That helps sell the bikes to a wide range
of body styles.
“These soft seats, basically you’ll fall through them after the
frst long ride,” Corbin continues. “The dealer has, at his fngertips, the availability of several lines of motorcycle seats, some
from distributors, some from manufacturers, so he’s a solution
center for a person who buys a new bike.”
Dealers should take a look at their best-selling bikes and for
the styles that have been in production for a long time — Harley’s
FLH is a good example — and then stock some models for those
bikes, Corbin recommends.
Corbin only builds seats to order. It will work with a dealer to
get detailed information about the rider, data it combines with
decades of experience to make an educated guess on what seat
january 2013
ES170042_DN0113_030.pgs 12.19.2012 22:10
ADV
AT THE STORE: HOW TO STOCK AND DEMO
Tom Motzko of Drag Specialties says
seat sales are a good way for dealers
to connect with their customers, given
that so many want to swap out their
stock saddle and need help getting
properly set up and comfortable on their
motorcycles. Dealers should be adept
at showing customers such features as
backrests and different kinds of leather,
even gel padding and heating options.
And consider this: Seats can carry a 30
percent to 40 percent margin.
The problem is, much like with
handlebars or exhaust systems, seats
come in a myriad ftments, styles and
confgurations, and are bulky and
awkward to stock and display. And then
there’s that comfort factor: what works
for one customer might not work for the
next. It’s also a product that begs to be
tested — usually for a good, long stretch
of highway miles.
Some seat manufacturers have
programs or systems in play that allow
customers to at least sit astride a couple
different seats, or even install them for a
demo ride. Harley-Davidson has a dealer
demo program that allows customers
to test a variety of popular seat models.
Saddlemen dealers can obtain a fxture
on which different seats can be mounted
and tried out. The team at Corbin
uses detailed customer information to
custom-build a saddle that founder Mike
Corbin says fts the bill most of the time.
The Motor Co. started its demo
program in April 2012 and quickly
expanded the number of ftments available to dealers, says Jennifer Hoyer,
Harley-Davidson’s marketing and media
relations manager. “It’s wildly successful and hugely appreciated by customers
who want to take the seat for however
long the dealer lets them, to fnd out if it’s
the right seat,” she explains.
Harley also has a custom seat program
in which customers can build a seat
online by choosing from more than 1,300
possible combinations of design, style and
color. Hoyer says seats featured in the
demo program include a wide variety of
touring models — including the popular
Hammock, which has built-in suspension;
the narrow Reach seats, which allow riders to completely touch the ground; and
the Tallboy model, which sits tall riders
further back, giving them extra room to
reach the controls.
Given Harley’s massive and diverse
customer base and years of selling motorcycles, it knows that if a rider has a more
comfortable seat, he or she will want to
ride longer, Hoyer says.
“We do our best from an OE standpoint
to get what we think fts the nature of
the motorcycle, but obviously there are
so many tastes and preferences … we do
what call frst-to-market accessories (such
as seats, windshields and backrests) to
make sure that we have seats available
for any new model that we make,” Hoyer
notes.
If you’re working with a seat manufacturer that doesn’t have a demo program,
consider what kind of bikes you sell and
service most often and stock a small
selection of models for those units, Drag’s
Motzko recommends. Or if you have had
success with a particular brand or two,
stock models from those manufacturers
to cover the most commonly swappedout OE seats, he adds. You also can help
a customer pick a seat from a catalog;
a quick distribution cycle means that
catalog and online orders can be shipped
to the dealer in one or two days.
would work best. “Our batting average is very high, in the high 90s,” Corbin says. “It’s like
buying a new baseball glove or new boots; they feel stiff at frst [but eventually break in].
If something does go wrong with the customer, they can send their seat back with comments, and we’ll make adjustments for them.”
A retailer also can write an order, send the customer to Corbin’s headquarters in Hollister, Calif., and make money off the transaction. (Customers using Corbin’s Ride-In Service
are able to go directly to the facility and get their seat made while they wait.)
“Seats are a proft center and can carry anywhere from 25 to 40 percent proft for dealers. … They can charge for install and for shipping and handling,” Corbin continues. “It’s
a good dollar volume item [too].
“A small seat can be close to $400 now. Seats go all the way up to twelve-hundred
bucks. At 40 percent, there’s a good chunk of money there.”
