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JANUARY 2012
TRUE
V-TWIN AFTERMARKET • INDIAN MOTORCYCLE CHARLOTTE • DAVE KOSHOLLEK
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HOW
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RIDEICON.COM/LIMITER
VOL. 48. NO. 1 JANUARY 2012
CONTENTS
MAIN OFFICE
2525 Main St., Suite 400 • Irvine, CA 92614
Toll free 800-854-3112
949-954-8400 • Fax 949-315-3759
14
DEALER LAB — OCTOBER 2011: PERFORMANCE
EXCELS AGAIN
Net income up $15,190; used sales jump
by Joe Delmont
56
ASK FAIRLESS — RICK FAIRLESS
Fearless Fairless tackles the subjects of displaying at
dealer shows, and how to one-up the competition
MANAGEMENT
16
COVER STORY — FROM ENTHUSIAST TO LOYALIST
Good times and bad, Mark Moses has seen it all in his
journey with Indian motorcycles by Bruce Steever
SALES
26
NEW PRODUCTS
30
V-TWIN AFTERMARKET FEATURES
We highlight just a handful of vendors appearing at the
American V-Twin Dealer Show, including Bikers Choice,
Custom Chrome, Cycle Visions, Danny Gray, S&S Cycle
and more
MARKETING
40
DEALERSHIP UNIVERSITY — ROD STUCKEY
Nail your business basics for a 2012 boom
Big breakthroughs are great, but it’s the little things
that count
42
TIPS FOR MASTERING THE PRODUCT SHOT
These basic photography tips can help your Web sales
efforts by Cynthia Furey
44
COYNE POWERSPORTS DECKS THE MALL WITH
RZRS AND SPYDERS
Dealership opens small storefront inside Southern
California mall by Bruce Steever
SERVICE
46
48
FUEL FOR THOUGHT — DAVE KOSHOLLEK
What’s in it for your customers?
Consumers today want service before sales, so save
the pitch
TOOLS and SHOP EQUIPMENT
DEPARTMENTS
COLUMNS
ShopTalk ........................................... 10
5 Questions....................................... 13
Advertiser Index/Customer Service .. 55
From the Editors ................................. 8
Dealership University ........................ 40
Dave Koshollek ................................. 46
Rick Fairless ...................................... 56
COVER
www.dealernews.com
Brand Director – Kerry Graeber
[email protected]
CONTENT
General e-mail: [email protected]
Content Director – Mary Slepicka
[email protected]
Editor-in-Chief – Dennis Johnson
[email protected]
Senior Editor – Arlo Redwine
[email protected]
Associate Editor – Cynthia Furey
[email protected]
CONTRIBUTORS
Contributing Editor – Joe Delmont
Contributing Writers – Bruce Steever,
Holly Wagner
Columnists/Bloggers – Eric Anderson, Joe
Delmont, Rick Fairless, Dave Koshollek,
Mike Vaughan
DESIGN
Group Art Director – Beth Silva
[email protected]
Photographers – Jeff Barger, Joe Bonnello,
Brett Flashnick, Branimir Kvartuc,
Gary Rohman
Color separations and film produced by Advanstar Communications’ Scanning and Digital Prepress Departments
EDITORIAL ADVISORY BOARD
Eric Anderson, Morris Baker (Family
PowerSports), John Beldock (Erico Motorsports),
Gary Christopher (American Honda-retired), Joe
Delmont, Tom Hicks (Southern California Motorcycles), Dave Koshollek, Bob Ladd (Shenandoah
Harley-Davidson), Nathan Reeves (RevSport!),
Bill Shenk (PowerHouse Dealer Services), Mike
Vaughan, Steve Zarwell (Zarwell and Co.)
Content Submissions – Dealernews welcomes submissions for editorial consideration in print and/or on www.
dealernews.com. All submissions to be considered for
publication must abide by the Advanstar content license
agreement. Dealernews cannot be held responsible for
safekeeping or return of any submitted material. To review
the license agreement, e-mail [email protected].
AUDIENCE DEVELOPMENT/CIRCULATION
Kristine Buckman, [email protected]
Subscriptions, reprints and other requests, see page 55
TOP 100 COMPETITION
For information, visit www.dealernews.com/
top100 or contact Mary Slepicka:
[email protected]
Indian Motorcycle Charlotte owner Mark Moses eats, breathes, lives and rides the
storied American V-Twin brand. Photo by Brett Flashnick.
2
D E A L E R N E W S . C O M JANUARY 2012
DEALERNEWS.COM
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THIS MONTH @
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MANAGEMENT
SALES
SERVICE
MARKETING
DEALER EXPO
SHOP TALK
PRODUCTS
POWERSPORTS GROUP MANAGEMENT
TOP 100
TOP 10 LIST
Last month’s most popular
stories
ADVERTISING, SPONSORSHIPS AND
E-MEDIA SALES
1. Judge prevents HarleyDavidson from enforcing foreign online sales
restrictions
J.D. POWER: CUSTOMER SATISFACTION IS UP
2. Renton Motorcycles,
longtime Top 100 Dealer,
shuts its doors
The 2011 U.S. Motorcycle Competitive Information Study is out
— and the good news is that results are on the favorable side. Go
to www.dealernews.com/JDPower2011 to read the report, and
to access last year’s report.
3. Harley-Davidson notifying Wisconsin workers of
planned layoffs
5. Future of Big Bear Choppers in doubt
6. Sacramento jury mulling
ABS illumination suit
against Harley-Davidson,
local dealer
ARE YOU READY FOR INDY?
Registration and housing are open for fast-approaching Dealer
Expo and American V-Twin Dealer Show, descending on the
Circle City Feb. 17-19. You don’t want to miss the more than 30
free educational seminars, thousands of new products and much
more. Visit www.dealerexpo.com or www.vtwinshow.com to
learn more and to register.
7. BMW dealers to sell
maxi-scooters next year
8. Pro Italian wraps up the
holidays with window
displays
Outside the United States:
MEDIA OPERATIONS
www.AdsAtAdvanstar.com
Senior Production Manager – Karen Lenzen
DEALER EXPO
www.dealerexpo.com
SHOW OPERATIONS
Vice President-Operations – Tracy Harris
Director of Operations-Dealer Expo – Lorri Monty
EXHIBIT SALES
Sales Manager – Peggy Zamberlan
Sales Account Managers – Matt Cavanaugh, Cass
D’Arlon, Angela Gibbs, Patti Ros
Sales Coordinators – Christina Anders, Bonni Finer
9. Calmes Motorsports
charged with money
laundering
10. Top 100 Consumers’
Choice competition
underway
GET YOUR NEWS FEEDS FROM DEALERNEWS
Dealernews delivers the industry’s breaking news and Web exclusives through email with the DealerNEWS ALERT, distributed
on Tuesdays and Fridays. Monthly DealerNEWS reports also
bring you the latest in the Big Twin market, new products, dealership management and service management. Best of all, your
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MARKETING
Vice President-Marketing – Allison Lombardo
Marketing & Attendee Development –
Toni Lee-Chaudhary
www.motorcycleshows.com
For more information on exhibiting/supporting the Progressive International Motorcycle Shows, contact Jim Moore,
director of sales, at [email protected].
CORPORATE HEADQUARTERS
2501 Colorado Avenue, Suite 280
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Ph: 310.857.7500 • Fax: 310.857.7510
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DEALERNEWS.COM
Group Sales Director – Jim Moore, 949.954.8400,
[email protected]
National Sales Manager – Angela Gibbs,
815.882.7871, [email protected]
Showcase, Classified and Recruitment Sales –
Megan Russo, 440.891.2713, [email protected]
Sales Coordinator – Christina Anders, 949.954.8428,
[email protected]
China – Frances Wang, [email protected]
Germany, Austria, Switzerland, The Netherlands –
Hendrik Schellkes, [email protected]
India – Divya Guliana Khanna, [email protected]
Italy – Monica Tomei,
[email protected]
Pakistan – Muhammad Ayyob, [email protected]
Taiwan – Sherman Ko, [email protected]
UK, Denmark, Norway, Sweden, Finland –
Alastair Swift, [email protected]
4. Honda recalls 126,000
Gold Wings for brake
problem
6
Corporate Executive Vice President – Danny Phillips
Sales Director – Jim Moore
Brand Director – Kerry Graeber
Director-Electronic Products – Dana Fisher
Brand Coordinator – Jeanne Paloma
NEW PRODUCT OF THE DAY
Each day, Dealernews posts information on a new aftermarket
product that’s just been released so that you get the 4-1-1 within
days of its unveiling (and sometimes before it’s even publicly
announced!). Check out the home page at www.dealernews.com
every day for your daily product “news feed.”
JANUARY 2012
President & CEO – Joseph Loggia, EVP-Finance & CFO –
Ted Alpert, EVP-Corporate Development – Eric I. Lisman,
EVP-Powersports & Vet Groups – Daniel M. Phillips,
VP-Operations (Powersports, Vet, License, Fashion Groups)
– Tracy Harris, EVP Pharmaceutical/Science – Ron Wall,
VP-Information Technology – J. Vaughan, VP-Electronic Media
Group – Mike Alic, VP-Media Operations – Francis Heid,
VP-Human Resources – Nancy Nugent, VP-General Counsel –
Ward D. Hewins
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FROM
W
THE EDITOR
Dennis Johnson
Hats off to 2011’s model retailers
TALKING WITH ONE of the winners of our
Top 100 contest is like getting a peek into a
well-run retail machine.
Their passion is contagious, their smarts
apparent and customer knowledge dead on.
They also are heavily involved in their communities and give their employees a chance
to excel through good training, benefits and
work environment. I often end the conversation marveling at just how easy they make it
look, and wondering why more powersports
retailers don’t do X, Y and Z for their stores.
I’m thankful to these folks for giving me an
education on best practices, unique business
tactics and good-old ingenuity. I thought I’d
go back through our 2011 catalog and pick
some highlights from our monthly Top 100
dealer profiles.
• Maverick Motorsports, a multiline
— Metric and H-D — was one of the first
powersports dealers to carry Under Armour
sports apparel, including the brand’s running
gear. I’ve found that on long rides, especially
when it’s going to be warm and sweaty, their
performance T-shirts beat out soggy cotton
shirts any day. The store converted a vending
machine into a 24-hour Harley-Davidson
T-shirt shop. The machine sits in front of
the store allowing customers a chance to
buy with just a swipe of their credit or debit
cards.