For more information visit www.Dealernews.com/readerservice
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ES170041_DN0113_031.pgs 12.19.2012 22:10
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ADV
SALES
Moving on
THE ELECTION IS OVER. WHAT ARE YOU GOING TO DO WITH YOUR FUTURE?
Tory Hornsby is
the executive
vice president of
Dealership University and Powersports Marketing.
Dealership University is directing
the Dealernews
Learning Experience educational
seminars at the
2013 Dealer Expo,
Feb. 15-17 in
Indianapolis.
WERE YOU SURPRISED that Obama was re-elected?
I wasn’t. I can do the math. According to IRS Tax Data
in 2010:
• 50 percent of the U.S. population pays a mere
2.7 percent of federal income taxes each year.
(We’re talking incomes of less than $33,048 per
year.)
• The top 25 percent of earners pay more than 86
percent of all federal income taxes.
• Approximately 47 percent of income earners
pay zero federal taxes.
• If you earn more than $113,799 per year, you are
in the top 10 percent of all income producers.
The top 10 percent earn 45 percent of the gross
income in the U.S., but they pay 70
percent of federal income taxes at a
higher tax rate.
Obama’s message during the campaign
was clear: The rich need to pay their fair
share. My response: “Mr. Obama, based
on the data the ‘producers’ in America are already
paying more than their fair share. In fact, the top 1
percent pays 38 percent of all taxes. How much is fair
to you?”
I still hear the election woes from dealers across
the country. But as I told my account executives the
day after the election, “Today is what you make of it.
Neither Obama nor Romney would have added $1 to
your bank account this week. Only you can do that.”
Neither Obama nor Romney would have
added $1 to your bank account this week.
Only you can do that.
SO, NOW WHAT?
Check out Tory Hornsby’s big social media
seminar, “Social Media and Reputation
Management: The
Fine Line Between
‘Time Vampire’ and
Effective Marketing,”
which will be held at
the 2013 Dealer Expo,
Feb. 15-17 in Indianapolis. A complete
seminar description,
along with the full
schedule of seminars,
workshops and SuperSessions, is available
on www.dealerexpo.
com
32
DEALERNEWS.COM
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and how you’ll know you’ve accomplished your
goal.
W.G.M.G.D. stands for “What Gets Measured Gets Done.” When you measure your
progress it helps you stay on track and motivates
you to continue putting in the effort.
• Attainable — The reason that many goals aren’t
reached is because they weren’t achievable from
the start. But while you don’t want to make this
mistake, goals should push you out of your comfort zone. Low goals produce low motivation
and therefore are often missed, so ånd a good
balance.
• Relevant — Don’t set meaningless goals. Each
I recommend you start off your new year just as you
should have started 2012: by setting goals. The very
act of setting and writing down your goals will help
you attain your goals.
Perhaps you know the story where interviewers
back in 1979 asked new graduates from Harvard’s
MBA Program about their goals: They found that 84
percent had no speciåc goals at all; 13 percent had
goals but they were not committed to paper; and only
3 percent had clear, written goals and plans to accomplish them. In 1989, they were interviewed again:
The 13 percent who had goals were earning, on
average, twice as much as the 84 percent who had no
goals at all. Even more staggering: the 3 percent who
had clear, written goals were earning, on average, 10
times as much as the other 97 percent put together.
Goals are most powerful when they are S.M.A.R.T.:
Speciåc, Measurable, Attainable, Relevant and Timely.
• Specifc — A speciåc goal is more likely to be
accomplished than a general goal. Answer the
tough questions about your goal: who, what,
when, where, how, why? Write them down and
keep track of them.
• Measurable — Deåne what being successful is
one should be important to you and make a
difference in your personal and/or business life.
Relevant goals drive you, your family and your
business forward.
• Timely — Goals must have a deadline. No
target date means there will be no sense of
urgency. For instance, if you want to lose 15 lbs.,
setting a target date of when you want to lose it
by will increase your chances of success.
If you have a difåcult time coming up with goals,
here is an excellent exercise that has really made a
difference with me. I’ll base this on setting business
goals, but this is equally productive for personal and
family reasons.
Sit down and spend a few minutes thinking about
how your business would be in an ideal world 10 years
from now. By ideal I mean really good, but still realistic. Think about how your store would look inside and
outside. How does your staff dress? How do they treat
customers? What is your sales process? How many
units do you sell? What is your proåt per unit sold?
How much money do you make, etc.?