• J&W Cycles, a 20-year winner of the
Top 100 contest, was an early adopter of
Facebook and other social media. It counts
almost 5,000 friends on it FB page and
boasts several employees who’ve clocked
in more than 20 years with the dealership.
There are eight full-time mechanics, all of
whom have at least 10 years working at J&W.
Co-owner Bob Jones served on the Polaris
Dealer Advisory Council, where he helped
implement the OEM’s wildly popular vehicle
ordering program.
• Signature Harley-Davidson of Perrysburg, Ohio, is sister store to Toledo
Harley-Davidson, both operating in one contiguous market, which owner Tim Sherman
coordinates to operate smoothly. The store
does big business in preowned units — they
made up 30 percent of the store’s revenue in
2010 — and has a reconditioning specialist
on staff who focuses on refurbishing used
bikes. Sherman also knows the benefits of
operating like an actual retail store by employing MotorClothes employees who have
8
DEALERNEWS.COM
JANUARY 2012
consumer retail experience. This helps with
everything from merchandising to implementing real-world stock turning procedures
• Deptford Honda Yamaha in Deptford,
N.J. Owner Donna Coryell took over the
dealership after her father died and worked
hard to grow it into a successful multiline
which garners Google reviews that say stuff
like this: “DHY is the best shop I’ve found
in the Tri-State area.” The staff is one-third
female, a ratio that could benefit many dealerships where women — and all that they
add — are in short supply.
• Scooternerds, Greensboro, S.C. Owner
John Hill requires his employees to pick up
40 hours of outside education a year, whether it’s through an OEM or any other powersports training program. The dealership was
also awarded the Retailer of the Year by the
Greensboro Merchants Association.
• Fay Myers Motorcycle World, located
just outside of Denver, is a multiline that
sells 10 different vehicle brands. The store
supports the Colorado Off-Highway Vehicle
Coalition, a statewide OHV advocacy group,
and was an early sponsor of celeb stunter
Jason Britton. The store also develops and
keeps strong relationships with local lenders,
which served it well during the recession.
• South Texas Suzuki, from Lytle, Texas,
harnessed the power of social media and
won the 2011 Dealernews Top 100 Consumer’s Choice award with nearly 38,000 votes.
• Grand Prix Motorsports was one of the
first 10 U.S. dealerships to take on the Zero
Motorcycles’ electric lineup, an acquisition
that allowed owner Bill Comegys a whole
new avenue for cross-marketing his store.
And he knows savvy marketing — Comegys operates Grand Prix Guns inside his
dealership, attracting an entirely new set of
customers. The store is also immaculately
merchandised, sporting one of the most
attractive Troy Lee Designs displays I’ve ever
seen.
• Xtreme Machines of Millstone Township, N.J., plays host to a good selection
of fabrication and welding tools in-house,
allowing the dealership to capture repair or
service work.
Dennis Johnson
Editor in Chief
[email protected]
SAVING PEOPLE MONEY
on more than just car insurance.
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Call 1-800-442-9253 today or visit your local office.
Some discounts, coverages, payment plans and features are not available in all states or all GEICO companies. Motorcycle and ATV coverages are underwritten by GEICO Indemnity Company. Boat and PWC coverages are written through non-affiliated insurance companies and
are secured through the GEICO Insurance Agency, Inc. GEICO is a registered service mark of Government Employees Insurance Company, Washington, D.C. 20076; a Berkshire Hathaway Inc. subsidiary. © 2012 GEICO
DEALERNEWS
ONLINE
S H O P TA L K
What you’re saying…
mulling ABS illumination suit against
Harley-Davidson, local dealer”
I AGREE WITH Harley-Davidson
these people are going after deep
pockets. Having owned the motorcycle for over a year before the
accident, the owner should certainly
know whether it had ABS brakes or
not.
Join the
— Ed. V., Howard City, Mich.
conversation
by clicking on
“Shop Talk”
on the
Dealernews.com
home page.
IT IS TRULY DISTURBING that this
lawsuit can make it to a superior
court. I am California-born and
raised, and will freely admit that we
allow more than our fair share of frivolous lawsuits to make it into court.
The simple fact is that the rider is
responsible for understanding the
capabilities of his or her motorcycle.
Mr. Wilson should have known if his
bike had ABS or not, and how that
would affect the performance of the
machine. Additionally, ABS does
not mean that you will never get in
an accident. So even if the bike was
equipped with ABS it is not a guar-
antee that this accident would not
have played out the exact same
way. Although it is sad that Mrs.
Wilson was so severely injured, it is
in no way the fault of Harley-Davidson or Sacramento H-D. Just as a
side note, I know a lot of the guys
that work at Sacramento H-D and
they are some of the best in the
business. I have every confidence
that they properly delivered this
bike to Mr. Wilson and explained
all features at the time of delivery.
One can only hope that Harley-Davidson receives a favorable verdict
from a sensible jury.
— Powersports Solutions,
Sacramento, Calif.
A reader responds to “Ride in Peace:
racer, industry veteran Dane Leimbach”
DANE WAS A CHAMPION. He
was the “high bar” that I chased.
Godspeed, Dane.
— Mike Deyo, Orofino, Ind.
A reader responds to “Retail group
says online sales tax advantage stifles
local stores”
FROM THE SHOP TALK FORUMS
A reader responds to Dealernews columnist Mike Vaughan’s blog post,
“Where are all the OEs?”
The thing that stands out to me is the idea that it’s not business
as usual anymore, and the OEs are sensing that. The economy is
horrible, but that doesn’t mean you give up ... no, it means you
focus on other areas. The cost of a full page ad in a magazine
can create a well-made social media executed video campaign.
Today’s younger markets and emerging market thrives on video
and the convenience of electronic media.
Can anything replace the tangible feel of a powersports
magazine on the coffee table? I don’t personally believe so, but
it’s not about me ... it’s about return on investment.
A great site, prominent presence on social media to include
Facebook, Twitter and YouTube and the notion that they are
going to get exposure in the magazine anyway would have them
tie their checkbooks shut.
— Shop Talk forum member Vonconcepts
10
DEALERNEWS.COM
JANUARY 2012
Join a discussion on our blog
at: dealernewsblog.com
Join the dealer community at:
dealernews.com/shoptalk
ON DEALERNEWS.COM
Readers respond to “Sacramento jury
Visit us online at:
dealernews.com
FAIRNESS? How in the world
does one legislate fairness? In
the end, “fairness” only makes
things worse. Over 50 years
ago, Ayn Rand’s book, “Atlas
Shrugged” was released. It was
supposed to be a warning, not an
instruction manual. In the book,
the government was constantly
passing legislation to eliminate the
“dog-eat-dog” mentality of those
who actually produced goods of
value to society, the idea put forth
by the “progressives” (more like
“repressives”) was to help the little
guy have an even chance. Well,
just like real life, the ones who
were unable to succeed, still didn’t
succeed with all the help. In the
end, the nation is destroyed by the
“progressives.” The same thing ap-
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plies here. There are retailers who
will do fine in spite of the Internet
because frankly, they kick ass on
service. Yes, they may lose some
sales, but they have enough to
keep busy and they will still build
a customer base. Everybody who
has spent lots of time crying a river
about losses probably deserved
them. Everyone loses sales for a
variety of reasons, so get out there
and drum up new ones. Frankly,
the real problem is those states
that will not control their abuse of
the power to tax. We are based in
California, we have this discussion
frequently: When do we throw
in the towel and move to AZ or
TX? The Commerce Clause is very
clear, the courts agreed in the Quill
case. When we weaken the Constitution just to appease those who
think they are entitled, then we
are throwing out the memory of
the men and women who for over
two centuries risked and gave their
lives so that we have the freedom
to have this conversation.
— Kenny B., Azuza, Calif.
A reader responds to “Two motorcycles stolen from Hatfield-McCoy
Powersports recovered, police seeking more”
They used to hang horse thieves,
right? Seems like a good policy to
me. Go get ‘em.
— J.G. Adams,
Mount Washington, N.H.
VISIT US AT
DEALER EXPO
2012
NEW DISTRIBUTOR, NEW MODELS, NEW COLORS
BETTER SERVICES, BETTER SUPPORT, BETTER PRICING
....SAME GREAT QUALITY
To join our dealer network
call 951.361.9000 or visit alliancepowersports.com
5
QUESTIONS — SCOTT HOLBROOKS
S
cott Holbrooks is a powersports industry veteran who’s been on two
wheels since his dad gave him a Yamaha XS400 for his 16th birthday. He
got his start at Top 100 dealer and 2011 Dealer of the Year, Iron Pony, in
1988 before moving into the wholesale side of the business. After stints at
Tucker Rocky, Motorcycle Stuff and Fulmer Helmets, Holbrooks has returned to the
Westerville, Ohio, store he once called home, as brand director for Iron Pony Motorsports and Pony Powersports. We talked to Holbrooks about making the transition.
DEALERNEWS: How does it feel to be
back on the front lines of retail?
SCOTT HOLBROOKS: Excited! I really enjoyed the 20 years working on the wholesale
side of the business, and wouldn’t trade that
experience for the world, but I did miss the
direct interaction with the retail customer. I
didn’t know how much until I spent several
years attending the International Motorcycle
Shows gathering market research for my
previous employer. I love the passion people
have for motorcycling, the look they get in
their eyes, the excitement in their voice. It
reminds me of why I got into this business
in the first place. It is all too easy to try to
reduce it down to numbers. In reality that is
a recipe for disaster and it is very easy to fall
into that line of thinking in wholesale.
There is no need for motorcycles, at least
in this country. It is all about wants and
desires, and the best place to understand
what really drives people is [to have] direct
contact with them. In wholesale, you can poll
your dealers, talk to your sales people, create
focus groups, and mine the internet forums
— these are all great ways to discover what
people want — but each has huge flaws and
the information gathered is suspect, especially when applied to the aforementioned
“numbers” process. Nothing beats face-toface interaction and the guts to act upon your
findings. When the opportunity came up I
jumped at the chance to rejoin the team
DN: Any advice for those thinking of
changing from wholesale to retail?
HOLBROOKS: There are lots of clues on
the wholesale side that things have wildly
changed at the retail level, but it’s hard to
grasp until you see it in action. It isn’t the
change itself — this is easy to comprehend.
The challenge is that it now seems to be a
continually moving and evolving target. We
know that women are now a large percent
of the retail customer base, but the effect
in the store is really surprising. Twenty years
ago, it was not uncommon for women to sit
in the car and wait while their husband came
into the store. I would say women are now
35 percent or more of our customer base.
It’s getting more and more common to see
women introducing men to motorcycling.
E-commerce now plays a huge role in how
we market to the consumer. Additionally,
social media means that our relationships
with our customers are less personal, but it
is increasingly easier to immediately connect
with them. I can send out an email blast or
share something on Facebook and have all
our followers notified within seconds. Riders
are informed. Years ago they might read a
magazine article, listen to their buddies and
then to the salesperson before making a
buying decision. Now the rider can do this
all online from the comfort and convenience
of his or her home or office, pulling information from a myriad sources and coming to
a conclusion on their own without pressure
from a salesperson. The consumer, in a way,
becomes the “ultra expert” on whatever
product they are focused upon. It is not
always the case, but it is increasingly common
for the retailer to simply act as a facilitator
because the customer’s mind is completely
made up. In fact, you may lose the sale if you
try to push too hard in another direction.
DN: Any advice for dealers considering a
hire with an aftermarket pedigree?
HOLBROOKS: If you have room on your
staff, a person from the wholesale side is a
good addition. The different perspective
adds depth and knowledge and will enhance
your ability to develop a thorough strategy.
Industry connections made on the wholesale
side can be valuable. As in, “It isn’t what you
know, it’s who you know.” Sourcing, logistics
and large-scale strategic planning might
be valuable skills and are a big part of the
wholesale business. It also helps that a person
from the wholesale end of the business has
been exposed to the entire market and may
see trends and opportunities that might not
yet be a factor for the local retailer. By nature,
the wholesale person has been conditioned
to look a little further out, potentially making
them a valuable asset to your team.
DN: What can other dealers and shops
learn from a big dealer like Iron Pony?
HOLBROOKS: Iron Pony is led by owner
Chris Jones. His vision, determination and
guts set us above the rest. Strong, passionate leadership is needed in this industry.
Sure you can have a board and can lead by
committee, but the end-product will always
pale in comparison. For the first 30 years, Iron
Pony did not sell motorcycles, not even used
bikes — just parts, accessories and apparel.
Motorcyclists could choose to ignore us and
have their needs met by the local dealerships. Iron Pony realized they had to go an
extra step. They had to have a wide selection
of product in stock, have fair prices, be accessible and exceed people’s expectations.
The store created the want. Iron Pony has
mounted and balanced tires while customers
wait for the past 25-plus years. It makes a
huge difference. For many people, dropping
off their bikes and waiting, even 24 hours, is
very inconvenient. Iron Pony is open seven
days a week, even service, and has been doing so for 25-plus years. You need to be open
when people want to shop and spend money.
The majority of Americans have Sunday off.
Why on earth would you be closed? The bigbox stores tout value and selection to their
customers, but in reality, convenience plays
an enormous role.
DN: What can we expect from Iron Pony —
the 2011 Dealer of the Year — in 2012?
HOLBROOKS: There are a many surprises up
our sleeve that we can’t divulge. What I can
say; we plan to do more of the same. Why
upset the apple cart? We (Pony Powersports,
Iron Pony’s sister company) added a Suzuki
franchise at the end of 2011 based upon an
opportunity and our customers’ wishes. We
will continue to go in that direction. Additionally, our marketing plan will solidify Iron Pony
as a destination location, welcoming visitors
from all over the U.S. There will be new
divisions launched with a focus on creating
new motorcyclists. We think everyone should
enjoy riding motorcycles. Motorcycling has
deep roots in Ohio. We are working with civic
leaders to establish Ohio as a riding mecca
with incredible roads, wonderful trails and
warm, motorcycle-friendly, hospitality.
JANUARY 2012 DEALERNEWS.COM
13
October 2011 — dealership
makes further gains
NET INCOME UP $15,190; USED SALES JUMP
BY JOE DELMONT
EDITOR’S NOTE: The Dealer Lab project is a joint effort between Dealernews and PowerHouse Dealer Services, a consulting firm run by former dealer Bill
Shenk, detailing his efforts to return Florida Motorsports to profitability. When he took over management of the two stores — located in Naples and Punta
Gorda, Fla., — in July 2009, the Punta Gorda store had been losing money. Shenk and a partner have purchased the Punta Gorda store and renamed it
Destination Powersports. Shenk no longer is involved in the Naples location.
The financial information in this report is taken from the dealership’s Composite Report supplied by Shenk and is prepared as part of the dealership’s
participation in the PowerHouse Dealer 20-Group. The Composite Report is produced from the store’s monthly financial report. In preparing these Dealer
Lab reports, Dealernews reviews the dealership’s unaudited P&L statement and Balance Sheet and its Composite Report.
THE NET INCOME for October posted by
Destination Powersports of Punta Gorda, Fla.,
our Dealer Lab dealership, increased strongly
over October 2010, but the dealership’s
overall profitability continued to be held back
by the sluggish performance of the sales
department. Total dealership profitability hit
$12,606 for the month, up from $1,941 in
October 2010, and $2,594 last month.
However, the sales department (without
F&I) contributed a loss of $4,775 to overall
dealership net income on a gross profit
of $34,277 for the department. That’s an
improvement over October 2010 when the
sales department recorded a gross profit
of $30,347, but had a departmental loss of
$13,871.
Sales of major units in October were
about flat with last year: 35 units this year,
compared to 34 major units in October 2010.
Year-to-date, through October, however, unit
sales revenues were $3,005,168, up 43 percent from last year’s figure of $2,091,391.
While the total unit sales of motorcycles in
October were about flat, year-over-year, at 30
units this year compared to 28 units in October 2010, the change in year-to-date figures
of used motorcycles is startling. Last year, the
dealership sold 75 used motorcycles through
October. This year, that number jumped to
120 units, an increase of 60 percent, partly
because owner Bill Shenk had increased
capital to buy more used machines. Sales
of new motorcycles were about the same,
increasing by two units from 111 last year to
113 this year.
The dealership’s inventory of used motorcycles in October was bulked up considerably
over what it had available in October 2010.
This year, the dealership had 39 used motorcycles available in October, compared to only
10 at the same time last year.
This year, Shenk has been able to get
$100,000 more to purchase used machines
than he had last year. “We still don’t have
enough different types of used units to
properly cover the local used marketplace,
though,” he says. “Consequently, we still are
CONTRIBUTION TO OCTOBER PROFIT
$12,000
losing profit opportunities.”
Most of the dealership’s used inventory
growth comes from making calls to private
sellers. In October, the dealership began setting up a program to buy through Manheim
Specialty Auctions, but available funds will
still be a limiting factor here.
The total inventory of new and used machines at the dealership in October this year
was 255 units, with a value of $1.9 million, a
substantial increase over the 137 units with
a value of $980,000 that it held in October
last year.
Inventory is up this year for several reasons:
1. Kawasaki is having the dealers warehouse their units.
2. Dealership was too low on Suzuki inventory last year.
3. This year, dealership had the ability to
add $175,000 more in used units.
4. Dealership added both Polaris and Victory products this year.
For its performance year-over-year
through October, the dealership continues
ROLLING EARNINGS
Month
12 Months
$200,000
$10,000
$8,000
$10,128
$6,000
$150,000
$8,670
$100,000
$4,000
$2,000
$483
$50,000
0
–$2,000
–$4,775
0
–$4,000
–$6,000
–$18,300
–$50,000
Sales
F&I
PG&A
SVC
The Dealer Lab is a real-world service from
14
DEALERNEWS.COM
JANUARY 2012
Nov Dec Jan
Feb Mar Apr May Jun
July Aug Sept Oct
Month-Over-Month Comparisons and YTD Totals: October 2011
SALES
Units Sold (New & Used)
Sales
F&I (net)
Parts
Accessories
Service
Total Sales
Total Cost of Sales
Gross Profit
% of Total
Dollars
% of Total Dollars
Oct-11
40
293,656
12,472
21,344
35,674
28,340
391,486
297,070
94,416
EXPENSES
Dealer
Top Gun
75
3.2
5.5
9.1
7.2
100*
75.9
24.1
71
4
7
10
8
100*
73
27
Oct-10
34
252,712
18,201
14,241
26,299
20,733
332,186
250,704
81,482
Dealer
76.1
5.5
4.3
7.9
6.2
100*
75.5
24.5
% of Total Dollars
Sept-11
34
242,974
12,758
24,630
27,814
28,994
337,170
256,577
80,593
YTD 2010
314
2,091,391
129,709
270,743
206,447
253,348
2,951,638
2,118,169
833,469
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 Profit
% of Dept. Gross Profit
PVS
DLR
7,846
386
651
877
903
10,664
7,838
2,825
73.6
3.6
6.1
8.2
8.5
100*
73.5
26.5
% of Dept Gross Profit
Oct-11
Dealer
Top Gun
Oct-10
Dealer
Sept-11
YTD 2010
YTD 2011
PVS
DLR
Payroll
Total Sales (5.25/4.0 Empl) 15,668
Total P&A (2.20/2.5 Empl)
7,536
Total Service 4.50/5.00 Empl) 14,694
Flooring
2,718
33.5
37.1
51.8
5.8
36
44
53
10
19,177
6,058
12,152
7,427
39.5
43.9
59.0
15.3
12,530
6,600
15,349
2,056
186,204
71,330
162,626
86,432
184,662
75,569
187,031
27,146
482
197
488
71
34.1
37.7
54.1
5
6,719
7,939
12,210
13,207
1,850
78,460
0
66,744
38,588
144,135
114,597
19,281
889,937
498
65,923
56,837
164,018
131,222
20,847
913,255
0
451
2,584
2,584
11,996
-44,970
-44,970
–4,446
164,360
164,359
% of Dept
Gross Profit
% of Dept. Gross Profit
Admin Payroll
Advertising
Administration
Rent
Co. insurance
Total Expense
Misc. Expense
6,212
5,121
14,372
12,614
1,978
80,913
0
6.6
5.4
15.2
13.4
2.1
85.7
0
6
5
17
11
3
90
2
6,220
4,673
13,388
10,257
1,494
80,846
–897
12,606
12,606
0
3.2
3.2
0
3
3.3
% of Dept Gross Profit
% of Total
Dollars
% of Total Dollars
Additional Income
Net Profit
Net Profit + Misc Exp
7.6
5.7
16.4
12.6
1.8
99.2
1,305
1,941
1,941
0
0.6
0.6
172
148
428
343
54
2,384
0
6.1
5.3
15.2
12.1
1.9
84.4
0
% of Total Dollars
–12
429
429
–0.1
4.0
4
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.
to operate well ahead of the first 10 months
of 2010. Year–to-date, the dealership has a
net income of $164,360, up from a loss of
$44,970 for the same period last year.