When you visualize and write down how your life
would be in an ideal world 10 years from now, it
provides a clear deånition of what your short-term
goals are. It also begins building your self-image. You
see the goals as achievable, and begin to mentally
develop the traits and personality that allows you to
possess them.
Set your goals, make them clear and write them
down. Look at them often and track your progress so
you can make your way to earning 10 times more than
the dealers who don’t. And remember, whether you
like Obama or not, he’s not going to add one dollar
to your bank account this week — but you can.
JANUARY 2013
ES169893_DN0113_032.pgs 12.19.2012 19:46
ADV
Legacy.
You’ve made your
Now make HISTORY.
Become a part of something you can believe in.
The all new Indian Motorcycle. Backed by the
financial power and engineering prowess of
Polaris Industries Inc. The road ahead has never
looked better for this American icon. If you proudly
stand apart, join us at IndianMotorcyclePride.com.
Indian Motorcycle is a division of Polaris Industries Inc. © 2013 Polaris Industries Inc.
For more information visit www.Dealernews.com/readerservice
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marketing
Dealer Scorecard:
Competition Accessories
Dealer outperforms national average but can improve results further
By Neil Pascale, Dominion (Special to Dealernews)
Competition ACCessories, a multiline in Springfeld, Ohio,
outperforms in several marketing and sales categories but still can
improve results. So concludes its Dealer Scorecard, a Dominion Powersports’ initiative that identifes strengths and opportunities in core
online marketing areas. Similar reports will be provided at no expense
to dealers who attend Dealer Expo in February (reservations required).
Competition Accessories’ Scorecard illustrated an operation outperforming its national competition in several critical areas, including
online inventory (more consumers view the dealership’s used and new
inventory on CycleTrader.com than the national average), website traffc (it draws more consumer traffc than its competition) and social networking (it communicates with more consumers on Facebook than its
competitors and engages consumers more than the industry at-large).
Areas of opportunity include unit pricing. It is within 5 percent of
the average regional price on CycleTrader.com for a specifc model
less than half the time, according to Scott Owens, general manager for
Dominion Insights. “That’s not uncommon,” Owens said. Dealers often
have pricing beyond or below the average price for models on CycleTrader.com. “In fact, that’s right about the average we see nationally.”
Dealers can identify average model-specifc pricing on CycleTrader.
com, and can receive automatic e-mails from Dominion from whenever
their model has eclipsed regional pricing levels at a level they prede-
termine. Competition Accessories may consider that step; several of its
vehicles were above regional selling price averages, including a 2011
Vulcan 900 that was nearly 15 percent above the regional average.
Its market has 23 other vehicles of the same year and model as what
the dealer is selling. That amount of competition for a single model is
more than 25 percent higher than the national average. “Because of
that,” Owens said, “how they present their vehicles will be absolutely
key to bringing about a higher inventory turn. [It] can add more photos
and videos to their online unit listings and should see huge results from
that. ...the difference in consumer activity with units that have four to
fve unit photos versus just one photo is signifcant – up to fve times
more clicks and impressions with multiple photos.”
The dealer outpaces the industry’s average for Facebook Likes and
social engagement. “They’re doing a nice job of engaging their readers, not only with postings that are industry-specifc but are conversational in nature,” said Patricia Dao, director of social products for
Dominion. “However, too many of their posts do not include photos or
videos, meaning they may not be reaching all 1,000-plus of their Likes
on a consistent basis because of how Facebook operates.”
Competition Accessories grades well above the norm for many of its
key sales and marketing areas. “If they can address these opportunities,” Owens said, “2013 should be a terrifc year for them.”
Dealer Scorecard: Competition Accessories (Springfeld, Ohio)
website traffic
Natl. Avg. Dealer Avg.
11,935
27,747
1,879
3,731
844
1,728
35%
30%
Grade
A
A
A
C
Explanation
Total PVs to dealer website
UVs for month
RVs for month
% of people who land on the home page and immediately leave
online merchanDising
Natl. Avg. Dealer Avg.
Vehicle views
926
1,516
Impressions
103,471
340,492
Presentation score
54.8%
56.8%
Grade
A
A
B
Explanation
Number of times consumer clicks to view the detail page of the unit
Number of times vehicles show in CTOL search results
Score for online presentation (photos, videos, prie, description). 80% is
good.