(It is important to note that January 2010
was the coldest in 40 years, with snow, and on
Feb.14 the store closed for about a month. If
you remove those two months the gap narrows to 2010, just hitting YTD profit of $4,137.)
That’s a gain of $209,330 in profitability
over the same 10-month period as last year.
Total sales for the 10 months this year
were $4,064,170, up 37 percent from the
$2,951,638 recorded in the same period last
year. And 2009 revenues were $2,356,105
with a loss of $233,921.
The total revenue increases this year are
partly the result of steps Shenk began taking
in 2009. Here is his analysis:
1. “If you have a poorly run business, you
must fix the processes first. Bad business
practices bring bad customers. Good customers won’t put up with bad business, no
matter how low the prices.
2. “When you only have a small number of
customers and of those very few loyal customers (the ones that bring you profitable
business) it looks like this:
“You start with 200 customers. When
you add 50 new ones in a month, that is
a big percentage increase – 25 percent.
Now, months latter, if you are still adding 50
new customers a month and you now have
600 customers then the percentage gain is
smaller but the money still keeps going to
the profit line.
“In the second half of 2009 we were
getting rid of bad customers and replacing
them with good customers and better business practices.
“So, when you compare those first six to
nine months of 2009/2010 you don’t see a big
increase in gross dollars but you do see a huge
increase in profit. Remember, my big focus
was getting good customers through Parts and
Service that would turn into sales customers
down the road (bigger dollars). In 2010 to 2011,
we see the bigger dollars starting to come
in and we are getting more current inventory
that also attracts a better customer.
3. “There is no substitute for A players on
your team and A level systems. To win in the
new marketplace you must have both. We
started replacing C players and installing A
class systems and trying to find and retain
A players. C players can’t even follow the
processes, much less use them as a tool to
grow the business.”
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 industry since 1976, and
purchased his first dealership in 1987. He started
PowerHouse in 2000. He purchased the “Dealer
Lab” dealership to show the industry that even in
these extreme times, a failing dealership can be
turned around by using the proper best practices.
Eventually “Dealer Lab” will be used as a realworld training facility for PowerHouse clients
across the country. To join a PHD 20 Group and
take your dealership to Top Gun status, contact
Bill at 877-PHD-0911 or [email protected].
Read past reports and post comments at:
www.dealernews.com/dealerlab
alern
new
JANUARY 2012
DEALERNEWS.COM
15
MANAGEMENT
GOOD TIMES AND BAD, MARK MOSES HAS SEEN IT ALL
IN HIS JOURNEY WITH INDIAN MOTORCYCLES
by Bruce Steever • photography by Brett Flashnick
16
DEALERNEWS.COM
JANUARY 2012
by Bruce Steever • photos by Gary Rohman
Indian Motorcycles is a historic and storied
brand that has lived through boom times and downturns, all the while
following a fickle fate. No one knows this better than Mark Moses,
owner of North Carolina-based Indian Motorcycle Charlotte. Moses is a
zealous supporter of Indian Motorcycles as an enthusiast, an employee
of the brand itself, and as a dealer principal. “Passion” is certainly an
overused word in the powersports industry, but at the end of the day,
loving what you do in this industry will carry you and your business
through the worst (and best) days.
MANAGEMENT
Moses started as a motorcycle dealer when the opportunity arose
to turn his love of Indian motorcycles into a business. Already a successful business owner working in the specialty auto industry, Moses
saw an ideal fit. “I guess to start, my adventure with Indian has been
based really on an enthusiast hobby,” Moses says. “I’d done hot rods
and street rods and classic cars the bulk of my adult life, but Indian
motorcycles always have fascinated me, primarily because they’re
unique, they’re different. I’ve always wanted to do something that nobody else was doing. Then I started thinking, ‘man, this is something
I’d love to do for a living,’ even though I was already doing something
for a living that I loved: building cool cars.”
As an owner of pre-1998 machines, as well as a 1999 and a 2000 Indian, Moses appreciated the fact that Indian was in an awkward place
as the Gilroy-era court cases were taking place. Still, in early 2002 he
decided to proceed, and started talking with the then Indian Motorcycle CEO Frank O’Connell. At the same time, a fellow businessman
in the plastics industry began talks with Moses about the possibility
18
DEALERNEWS.COM
JANUARY 2012
of building the new Indian business into something far larger than
originally planned.
“I started [at] a small temporary facility outside of Toledo, Ohio,
and then started building a standalone, purpose-built dealership with
the intention of managing both my auto and motorcycle businesses
at the same time,” Moses explains. “We broke ground on what
would become Indian Motorcycle Toledo in April 2003. Despite the
temporary facility, I think we were the third largest volume [Indian]
dealer for 2003.”
Of course, students of Indian’s checkered history certainly would
cringe reading the timeline above, as eight weeks into the grand
opening of Moses’ Toledo dealership, Gilroy Indian closed its doors.
This is the kind of event that would throw most business owners for a
loop. Moses was not left unflustered, but he refused to throw in the
towel. “We rallied the troops with my partners as quickly as possible,”
he says. “When we got the call, we were on the way to Las Vegas for
the 2004 Indian dealer show. We were told not to go to Las Vegas be-
Did He REALLY Just Mention
AngryCustomer | May 21, 2008
RE
LINE
AL ON
REVIE
W
Like to be ignored? You could stand in the middle of
this place naked and do jumping jacks and it wouldn’t get you a bit of
attention from the numerous employees. They are too busy sitting on the couch, on
the motorcycles, and chatting with each other to bother with helping customers.
Whether they have a compliment or a complaint, the Internet
gives people a place to be heard by hundreds of thousands of
people . What ‘s being said about your dealership online?
Take control of your online reputation with Powersports
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825 Hwy 74 South, Suite 101 | Peachtree City, GA 30269
SCAN ME!
MANAGEMENT
cause the show was canceled. Obviously, there was chaos and confusion in the search to get more information. Finally, I got ahold of Frank
O’Connell, who told me what had happened. By the time we hit the
ground in Ohio, we had a tentative plan of what we were going to do.
We renamed the business and then reached out to two other brands.
Within 120 days of Indian closing, we had brought on Big Dog and
Triumph. We quickly morphed ourselves from an Indian-specialized
store into a multi-branded store.”
Unfortunately, North Coast Motorcycle, née Indian Motorcycle Toledo, had been designed from the ground up as an Indian franchise.
Beside the obvious changes to POP materials, displays and other marketing materials, entire sections of the dealership had to be adapted
to the new business plan. “Basically, what started happening then was
we concentrated on putting our heads down and doing business with
what we had, with the brands we had,” Moses explains. “But my passion had always been with my brand, with Indian. Indian wasn’t dead
to us, it was still warm and glowing, so we continued to talk about the
brand behind the scenes.”
While Moses was busy keeping his business going despite the
abrupt change of plans, Indian was in another phase of its very fluid
history. Despite talk about a purchase by Harley-Davidson, it was the
private investment group Stellican LTD. that stepped up to purchase
the beleaguered brand. Moses decided to follow his passion for the
Indian brand by joining with the new Indian motorcycles company to
help write the next chapter in the company’s long history. “By 2006,
Stellican had a plant in North Carolina, things were moving along,
and we had continued to talk,” Moses says. “But my investors did
not want to continue, so it was decided that we needed to do something different. Everybody had had enough. We shut the existing
operations down, by our own choice. Shortly thereafter, I was hired
“My passion had always been with Indian. Indian wasn’t dead to us, it was still
warm and glowing, so we continued to talk about the brand behind the scenes.”
by Indian personally.”
He moved his entire family to North Carolina, near the new Indian
facility in Kings Mountain. He was one of the first employees and wore
many hats — he was running marketing, events, technical services,
warranty services, you name it. He also worked on the design and build
of the flagship Indian retail store near the plant. “I was on the build site
each and every day as the project manager. The intent was to sell the
store to someone, and have them own and run it. But as we continued
to talk, it was decided that I would buy it,” Moses says. “I resigned
from Indian Motorcycle and bought the store.”
At this point, Moses and Indian had danced with each other in a full
circle to end up with the new Indian Motorcycle Charlotte. However,
Moses found himself in the perfect position as the new dealership
brought him in contact with Indian customers and still allowed him to
play an important role in the re-emerging Indian motorcycles brand. In
short, it allowed him the opportunity to fuel his passion for the marque
and use that passion to help grow his brand.
“Getting back into the retail side of the business was the farthest
thing from my mind. I wanted to play a role in the history of the brand,
frankly. So I still continued to work the Indian corporate side as an adviser or consultant, thanks to my history and knowledge of the brand.
It was a role that I loved to play, as there weren’t many people in the
Kings Mountain enterprise had the knowledge and experience with
the brand and had done what I had done.”
Fast forward to the present state of Indian Motorcycle, and change
once again is the rule. Polaris’ purchase of the marque has pundits
20
DEALERNEWS.COM
JANUARY 2012
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Customers can also look to the store a for a big selection of “Gilroy era” Indian parts and accessories.
wondering where the brand will head next, but for Moses, this is just
another chapter in the history of Indian.
“I approach this whole thing a little differently than I think many do.
I think it’s my passion that pushes me into it all the time. I was lucky
enough to have had personal relationships with Ross Clifford, the new
managing director of Indian Motorcycle [under Polaris] as well as the
whole upper management crew. They’ve been in my store; we’ve
talked at great length. Most recently, they’ve put me on an advisory
board that talks regularly about new product development. I’ve been
tasked to put together what we call an advisory council that gathers
20 Kings Mountain-era owners together. Engineering and marketing
folks travel to meet with this council to talk about engine design and
new product design. It’s been great to have been able to keep my
hands-on involvement with my brand.”
As you might imagine, someone who loves Indian and works
directly with Polaris has plenty good to say about the future of the
historical brand. But don’t write it off as cheerleading — it’s Moses
the Indian enthusiast saying it, not Moses the business owner. “I think
Indian is absolutely in the best position it’s been in since the 1920s,”
Moses says. “There’s never been as good a time for the brand. I am
22
DEALERNEWS.COM
JANUARY 2012
convinced that the people at Polaris understand the power of this
brand and the significance of what it means not only for Indian, but
what it means for Polaris. You can’t purchase history, but you can certainly purchase an iconic brand. The association and affiliation with the
Indian brand will go a long way in the long term for everything that
Polaris is aiming to do. They are a brilliant company, and now they
have a world-class brand. And based upon the history of Indian and
what they’ve done in the past, it’s almost a natural flow and ebb back
to a diverse product offering. It’s a clean sheet of paper, and the future
is bright for new product development.”
One thing that you notice when talking with Moses is that his
enthusiasm is infectious, and he takes possession of his role in the
industry very personally. From comments about “his brand” to the
obvious leaps of faith he’s made with Indian, it is clear that Moses is
committed to his passion (there’s that word again). “I know we were
creating history as we worked with the brand,” Moses says. “It’s never
been just a job for me. I’ve never been motivated by how much
money I thought I could make. It was the sense of accomplishment
and playing a role within the team, in making history. It’s always been
more about my love.
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MANAGEMENT
GROWING WITH
THE BRAND
Throughout the whole sordid drama of
Indian Motorcycle’s recent history, Mark
Moses has not only kept his internal fire
burning brightly for the brand, but has
worked to provide continued service for
existing owners and support the brand
itself.
“When Polaris came on board, I was
eager to sit with them and share some of
the issues I had seen that might not have
been viewable from the conference table,
like the supply chain issues. After the
Gilroy era, the challenge was being able
to access the parts inventory. When the
production line closed, we stopped selling retail parts externally, keeping them
to service our customer’s product,” he
says. “The Kings Mountain operation was
focused on new product at the expense of
parts and service stock. But we managed
to stock the inventory needed to service
the various bikes on the road from 19992003 as well as the Kings Mountain bikes.
“The need to keep a large inventory
has been a challenge for a small business.
I was clear with Polaris to explain many of
these supply chain issues with them. I’m
not sure that this information was clear
to Polaris when they bought the brand. I
think they felt they would quickly be able
to relaunch the brand and keep building
bikes, but the shelves were empty, so that
was a bit of an issue.”
In addition to being a leading parts and
service provider for older Indians, Moses
has made the most of conventional tools
available to every dealer to thrive in the
tough marketplace of today.
“We wear a lot of hats and keep our expenses low. We were also able to get into
e-commerce early, as the entire country
was our marketplace for Indian when we
started. Since then, I’ve looked for holes
in the brand’s coverage to help grow the
business. And when new dealers do fill
those holes, I did what I could to support
them, because I needed those guys to
help my business grow with Indian as a
whole,” he says. “But, the most important
thing is to make your brand your own,
know everything about your brand and
take ownership of your brand. The license
plate on my pickup truck is ‘INDN MAN.’
Bring in other products to support your
chosen brand, but make sure you have a
goal. My goal is to be the best anti-HarleyDavidson store, the best all-American
alternative.”
24
DEALERNEWS.COM
DEALER DATA
INDIAN MOTORCYCLE CHARLOTTE
110 Indian Walk, Lowell, NC 28098 (Charlotte) • 888-600-Indian (4634)
E-mail: [email protected] • www.IndianMotorcycleCharlotte.com
Owner and GM: Mark Moses
Number of Employees: 4 f/t, 1 p/t
Years in Business: 3.5
Years at Location: 3.5
Store Size (sq. ft.): 11,300
Annual Profits: $2 million
Profit per sq.ft.: $4.25
DMS: LightspeedNXT
Hours of Operation:
Tuesday – Friday: 9 a.m. to 6 p.m.
Saturday: 9 a.m. to 5 p.m.
SALES DEPARTMENT
Manager: Mark Moses
F&I and Accounting manager:
Rose Mary Duffin
Employees: 1.5
Showroom Size (sq. ft.): 5,200
PARTS DEPARTMENT
Manager: Mike Steranko
Employees: 1
Size (sq. ft.): 2,800
OTHER
Distributors: Indian, Tucker Rocky
Club Sponsorships: Indian Riders Group,
Iron Indian Riders, Indian Motorcycle Club,
All American Indian Motorcycle Club, Antique Motorcycle Club of America, Patriot
Guard Riders
Community Involvement: Trail of Tears
Sponsor, Patriot Guard Rider Participant,
Marine Corps Supporter, Sons of Soldiers
supporter.
CUSTOMER DEMOGRAPHICS
GENDER:
Women: 6% Men: 94%
AGE:
Over 40: 90% 18 – 39: 10%
(Median Age: 46)
ECOMMERCE DEPARTMENT
Manager: Mark Moses
2010 Income by Department
JANUARY 2012
SERVICE DEPARTMENT
Manager: Mike Steranko
Technician: Will Wagoner
Lifts: 4
Size (sq. ft.): 3,000
Shop Rate: $90 per hour
2010 Advertising Budget
11% Used Units
90% Internet
5% Service
19% Parts &
Accessories
2% F&I
63% New Units
5% Direct Mail
5% Social Media
SALES
New Products
Cycra skid plates protect frames
from dirt damage
From Cycra Racing
g comes
Speed Armor high-impact skid plates,,
which protect
dirtbike motors and
d
lower frame rails
from damage while
e
riding. Plates are made
of injection-molded
d plastic,
which still allows the
he frame to
move and flex, something
mething regular
aluminum plates don’t
on’t normally allow. The
skid plates also are
e about half the cost of ttheir
heir aluminum counterparts.
Installation is easy with the included tie
tie-down
e down straps and molded
e-down
lower frame tongues.
Contact: Cycra Racing, 800-770-2259, www.cycraracing.com.
w.cycraracing.com.
Steel brace strengthens
Commander’s mounting
surface
Holz Racing Products has just released an
upgrade for the Can-Am Commander 800 and
1000: The steering rack chassis brace. This brace
provides a sturdy, rigid mounting surface for the
steering rack, the company says, which prevents
flexing at the critical location where the steering
rack and the front chassis meet. The brace is
made of laser-cut chromoly steel, and comes in a
black powder coat finish.
Contact: Holz Racing Products, 360-398-7006,
www.holzracingproducts.com.
LeoVince fine-tunes performance
rformance
with FAST II
LeoVince USA’s FAST II is a single-unit fuel and ignition
system that conveniently houses fuel and ignition
gnition
adjustment capabilities in one place. Basic models
come with three pre-loaded exhaust-specifi
ficc
maps, a model-specific wiring harness, instalallation hardware, the FAST II software, and
instructional CD. Other options include a
Lambda eliminator or sensor emulator, handledlebar-mounted switch with LED position indicator,
cator,
and a FAST II quick shifter.
The system works with any exhaust, but is best with
LeoVince slip-ons and full systems, the company
mpany says.
Contact: LeoVince USA, 510-232-4040, www.leovinceusa.com.
ww.leovinceusa.com.
Terry Components releases fuel
management system
From Terry Components comes the Terminal Velocity III fuel managementt system.
t
Th
The setup
t iis d
designed
i
d tto iincrease h
horsepower and
d
torque in Harley-Davidsons when used with a performance exhaust
and air cleaner. The system can self-learn to adjust the fuel and air
mixture as the bike is ridden, compensating for changes in engine
load conditions, the company says. The system also can re-calibrate
for mods made on the bike.
Contact: Drag Specialties, www.dragspecialties.com.
26
DEALERNEWS.COM
JANUARY 2012
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Don’t miss the world’s
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SALES — PRODUCTS
Kuryakyn Chrome
Crusher combines looks with
performance
Kuryakyn’s Chrome Crusher Power Cell is made for
Harley-Davidson Softails from 1986 to 2011. The 2-into1-into-2 exhaust system was designed by Mike Roland,
and is part of the company’s award-winning Perfect
Storm Package. The exhaust provides upgraded sound,
performance and style to the Softail.
Contact: Kuryakyn, 866-277-9598, www.kuryakyn.com.
Giann
Giannelli
releases upgraded
scooter exhaust
scoote
The popular
popul Shot V2 silencer from Giannelli Silencers SpA
has just received
re
an upgrade. The Shot V3 is made of
carbon fiber,
b as opposed to the anodized aluminum construction of the Shot V2. The pipe helps to increase
struc
torque output at low and mid ranges.
to
C
Contact:
Giannelli Silencers SpA,
+39-075-861081, www.giannelli.com.
B
Bel-Ray
offers
engine oil for
en
A
ATVs
Be
Bel-Ray’s
ATV Trail Mineral
4T engine oil is a premium,
multi-grade oil that meets the
mu
demands of all four-stroke ATVs,
de
quads and UTVs. It contains
qu
the company’s Rust Defense
System (RDS), which helps ward
Sys
off corrosion, especially during
off-season while the vehicle is in
off
storage. The engine oil also resto
duces valve-train wear and helps
du
keep pistons and rings from
kee
scuffing. Available in one- and
scu
four-liter bottles.
fou
Contact: Bel-Ray Company,
Co
732-938-2421,
732
www.belray.com.
ww
28
DEALERNEWS.COM
JANUARY 2012
Pro-Tec releases Can-Am
high-flow airbox lid
Pro-Tec’s high-flow Moflow airbox lid is made for
the 2012 Can-Am DS450X and DS450XC ATVs. It is
designed to increase intake airflow while reducing
intake restriction. The lid features a water-repellent
filter, and is made of laser-cut aluminum, and is anodized in black to better match the vehicle.
Contact: Pro-Tec, 888-698-8990, www.pro-tec.us.
Progressive Suspension Softail shocks
offer RAP technology
Progressive Suspension now offers Harley-Davidson Softail shocks that
come equipped with Remote Adjustable Preload (RAP) technology,
which allows users to tune shocks without having to reach under the
bike’s frame, where the shocks are hidden.
The RAP system is placed behind the left passenger peg. With a
click of the knob, one can tune shocks remotely.
Contact: Progressive Suspension, 877-690-7411,
www.progressivesuspension.com.