% of vehicles within 5% of the average in the region for that model
Average number of days an unit has been for sale online
Number of units in direct competition for that year/make/model in region
Number of times consumers click to take action from a vehicle detail page
Traffc/page views
Unique visitors
Returning visitors
Bounce rate
Competitive pricing
Age of inventory
Competitive inventory
Clicks
41.7%
145
19
109
45.4%
255
24
185
C
D
D
A
social networking
Natl. Avg. Dealer Avg.
Facebook fans
770
1,165
“Talking about this” on FB
42
86
%“talking about this” on FB
5%
7%
Facebook posts/month
10
20+
Facebook “were here”
150
272
Grade
B
B
B
A
A
Notes:
Website Traffc source: Dealer’s PSN website
Online Merchandising source: Dealer’s CycleTrader.com account
Social Networking source: Dominion Facebook/industry study
Dominion will unveil its new sales and marketing Scorecard service with free one-on-one consults with dealers
next month at Dealer Expo in Indianapolis. For more information or to reserve a slot, contact Neil Pascale at
[email protected]
34
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January 2013
ES169891_DN0113_034.pgs 12.19.2012 19:46
ADV
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For more information visit www.Dealernews.com/readerservice
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ES165550_DN0113_035_FP.pgs 12.10.2012 13:51
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marketing
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Friday, Feb. 15 – 9:15 a.m. to 10:15 a.m.,
Saturday, Feb. 16 – 10:30 a.m. to 11:30 a.m.
Whether you’re an AdWords veteran or just
looking to learn, join Brad Cannon, vice president of operations at Dealership University, as
he pulls back the curtain on Google, exposing
common rookie mistakes and teaching you what
it takes to execute a successful campaign that
turns “clickers” into buyers.
Social Media and Reputation Management:
The Fine Line Between “Time Vampire” and
Effective Marketing
Friday, Feb. 15 – 8 a.m. to 9 a.m., Sunday,
Feb. 17 – 9:15 a.m. to 10:15 a.m.
How do you know what’s worthy of pursuit and
what’s a waste of time? And once you’ve identifed the most important sites for your business,
how do you manage them all? The solution:
A quantifable system. Dealership University’s
Tory Hornsby will reveal the fne line between a
strategy that produces results vs. chasing every
shiny new online object that comes along.
Integrated Marketing: Fishing with Multiple
Poles in the Water
Friday, Feb. 15 – 10:30 a.m. to 11:30 a.m.
The once-simple task of managing your dealership’s advertising campaigns has become quite
complex. Choosing your marketing mix and
ensuring a consistent message requires a new
approach. During this session hosted by Dealership University’s Eric Pedretti, you’ll discover why
some of the “hot” new channels are nothing
but show, and how to coordinate your efforts so
they’re complementary, not conficting.
Designing Your Store for the Future: A Simple
Remodel for Signifcant Results
Saturday, Feb. 16 – 9:15 a.m. to 10:15 a.m.
Maybe you can’t do a full renovation, but you
can implement a more cost-effective foor reset
or a targeted
remodel in
one showroom area for measurable results. Ask
the questions, and learn the answers as store
design and merchandising veteran Jim Rasmus
shares the latest trends for store remodels, and
presents the recession-proof merchandising
techniques that help you control customer fow,
increase product awareness and boost impulse
purchases.
Using Conquest Marketing and Retention
Advertising to Grow Market Share and
Boost Repeat and Referral Business
saturday, Feb. 16 – 8 a.m. to 9 a.m.
With only 3.6 motorcycles in use for every
100 people living in the United States, you
must have a targeted plan to identify and
market to your buying base. Dealership University’s Rod Stuckey will help you discover the
insider secrets to exponentially increase your
bottom line.
For more information visit www.Dealernews.com/readerservice
36
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SERVICE
Training for the real world
MMI’S NEW DSO PROGRAM FINE-TUNES THE FUTURE FOR ITS GRADUATES
AND FOR THE DEALERS THAT HIRE THEM
FUEL FOR
THOUGHT
Dave Koshollek
teaches sales and
service classes for
dealers. Contact
him at dakoenter
[email protected],
or via editors@
dealernews.com.
What are the fve
biggest risks to your
service business in
2013? Learn these,
along with your
revenue opportunities, in a special (and
free) two-part Service
THE FIRST COMPLAINT I heard about an MMI
graduate was in 1978.
I was working at a Honda dealership in Phoenix,
Ariz., when a Motorcycle Mechanics Institute graduate applied for an entry-level mechanic’s position and
was given a tire change to test his skills. He tried valiantly but failed miserably. The service manager asked
for my opinion — he liked the “kid.” I suggested
giving him a week to try out, since he was a tall guy
and could load bikes without assistance, which saved
manpower. Greg (not his real name) learned very
quickly and went on to become an excellent technician who made the dealership a lot of money.