Vance and Hines
goes minimalist
with R6 exhaust
The CS One Urban Brawler slip-on exhaust
from Vance and Hines is designed in
minimalist fashion to add an additional
edge-factor to the Yamaha R6. The exhaust
features a dual-tip design, cat-back fitment
and a delivers a throaty growl at a moderate sound level, the company says. The
exhaust is available in a matte black finish,
and with or without optional inserts.
Contact: Vance and Hines, 562-921-7461,
www.vanceandhines.com.
SKF fork seals optimize trial
and enduro bikes
SKF now has fork seal kits for trial and enduro bikes.
The kits include an oil seal and dirt scraper, which
optimize the front fork set-ups, the company says. Kits
help ensure low friction, the limit air suction and allow
for consistent hydraulic performance.
Contact: CSR Suspension, 812-346-8620,
www.csrsuspension.com.
JANUARY 2012
DEALERNEWS.COM
29
S A L E S : V- T W I N A F T E R M A R K E T F E AT U R E S
MOTORCYCLES,
when stock and from the factory, can be singular, inanimate machines.
When idle, they hum with potential horsepower and torque, some with forms that suggest motion and grace. Though simply a collection of parts, engineering, and (usually) beautiful design, it’s when machine is met by man that they come alive — with upgraded exhausts, new wheels, and other finishing touches. And to this we say, all hail the aftermarket.
The V-Twin world thrives on the strength of the aftermarket. This is where the gearheads, diehards and entrepreneurs produce
the products that make motorcycles personal. At the American V-Twin Dealer Show and Dealer Expo in Indy, there are hundreds
of exhibitors offering products and services that help your customers ride their own rides. Helmets, gear and apparel. Oil, big-bore
kits and brake calipers. Seats, boots and wheels. You name the product, you’ll find it. In this section, we highlight just a handful
vendors appearing at the American V-Twin Dealer Show.
Custom Chrome returns to Indy
AFTER A LONG absence from Indy, Custom
Chrome’s familiar five-sided dome returns
to the showroom floor next month. The
distributor was one of the first companies
to sign up as an anchor tenant for the
American V-Twin Dealer Show.
“This will be our primary focus for the
dealer network in 2012, and then we’ll
also attend several consumer shows,” says
Gerry Bruce, VP of operations.
Custom Chrome will not host a dealer
show as it has done the past two years.
“We had to make a decision, and we
decided to concentrate our efforts in the
Indy show,” Bruce says. “We like the way
they have promoted the V-twin portion of
their show and expect that to reflect in the
attendance.”
Bruce was promoted to his leadership
30
DEALERNEWS.COM
role in November after working at Custom
Chrome for seven years, most recently as
manager of the national road force. He
reports to K.C. Cho, who recently replaced
Holger Mohr as president and CEO.
Originally from South Korea, Cho has been
stationed at Custom Chrome’s California
headquarters ever since RevTech engine
maker Dae-il Corp. bought the distributor
in 2008.
Bruce looks forward to meeting with
dealers at the show. “Any time we’re going through changes, they’re going to be
curious,” he says. “We’re definitely going
to be a viable distributor in 2012 and move
forward.”
Custom Chrome’s dome booth will
encompass a 1,200 sq. ft. space holding several product kiosks and custom
JANUARY 2012
motorcycles. Dealers will see the latest
from house brands RevTech, Santee, Motor
Factory and Jammer Cycle Products.
Also on display will be many products
from other V-twin brands. Custom Chrome
now offers more than 200 vendors and
more than 15,000 SKUs. Three warehouses
in California, Missouri and Pennsylvania
offer next-day service to a majority of the
country.
Parent company Dae-il USA is further
bolstered by a strong international business, most notably from Germany-based
Custom Chrome Europe. “They’re still
growing and are a substantial part of our
company,” Bruce notes.
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tickets. Through our national and regional web, print, social media, email and radio promotional
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Avon Grips shows just who’s the boss
HOW DOES AVON GRIPS LEAP INTO THE NEWLY LAUNCHED AMERICAN V-TWIN
DEALER SHOW IN INDY? WITH A FLOURISH.
THE GRIP MANUFACTURER is highlighting its new Boss Performance grip, what company president Dave Kelly calls the most
revolutionary and ergonomic motorcycle grip on the market. The
grip’s Coke-bottle shape also acts as a built-in throttle assist.
Available only for Harley-Davidson models — both push-pull and
fly-by-wire throttles — the Boss could find its way into the metric
market if sales are strong, Kelly says. The grips are available in mul-
tiple finishes. The company also has free POP countertop displays
available for dealers, which allow customers to get up close and
personal with the grips.
“We’re a rubber molding company,” Kelly says. “What we pride
ourselves on is making comfortable products that are as ergonomically [correct] as a handlebar will allow us to be, and keep some
cool, up-to-date designs.”
Belt Drives Ltd. puts the brakes on baggers
HIGH PERFORMANCE CALIPERS, HUGE LINE OF REPLACEMENT BELTS, PART
OF BDL’S OFFERINGS
IT’S NO SECRET that baggers and touring bikes are the current
flavors of the cruiser space. Just take a look at the OEM offerings
over the past year or two and it’s apparent that when riders are hitting the road, they’re doing so fully loaded.
For 2012, Belt Drives Ltd. is aiming at the bagger market starting with its new GMA 500 Series Calipers designed specifically for
2008-2012 Harley-Davidson touring models. The high-performance
calipers are CNC-machined and assembled at the BDL factory, and
come in a black or chrome finish.
The new calipers, along with the company’s extensive lineup of
open and closed belt drives, clutches and other parts will on display
at the American V-twin Dealer Show booth in Indy, says company
president Steven Yetzke. Along with the bagger products, the company is also promoting its full line of replacement belts, Yetzke says.
With more people keeping their bikes for longer and the drop-off of
the custom bike building market, the replacement parts side of the
business is strong, he adds.
32
DEALERNEWS.COM
JANUARY 2012
Danny Gray, Airhawk partnership brings
revolutionary seat to market
IN EARLY 2011, seat manufacturer Danny
Gray and Airhawk Comfort Seating Products
entered into a partnership that resulted in
an innovative new seat design that riders —
especially those of the Iron Butt fraternity
— can appreciate.
“Motorcycling is all about the riding
experience,” says Lars Roulund, CEO of
Danny Gray and High End Seating Solutions. “Yet the interface that integrates you
into the motorcycle sucks. So the thing that
makes you a part of the motorcycle and a
part of the experience gives you pain after
100 miles. We’re always looking for ways to
increase the ride-ability of the seat.”
The new touring seats fuse together Danny Gray’s design with Airhawk’s air pocket
technology, which has been utilized in the
medical industry for well over 40 years.
The FDA-approved technology is used in
wheelchair applications, as well as to help
bedridden patients get relief from bedsores,
Roulund says. “We have medical proof that
this is a working product.”
The comfort system features air cells
about a half-inch thick, which are strategically integrated within the seats
in order to dissipate
pressure, as well
as absorb any
bumps felt
while on the
road. The seats
are adjustable, with
a little side pump and
release valve that add to
the comfort. “After riding for
long periods of time, people want
to move their [riding] positions up, down,
back or forward,” Roulund says. “With just a
few hits of the pump, they can change their
riding positions.”
Through
extensive
research, the
company also
found that positioning the rider lower in the
saddle increases comfort. “This
gives you a better riding position,” Roulund says. “People think that when you’re
lower, the seat isn’t going to be comfortable. They think, if there’s more padding,
there’s more comfort. This is not the truth.”
concentrate on the essentials
to achieve sales success
www.rizoma.com e-mail: [email protected]
34
DEALERNEWS.COM
JANUARY 2012
Cycle Visions ready to
debut new bolt-on products
You can test the seats out for yourself
next month: At both Dealer Expo and the
American V-Twin Dealer Show, Danny Gray
will be showcasing new versions of the air
seat. Dubbed the Long Haul 2UpXL, the
seats are available for Harley-Davidson
touring models, but plans on the horizon
include expanding into other markets,
including that of the sportbike variety.
“We develop all of our products through
a gathering of information from the market. We listen to our customers,” Roulund
says. “We like to innovate new ideas that
haven’t been out there before on the
market. So this [Airhawk partnership] was a
strategically brilliant partnership for us.”
Danny Gray seats are available through
Drag Specialties. The company also offers
dealer-direct sales in the form of a customs
division. “Seats are sent to us from all over
the world [so we can] do one-off or highdollar custom work,” Roulund says.
THE MOTORCYCLE INDUSTRY has more than felt the impact of the economic malaise
of the past few years, with many manufacturers and shops making various degrees of
cutbacks and cost-savings measures.
Now, with signs of a recovery bubbling up here and there, many are ready to emerge
with new products and plans for moving forward, Cycle Visions’ founder Randy Aron is one
of those who figures it’s time to stop reeling back and strike forth. Aron says his company
will debut a handful of new products at the American V-Twin Dealer Show in Indy.
“When the craze was to build choppers, we were building a couple of choppers a
month, but we never lost sight of bolt-on products,” says Aron, whose San Diegobased company was built on a long lineup of bolt-on accessories, bag mounts and
other products.
Cycle Visions also features a service and repair shop, a portion of the business that
does brisk work with tire changes, service work, frame mods, wheel installs and some
custom bikes, Aron says.
One of the bigger sellers right now, he says, is his adaptor kits that allow customers to
install FLH saddlebags on Harley-Davidson Dynas, Softails and Sportsters, and mounting
kits for adding a fairing to a Dyna or a Softail.
It’s products like these, Aron says, that allow existing and newer generations of motorcyclists to customize their bikes and make what was once old new again. “Motorcycles aren’t
just going to disappear. Someone is going to be riding them,” he says. “They’ll have new
owners who will want to do something different to them.”
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Save Big With Promo Code: DLR2012
OUT OF COUPONS? Email IMS@superfill.com or call 310-857-7570.
Be sure to use promo code: DLR2012 when purchasing tickets online at www.motorcycleshows.com
35
S&S Cycle helps teach old hogs new tricks
For the last couple of years, S&S Cycle has concentrated
on products consumers could use to build their dream
bikes on a budget. The move is in response to the decrease in new bike sales and the increase in the number
of riders keeping their existing bikes on the road for
longer.
This year in Indy, the V-twin-centric company is sticking to this model with the debut of a series of air cleaners called the Stealth Air Cleaner, says Bruce Tessmer,
S&S Cycle’s marketing manager. The lineup includes a
high-performance Twin Cam application that allows a
biker to use his or her stock air cleaner cover. There are
also new covers for other applications, including a newly
designed teardrop cover and some that leave the filter
element expose.