Lesson: You can’t judge a book by the frst page.
When I took a technical trainer job at MMI in 1981,
I vowed to change the system. I wanted MMI grads
to be respected and in high demand. As hard as I and
hundreds of other well-intentioned instructors tried,
we never achieved 100 percent success. I learned
there will always be some MMI graduates, and grads
from other technical schools for that matter, who
won’t make it as professional motorcycle technicians.
Some forget too much and make too many mistakes,
some will not be a good physical or emotional ft to
work eight hours a day standing alongside a motorcycle lift, and some will have behavioral issues.
Since the early 1980s MMI’s education format has
been modular: students moving through a unique
clinic every three weeks. Students who successfully
complete the eight “all-brands” clinics continue on to
brand-specifc electives like their factory-supported
programs, where training continues — again in threeweek clinics.
The modular format does an excellent job of
delivering a lifetime of knowledge in the period of
one to two years. The results have ranged from good
to excellent, largely determined by the learner’s mechanical aptitude, work ethic and attitude. But results
could be better. Enter MMI’s new Dealer Service
Operations (DSO) program that all Harley students
have been attending since last summer.
Workshop hosted by
Dave Koshollek on Fri-
THE FINE-TUNING
day, Feb. 15, at Dealer
DSO is a six-week program designed to engage
students in a real-life environment but in a controlled
atmosphere so all are challenged equally. This ensures
all students encounter similar experiences and that
instructors and potential employers can assess student performance more accurately. DSO is the last six
weeks of training, making those experiences the most
likely to be fne-tuned and remembered.
DSO consists of 30 fve-hour days of testing and
experiential training in the entry-level technician, Service Consultant, Chrome Consultant and service parts
Expo in Indianapolis.
For more
information, visit
www.dealerexpo.com
38
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coordinator areas of responsibility. Consultant and
coordinator assignments total six days of training and
provide students with an opportunity to feel what it’s
like to perform these duties. Technician assignments
include 16 different days of unique work combinations. On technical days, students receive a repair
order listing the tasks to be performed, which range
from routine motorcycle maintenance to electrical
diagnostics to component repair.
All tasks were derived from the work entry-level
techs perform in the frst six months of Harley-Davidson dealership employment. Harley-Davidson University (HDU) and MMI co-developed the curriculum.
Class size is 14 students max, so instructors can
accurately monitor all activities. There is no screwing
around and no student inactivity because everyone
is dead-serious about the outcome of their testing.
The primary focus is to pass DSO with the best score
possible to make one more desirable for dealership
employment.
There’s a bonus for students who have completed
all 49 HDU PHD online training programs prior to
DSO. If they pass DSO too, and are hired by a Harley
dealer, they achieve “Technician Level” status in
HDU’s Technician Recognition Program.
DSO is a diffcult course. Students must achieve
a minimum of 80 percent overall to pass, which, for
technical grading, includes scoring on the correct
completion of all assigned tasks within the allotted
time (usually 80 percent of fat rate), using all tools
properly, correctly completing the repair order following standard operating service procedures, and
adherence to all safety practices. Mess up in any way
and you’ll receive a reduction in points.
For example, if a student used a tool improperly
or performed a procedure incorrectly, he or she loses
10 points for each infraction. Just two little mistakes,
and you’re right on the threshold of failure. Scoring in
the Consultant and Coordinator positions is similarly
strict and extremely valuable to their career. Several
students have discovered they should apply for a
service support position rather than a technician one
because that’s where their natural talents reside. This
reduces the mismatch of skills in the feld.
I predict MMI’s DSO program will dramatically
improve the quality of MMI H-D graduate performance, make it easier for dealers to assess graduates during the interview process, and increase
the pool of individuals who are willing and able to
work in a number of service department positions.
Will DSO eliminate all MMI complaints? No,
unfortunately there’s at least one bozo on every
bus — just don’t blame the driver now, because
the program and the process are spot-on.
JANUARY 2013
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ACCESSORIES
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SHOWCASE
BUSINESS SERVICES
HELPMERIDE
VErsahaul
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ACCESSORIES
CRAMPBUSTER
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A L LT E R
BUSINESS SERVICES
STEALTH
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The HENRY HAM AGENCY
knows the insurance biz!!!!!
They have created WORLD
CLASS insurance programs for
M/C Dealers, Service Shops &
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Manufacturers.
86 Years Experience
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IT’S WHAT WE DO!!!!!
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In the biz since 1926…
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[email protected] | (303) 744-1343
ADVERTISING
ResouRce Guide
RESOURCE GUIDE
Comstock, IMAGEMORE Co, Ltd./GETTY IMAGES
SELLING ONLINE, VOLUMES I & II
YOUR Price: $74.95
Selling
Online
Vol II
1
3
5
Socializing Online
Going Social
Will You Be My ‘Friend’?
6
Blogging 101
7
Come Together
8
The Beauty of User Reviews
9
The Ultimate Combination
11 Roll Your Own Social Network
12 An Open Letter From an E-Tail Partner
13 Increased Revenue – Guaranteed?
14 Words That Sell
15 It’s All About Image
16 Recession-Pricing the Smart Way
17 Keeping It Short and Sweet – With a Tweet
19 Embrace the Evil Empire
20 Be Your Own Worst Nightmare
21 You Get What You Pay For
22 Internet Manager a Must
23 Future Shock
24 Branching Out of Your Niche
25 Online, It’s All About Presentation
26 How to Handle a Hijacking
27 Hiring the Silent Salesman?
28 E-Tailer Roundtable
Shop online or call to place order, 800.598.6008 (US)
or direct 218.740.6480
31 Digital diversions
32 A supply chain of pain
Andrew Dernie/Getty Images
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SHOWCASE
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DEALERSHIP OPPORTUNITIES
KANDI USA
LONSKI
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D E A L E R S WA N T E D
100%
MADE IN THE
USA
DISPLAY FIXTURES
GlassGLASS_ACT
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Honda Harley Davidson Kawasaki Susuki Yamaha
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ADVERTISING
ResouRce Guide
RESOURCE GUIDE
MERCHANDISING 101, VOLUMES I & II
Merchandising
photo by GARY ROHMAN
Vol II
101
1
2
3
What’s Your Clearance
Excuses to Celebrate
The Power of Cohesive Communications
4
Decking Your Halls
5
Making the Best Out of Space
6
PG&A Payoff
11 Think Inside the (Big) Box
12 The Newest Member of Your Sales Staff?
13 The New Face of Fixtures
14 Anatomy of an Open House
15 Display Ideas From the Top 100
16 Event Planning 101: Chapter One
Shop online or call to place order, 800.598.6008 (US)
or direct 218.740.6480
Rock Eagle Store Fixtures
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Manufacturer Of The Most Durable, Stable, And Reliable
Mug Holding System Available For Power Sports Vehicles
YOUR Price: $74.95
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17 Event Planning 101: Chapter Two-What is the desired result?
19 Event Planning 101: Chapter Three-“How will I pay for this?”
THE VOICE OF POWERSPORTS RETAILERS
Merchandising 101
save on these and other educational resources at
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www.rockeagle.com
The GrooveTube System
Our unique
GT-Helmet
Tower holds 35-40
helmets with only
a 40” footprint!
They are durable,
cost effcient and
move easily on
heavy-duty casters.
Customize to match
your store design.
Any size, shape or
GT-Helmet Tower
color is available.
The new GT-TShirt Rounder!
Very high capacity.
We took the
standard plain old
round rack that has
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This GT-Mobile
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This GT-”Lil Joe”
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all of your heavy
items. Full mobility
and on heavy duty
casters. Great
alternative to the
standard wall rack.
ROCKEAGLE
GT-Mobile Slat Unit
Search
GT-“Lil Joe” Rounder
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800-747-2270
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products and services
SHOWCASE
DISTRIBUTORS
KK MOTORCYCLES
KK Motorcycle Supply
Call Today!
855.832.2403
www.kk-dealer.com
DISTRIBUTORS
JC Motors
ADVERTISING
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KK has everything you need
to get your customers
equippied for the snowy
months ahead...
O N L I N E L I S T I N G S O F T WA R E
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Dealers Call for Discount!
For Charter Pricing details,
Contact
Karen Gerome: 800.225.4569 x2670
Auction123
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SHOWCASE
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PA R T S
PA R T S & A C C E S S O R I E S
SUPERSPROX
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PA R T S
HIGHWAY HAWK
PA R T S & A C C E S S O R I E S
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what these
are?