Tessmer says the covers will look just as cool on a
stock Harley-Davidson as they would on a custom bike,
a bagger, a chopper or even a Sportster.
One of the company’s other major initiatives aimed at
customers looking to punch up their existing rides is the
Four Step program, which is a series of performance upgrades that
riders can do in steps, as their budget allows. Each step is designed
to complement each other by starting with simple mods and progressing to more technical work. The first step is adding a new mufflers and air cleaners, followed by new cams and pushrods and then
adding a big-bore kit, finally stepping up to CNC-ported heads.
This is basically a roadmap that helps walk the customer through
the hop-up process, and let’s them do it without swallowing a big bill
all at once, Tessmer explains. “People in this economic climate are
really careful on what they spend their money on,” he adds.
!
"""""""
7+(1(:7:,1&,7<
INTRODUCING THE AMERICAN V-TWIN DEALER SHOW
REGISTER AT VTWINSHOW.COM OR 800-556-3369
36
DEALERNEWS.COM
JANUARY 2012
‘New day’ dawning for Biker’s Choice
For the past year, the new leaders of Biker’s Choice have been aggressively revamping Tucker Rocky’s V-twin division with not only
edgier advertising, but logistical tweaks to increase fill rates. Dealers
will get a firsthand look at the changes next month at the American
V-Twin Dealer Show, where the distributor
will serve as an anchor tenant.
“Perfect timing” is how Hank Desjardins describes the new show within a
show, which allows Biker’s Choice to have
its own 30’x50’ booth far removed from
Tucker’s usual area. Desjardins became
Tucker Rocky’s VP of marketing this past
summer after working 21 years for Cycle
Gear, the powersports industry’s largest
retail chain.
Charlie Hadayia Jr. has been director of
business development for Biker’s Choice
since late 2010. An industry veteran
of 22 years, he spent the previous 12
years working for S&S Cycle. He’s been
busy recruiting new Biker’s Choice reps
(there’s now 15) and making the aforementioned changes to the distributor
founded in 1971 and bought by Tucker
Rocky in 1992.
“It’s a long-term process, but it’s a new day for Biker’s Choice,”
Desjardins says. “You’re going to see a completely different tone
and feel.”
Among the brands that will be on display at Indy: Drop-Tail Trailers,
Freedom Performance and Skid Lids. Twin
Power will be launching new battery and oil
lines. Rush Racing has expanded its portfolio to
include motorcycle seats. Kuryakyn has added
300 parts to the distributor’s catalog.
Also on display will be Xtreme wheels.
Biker’s Choice began stocking them after
Performance Machine bought Xtreme Machine
last summer. “And extreme they are,” Desjardins says. “There are some wild designs. Their
mellowest design is pretty off the hook.”
Select apparel items will be on hand from
River Road, Firstgear and Speed and Strength.
Dealers also will get a look at the latest
merchandising fixtures and even a couple of
custom motorcycles.
Desjardins’ boss, Tucker Rocky president
Steve Johnson, calls the V-twin market a
“growth part of our industry,” adding, “We’re
looking forward to it being a bigger part of our
business.”
37
Champion Trikes: two wheels good, three
wheels better
DEBUTS NEW KAWI TRIKE KIT, EXPANDED EZ-STEER APPLICATIONS
CHAMPION TRIKES may be one of the largest brands in the threewheel marketplace, but the company began over 20 years ago with a
simple idea of creating niche-focused accessories, such as complete
sidecar rigs and custom luggage. From the first generation “Escort”
sidecars and trailers, Champion soon expanded into trike kits and
trike-specific accessories.
Champion now builds trike conversions, parts and accessories for
a variety of bikes, including Honda, Harley-Davidson (see FLH kit in
picture), and Yamaha. Champion always brings a
strong presence to industry trade shows, and for
the American V-Twin Dealer Show, the company is
showcasing a new trike kit for the Kawasaki Voyager, complete with independent suspension, says
Bill Swift, Champion’s sales manager.
The company also will be highlighting new
applications for its Reverse Gear and EZ-Steer
upgrades, the latter being a complete triple tree
set designed to significantly reduce trail figures to
lighten steering. “This thing is designed specifically for our trikes to correct the trail,” Swift says.
“Not only does it make the bike more stable, it
also enhances the ride comfort.” The Champion
Reverse Gear adds a “true mechanical reverse” to
select models. Both are ideal for trike and sidecar
applications.
For news on Champion and listings of its entire
lineup of parts and trike conversions, check out
www.championtrikes.com.
TAW to display new Brembo caliper for Harleys
LAST YEAR, TAW PERFORMANCE had just
opened as a distributor of high-end sportbike
parts when it exhibited at Dealer Expo. This
year the company will have a second booth
at American V-Twin Dealer Show for its new
V-twin division, highlighted by a new Brembo
caliper for Harleys.
“We’ve been in negotiations for the last 18
months with Brembo, which supplies original
equipment on Harleys, and they are starting an aftermarket program,” says Wayne
Rodgers, president of TAW Performance. “A
lot of people in the past have taken Brembo
OE calipers and chromed them. But this is
going to be an official Brembo performance
upgrade for Harley V-twin bikes, and we have
the exclusive. We’ve chosen the V-Twin Show
as the launch pad.”
The distributor also carries Ferodo,
Goodridge (brake lines specific to Brembo),
Marchesini, Militant Moto, Motion Pro and
Scorpion Exhausts. Rodgers says his former
corporate career with Brembo and Ferodo
placed him in close contact with the V-twin
38
DEALERNEWS.COM
industry. “Although we’re
a new company, we carry
a lot of expertise and
years of experience,” he
claims.
Lending further credibility is a partnership
with D&D Exhausts,
which will help distribute
Brembo, Ferodo and
Marchesini products for
Harleys from its facility in
Fort Worth, Texas. This
will be in addition to
TAW Performance’s own
warehouses in Sonoma,
Calif., and Indianapolis.
TAW Performance also will launch a new
Scorpion sportbike exhaust at its Dealer
Expo booth. Altogether, the company offers
roughly 1,000 SKUs for Harleys and 6,000
SKUs for everything else.
The distributor requires no initial dealer
buy-in, has no minimum order amount, and
JANUARY 2012
enforces a strict MAP policy in regard to its
exclusive products. The company encourages
customers and prospects to call its technical
hot line. Tawperformance.com has detailed
product information and retail pricing, but
there’s no shopping cart, only a dealer
locator.
“We support the dealer,” Rodgers says.
“We’re very adamant about that.”
BUY
ACCESS SHOW FLOOR SAVINGS ON HUNDREDS OF HOT NEW V-TWIN PRODUCTS,
AND JOIN NPA’S ONSITE AUCTION OF 75 PRISTINE, PRE-OWNED
HARLEY-DAVIDSON MOTORCYCLES.
LEARN
GET REAL-WORLD SOLUTIONS TO MAKE YOUR V-TWIN BUSINESS
THE BEST IT CAN BE IN 3 SOLID DAYS OF SEMINARS AND TRAINING.
CONNECT
BE WHERE THE INDUSTRY IS IN AN ATMOSPHERE THAT CELEBRATES
THE V-TWIN COMMUNITY.
MARKETING
Nail your business basics for a 2012 boom
BIG BREAKTHROUGHS ARE GREAT, BUT IT’S THE LITTLE THINGS THAT COUNT
A former dealer
principal, Rod
Stuckey is the
founder and
president of
Dealership
University and
Powersports
Marketing.com.
Have a question
about marketing
best practices?
Contact him
via editors@
dealernews.com
On the
Web:
Stuckey and the team
at Dealership University are offering more
than 30 business and
retail seminars free for
dealers attending the
2012 Dealer Expo and
the 2012 American
V-Twin Dealer Show,
Feb. 17-19 in Indianapolis. To register,
visit www.dealerexpo.
com.
40
DEALERNEWS.COM
POPULAR CLOTHING RETAILER Gap announced
the planned closing of 189 U.S. locations by the end
of 2013, primarily due to the cut back on consumer
spending during the down economy. It’s no secret
the downturn in the market has created a significant
thinning of the herd with powersports dealers as well.
It seems like just yesterday our industry experienced
14 years of straight growth, 13 of which were doubledigit. In those times, many dealers could afford sloppiness, casualness, and even downright wastefulness
in their marketing and training initiatives.
This sloth never was smart, but was once affordable.
Those days are long gone.
Renowned economic forecaster and bestselling author Harry Dent Jr. just rolled out his latest book, “The
Great Crash Ahead.” In this release, Dent predicts that,
although Black Friday 2011 showed an increase over
last year, a forthcoming second dip in the market is
probable with greater severity than the first. The basis
of his prediction combines multiple factors, including
the current state of real estate, banking, demographics, and psychographics, which all build a logical basis
to substantiate his prediction.
Why would I share this seemingly negative perspective at the beginning of a new year? To force you to
take a detailed look at your dealership’s marketing
and training for 2012. I want to encourage you to be
resourceful this year. I challenge you to turn over every
rock in search of the answers to how the most successful dealers in the nation are making real profit —
despite the market, the weather or the economy.
With the potential for a continued reduction in consumer demand, the ongoing attrition of some dealers
is inevitable. But those with a granular attention to
detail, and heavy focus on training and marketing, will
have the opportunity for a record-setting year due to
reduced competition and increased performance.
There are really only four ways to grow your dealership’s business.
1. Increase the number of new prospects generated.
2. Improve the frequency of visits from existing
customers.
3. Boost the conversion rate of prospects to
customers.
4. Raise the average value of each customer.
Now let’s look at each of these a little closer. No. 1:
How can you increase your new prospects generated?
There are two great ways to generate more prospects.
I’ll give you a hint on the first one: It’s online.
Google Adwords (SEM), Google Places Optimization (GPO), Search Engine Optimization (SEO), Online
Reputation Management (ORM), and Social Media
Marketing (SMM) are all requirements for optimal
performance in the new economy, and are all key components of your strategy for driving online traffic. If you
JANUARY 2012
don’t already have a clear understanding on each of
these topics, you must attend Dealer Expo in February.
The second great strategy to acquire new prospects
is to rent sourced lists. These lists can be targeted to
go after people in your market area, who ride what
you sell, but have never been in your dealership
before. You can also source lists of your competitor’s
customers, thereby turning them into your customers.