COMPANY NAME
PA R T S & A C C E S S O R I E S
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OEM P
Need OEM Parts in Hurry?
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marketers, fnd out more at:
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Genuine OEM Parts for, Street Bikes,
ATV’s, Dirt Bikes, PWC, Scooters,
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P E R F O R M A N C E PA R T S
products and services
SHOWCASE
R E P L AC E M E N T PA R T S
THE PREMIER WORLDWIDE
WATERCRAFT PARTS DISTRIBUTOR
From high performance parts for racing, to the widest selection of repair
parts and accessories, Hot Products has it all. Our 2012 Catalog
features 292 pages with 81 pages of the newest Four
Stroke Performance parts available and in stock!
8830 Rehco Road Suite F San Diego, CA 92121
Phone: (858) 453-4454
www.HotProductsUSA.com
HOT_PRODUCTS
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MOTO ADVISOR
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SERVICE
ADVERTISING
SELLING TO WOMEN,
VOLUMES I & II
Photo: Getty Images/Image Source
ResouRce Guide
Selling
to Women
Vol. II
1
Female-Friendly
2
A Section of Her Own
3
No Rider Left Behind
4
Revving for a Cause
5
Find More Women on the Web
6
Create Customer Evangelists
7
Do you Hear Me?
8
Her Best Interests at Heart
9
Hunters and Gatherers
10 Love Letters
11 Millennial Generation
12 How Well Do You Know the WomenÕs Market?
13 A Commitment to the WomenÕs Powersports Market
Shop online or call to place order,
800.598.6008 (US)
or direct 218.740.6480
Compiled from articles published
by the Voice of Powersports
Retailers, these resource guides
provide in-depth guidance on
selling, merchandising and
providing customer service to
women buyers.
Purchase the combo and save!
YOUR Price: $74.95
save on these and other educational resources at
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ADVERTISING
Cruise Ahead of
the Competition
To Advertise, Contact Karen Gerome
Tel: 800-225-4569, ext. 2670
Email: [email protected]
Search for the company name you see in each of the ads in this section for FREE INFORMATION!
January 2013 DEALERNEWS.COM
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products and services
SHOWCASE
Go to:
products.dealernews.com
ADVERTISING
MINDING YOUR BUSINESS,
VOLUMES I & II
photo by JOE BONNELLO
ResouRce Guide
Compiled from articles published
by the Voice of Powersports
Retailers, these resource guides
provide in-depth guidance on
Minding Your
Business
Vol II
1
Working for the Sale
3
No More Discounts
4
When the Experts ArenÕt Really Experts
5
Changing the Sales Process
6
Use What You Sell
7
Incentives For These Trying Times
8
Never Stop Advertising
9
A Little Help, Please
10 Help You Sell
management, sales and staf
issues. Topics include “What Do
11 DonÕt Scare the Locals Away
12 Dealers: ItÕs Time To Take a Risk
13 When ItÕs Ok to Share and Go Viral
14 A Minor Shift
Customers Want?,” “Working for
15 Building a Healthy Herd
17 Building a Healthy Herd: Part 2
18 Grow or They Might Go
the Sale,” “Repairing a Service
BONUS SECTION:
19 Online Layaway: Outsourcing the Headaches
20 Dealers Revive Layaway Programs
23 The Ups and Downs of Layaway Programs
Department,” and “Incentives for
24 Have You Hugged Your Tech Today?
25 Performance tracking
26 Operate at your peak
These Trying Times.”
Purchase the combo and save!
$
99.90
YOUR Price: $74.95
You Save: $24.95
Shop online or call to place order,
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Sugar Bear springers, old scoots,
and purple paint
THESE ARE A FEW OF MY FAVORITE THINGS ...
TIE-DYED
TALES
Rick Fairless is the
owner of Strokers
Dallas (a Top 100
dealer), Strokers
Icehouse and
Strokers Ink.
On the
Web:
Visit www.
dealernews.com to
read more Fairless
columns and letters
to departed loved
ones.
48
DEALERNEWS.COM
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DEAR GRANDMA AND GRANDPA,
I hope y’all are living large up there in Heaven.
I’m sorry it’s been so long since my last letter.
Hey Grandpa, are there motorcycles in Heaven? If
there are, do people customize them? I think in my
Heaven, everybody would ride old scooters. I mean,
wouldn’t it be cool if everybody rode pre-1979
bikes?
I still have my 1961 Triumph Trophy 650 Pre Unit.
I love riding that bike. Every time I ride her she puts
a smile on my ugly face. Those older bikes have
something special about them. I can have 10 bikes
pull into my bar and I think, yeah, yeah, yeah; wait
a minute, is that a Pan that just pulled in? I gotta go
check out that scooter!
Ain’t much cooler than an old Pan, or Knuckle, or
Shovel. The same thing goes for the old British bikes.
I have a 1969 Triumph Bonneville that I chopped
many years ago and I still get a boner when I ride
that bike — sorry, TMI, I know, but it’s true.
Oh well, things are going good down here in Dallas. Even though we don’t get much of a winter, we
still slow down around the holidays. I guess people
get caught up in all that holiday stuff with all the
eating and shopping. Motorcycles take a back seat
for a few months. Well, that gives us time to fnish up
some projects and start some new projects before
spring hits us.
I have several personal projects that are waiting on me to start. One is a 1970 Honda 750-4. I
bought it several years ago. It’s in one of those old
Amen “Plunger” frames. It’s set up bobber-style and
it’s cool and all, but I want to chop it! I have always
wanted a Honda 750-4 Chopper. I mean a long,
stretched out chopper with a coffn gas tank and
Sugar Bear springer front end.
Those 750-4s were bad dudes in their day. I had
a guy on one in the ‘70s race me on my 1974 XL.
That cat blew me and my 1000cc Sportster into the
weeds. I’ll never forget that embarrassment!
More recently I bought a one-owner, 1975 Electra
Glide. Ya know what, for once in my life, I’m not
gonna change this bike all up. I’m gonna put it back
to stock specs and make it look just like it did the
day it rolled outta Milwaukee. I may do a few things
like chrome some stuff that was originally polished
and clean a few things up, but pretty much this bike
will be stock.
I also have a chopper I built 15 years ago that I
recently bought back, and I’m gonna completely
rework it. It’s in a long, stretched-out Pat Kennedy
frame with a Sugar Bear Springer front end. When
I’m done with this bike it’ll ft right in with the choppers from the ‘60s and ‘70s.
I thank God every day that I’m able to scratch out
a living doing what I love so much. I think most of my
MIBs (Motorcycle Industry Brothers) feel the same
way I do.
BACK TO BUSINESS
A year ago I started a new company called RF
Custom Parts. We are making custom parts for
Harley and Victory motorcycles. Right now we are
concentrating on the Victory. We have designed
and manufactured a lot of cool parts so far, and we
have a lot more coming soon. I really like doing this
because it’s like a blank canvas in that the only limit I
have is my own imagination — and y’all know I have
plenty of imagination! Remember the time when I
was 12 and y’all left me alone for a couple of hours?
I got bored and found some purple paint in the barn
and I decided I’d surprise y’all by repainting the
barn purple? I thought you’d be so happy; boy was
I wrong. I didn’t mean to make you cry Grandma,
Everybody in town has a red barn, I wanted y’all to
have the coolest barn in Sayre, Okla. I know now that
it was a bad idea, but it sure seemed like a good
idea at the time.
I wish I could just spend all day, every day, creating cool parts and crazy bikes. But the last word
in the motorcycle business is business. That’s the
toughest part for me. I don’t like all the horsesh*t
(sorry, Grandma) that is involved in owning and running a business. But it has to be dealt with and I am
very good at dealing with it, but I still hate it.
I hate the paperwork and the spreadsheets and
the P&L statements. Hate ‘em! I hate talking to
bookkeepers and accountants and stinking bankers, and as a matter of fact, I hate doing business
with everybody who wears a tie. A cat wearing a
tie don’t impress me; actually, it depresses me! I
see some knothead walking in my door wearing a
tie and lugging a briefcase, I go the other direction
because I know he wants something from me and it’s
usually money! I call these cats pencil d*cks (sorry,
Grandma)!
I guess I’d better go for now, I’m sure y’all are
having a ball up there. You’re probably both happier
than a couple of 25-year-old newlyweds working on
starting your family! Y’all keep an eye on me down
here and if you see me screwing something up,
please feel free to send me a warning. I don’t know,
maybe I’ll step on a nail or something to remind me
to slow down and enjoy this life while I got it.
JANUARY 2013
ES169915_DN0113_048.pgs 12.19.2012 19:47
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ES170162_DN0113_CV3_FP.pgs 12.19.2012 23:41
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ES170155_DN0113_CV4_FP.pgs 12.19.2012 23:41
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