No. 2. One way, if not the best way, to improve the
frequency of visits from existing customers is to host
events. Monthly events are a great excuse to market to
your customers on a consistent basis, which increases
traffic, creates loyalty, and makes your customers immune to offers from would-be competitors.
Have you created your evergreen monthly marketing calendar for 2012? Each month there is a holiday
you can hitch your wagon to so your message is
interesting, relevant, and compelling. “What Santa
Forgot,” “New Year,” “Mardi Gras,” “Bike Week,” and
“Spring Has Sprung” are all great themes to consider
for priming your pump.
No. 3 is conversion rate, also known as closing ratio.
If you have 400 showroom guests in a month with a
10 percent closing ratio, you’ve sold 40 bikes. With
the same 400 customers, if you have a professionally
trained staff and you boost your ratio to 20 percent,
you’ve sold 80 bikes with no additional overhead
(except commission). Multiply that by 12 months and it
equals real money. Are you consistently training each
of your staff members? Does everyone on your sales
team know how to properly greet customers, develop
rapport, interview and investigate wants and needs,
conduct value-building demonstrations, ask for the
sale, handle objections, close the sale and follow up?
Remember, training is a journey, not a destination.
No. 4: raise the value of each customer. If you process 2,000 parts tickets per month, and can raise the
value by $10 per ticket, that equals $20,000 per month
or $240,000 per year in additional revenue. Does your
P&A team have the right seasonal inventory mix in
stock? Do they come out from behind the counter and
suggest related add-ons? Are they merchandising your
store so every day looks like a Grand Opening?
While big dealership-operating breakthroughs
are desirable and hot new products are exciting,
they’re also scarce and elusive. However, finding
lots of little screws, each just a tiny bit loose, to
tighten can be done in just about any dealership.
It’s this granular attention to detail that builds a
recession-proof dealership. If you consider yourself
one of the resourceful dealers, and you’re looking
for answers to help you turn every day into a profit
opportunity, you’ll find what you’re looking for at
Dealer Expo this year. I look forward to seeing you
there!
!
"""""""
7+(1(:7:,1&,7<
INTRODUCING THE AMERICAN V-TWIN DEALER SHOW
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MARKETING
Tips for mastering the product shot
THESE BASIC PHOTOGRAPHY TIPS CAN HELP YOUR WEB SALES EFFORTS
by Cynthia Furey
You can achieve
quality photos
without
expensive
equipment just
by learning a
few tricks of the
trade.
JIMS USA photographer
J.T. Lapien photographs
certain products from an
above angle to create
depth. Photo courtesy
JIMS USA.
42
LATELY, WE’VE NOTICED that
many dealers are making good use
of manufacturer and OEM product
shots on their websites. And why
wouldn’t they? The shots are expertly taken and well-lit, depicting
said products in favorable fashions
that are designed to sell them.
But the problem with relying
on these photos is repetition—if
your competitors are selling the
same brands that your store carries,
chances are, most of them are
utilizing the very same photos that
grace your website, too. So if your
goal is to set yourself apart from
your competitors, you may want to
consider taking your own product
shots. And while having a cache of
photography equipment definitely
helps in achieving quality shots, you
still can achieve them if you learn a
few tricks of the trade.
Lucky for us, JIMS USA’s chief
photographer J.T. Lapien has
agreed to divulge some of these
tips:
Point and shoot shouldn’t
always mean “point and shoot.”
“People think, I can just grab a
camera, point and shoot at [the
object], and the camera will do all
of the work for
me,” Lapien
says. “They’ll
throw it on
auto, cross
their fingers,
and hope they
get a good
shot.” While
this may yield
a great shot
sometimes, he
says, actually
spending the
time to learn
how to use the different settings
of your camera will eliminate any
guesswork. One of the handy settings worth exploring is the Macro
mode, which allows one to take
close-up photographs. This can be
a blessing for those who want to
DEALERNEWS.COM JANUARY 2012
take product detail shots.
Check your megapixels. Are
your images a little pixelated?
You might need to amp up your
megapixels. “Typically, for product
shots, anything higher than five
megapixels is OK,” Lapien says.
“And if you really needed to — if
you’re not enlarging the image any
more than a 4x6 size, 3.2 megapixels can work.” Keep in mind if you
do plan to use your Web shots in
future print advertising, the higher
the megapixel count, the better.
When in doubt, shoot indoors.
“Indoor shots are probably the
best way to shoot products,” Lapien says, because you can control
more of the elements, like lighting. If you absolutely must shoot
outdoors, find a shady spot. “Make
sure your location doesn’t have
any reflections, and if it does, find
something to cover it, like a white
canvas of some kind,” he says.
Use a tripod. Sometimes, blurry
photos are more about user error
than camera or megapixel issues.
“People can tend to push the
button too hard, and it makes the
camera vibrate,” Lapien says. “And
that vibration will clearly be part of
the picture itself.” If you don’t have
a tripod, you still can prop your
camera on a stationary surface, and
set the timer, so that your shot can
be taken hands-free.
Presentation is key. Wires and
thin objects are tricky to photograph because they can look unruly
or flat, respectively. When photographing products with wires,
simple things like bundling them
with zip ties can neaten up a shot.
Lapien also suggests that photographing a product from above
rather than from its side can eliminate any stray shadows that could
“muddy” the final photograph. “So
it’s not too much of a 3D shot, it’s
more a of 2D shot, because you
really get to see the lines in the
product itself,” he says.
If there’s a product that would
benefit from more of a 3D shot,
Lapien suggests this: “If you’ve got
some awkward-shaped part, like a
Rubik’s Cube, don’t shoot it in a 2D
shape, so that it looks like a square.
Make it look 3D: Shoot from up
above, slightly to the right, at an
angle, so you can see more corners
and visible shapes. That provides a
bit more presentation.”
Also something to keep in mind:
The shot’s background needs to
be as uniform as possible. Having
clutter or other objects in the
background detracts from the main
event, so try a white background,
or neutral, one-color background.
Look into photo correcting
software. Programs like Photoshop, Photoshop Elements and
Lightroom are “vital tools to
have,” Lapien says. There are free,
downloadable programs you can
use, like GIMP and Photoscape, to
correct basic things like brightness,
color adjustment, and white balance.
Lapien recommends also working with the software bundles that
come included with your camera.
A word of caution, however: Just
because you have correcting software, doesn’t mean it’s an easy fix
for a bad shot. “People will think,
I can fix anything in Photoshop,”
Lapien says. “But that’s something
that’s going to nip you so fast it’s
not even funny. Make sure everything you do is the best you can do
with the camera before anything is
processed with the software.”
Use a light tent. For uniform
lighting, Lapien recommends the
inexpensive light tents. “The light
tent is basically a pop-up type
of thing, no bigger than a desk
drawer, and inside are three different lights,” he says. “You can put
your part or product in there, close
the tent, and through the ‘peek
door’ you take the photograph.”
Lapien recommends a light tent
when you’re photographing any
type of chrome part, so that there’s
minimal glare.
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VOL.
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68
A VA
S A
X
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BE THERE
MARKETING
Coyne Powersports decks the mall with
RZRs and Spyders
by Bruce Steever
On the Web:
For more information on
the Coyne Powersports
group and its Westfield
mall location, check out
www.cpgrider.com.
SHOPPERS STROLLING through
the Westfield Mall in Palm Desert,
Calif., (near Palm Springs, Calif.) this
holiday season may have noticed
a new storefront. In between the
usual mall retail shops, there was a
cleanly styled boutique bearing the
name of Coyne Powersports. Inside
on display was a small selection of
units such as a Polaris side-by-side, a
Can-Am Spyder, a selection of dirtbikes and streetbikes from Honda
and Yamaha, as well as helmets and
other accessories. One didn’t have
to be an industry expert to see that
the mall location worked. Spend
10 minutes inside, and you’d have
noticed an amazing amount of foot
traffic passing the small retail space.
“This is our second year at the
mall,” explained Jeremy Howe,
sales manager for Coyne Powersports, which has locations in the
Southern California cities of Indio,
Beaumont and El Centro. “The idea
came from the general manager at
our Beaumont location, Joe Rincon.
It was so successful during last year’s
holiday season that we kept it all the
way through the spring.”
The mall storefront proved to
be a sharp move, as it was not
only cheaper than more common
marketing or advertising venues,
but it delivered directly measurable
results. “We’ve seen an increase
in floor traffic of about 8 percent
according to our coupons that we
hand out there,” Howe claimed.
“Sales guys have more to follow
up with, as we are getting a solid
three to five leads a day. We’ve also
retailed five units directly from the
mall store, with countless leads still
working. Customers are generally
interested. If it isn’t a huge retail
44
bump, it still lets people know that
we’re in the area, and the mall store
generates customer awareness and
more retail traffic through the doors
of the main dealership.”
Of course, the end goal was more
than just sales, as the exposure to a
large variety of consumers — many
of whom were already in a “buying mood” thanks to the holidays
— was priceless. For Coyne, the
exposure is doubly important, as
the Indio location is a new expansion into the Coachella Valley for
the growing Coyne group. Howe
is quite happy with the end results
of the holiday endeavor. “It takes
some work getting permission from
the manufacturers and the DMV,”
Howe explained, “but if you can
find a location where rent is low and
exposure is high, it’s definitely worth
the effort.”
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SERVICE
What’s in it for your customers?
CONSUMERS TODAY WANT SERVICE BEFORE SALES, SO SAVE THE PITCH
FUEL FOR
THOUGHT
Dave Koshollek
teaches sales and
service classes for
dealers. Contact
him at dakoenter
[email protected],
or via editors@
dealernews.com.
On the
Web:
To read more about
House of HarleyDavidson’s legendary
events, visit www.
dealernews.com/
dealerevents.
46
DEALERNEWS.COM
ARE WE RELYING too much on slick marketing and
bountiful displays to attract the V-twin community?
Or, is a better recipe for success more about making
a personal connection?
Anyone who enters the V-twin world as a new rider
or new to the Harley-Davidson, Indian, Victory, American custom or metric cruiser brand is initially wowed
by the multitude of accessories available, the ease of
personalizing their bike and the mass of clothing that
shouts to the world, “I’m a V-twin rider!”
At some point though, the V-twin rider matures.
They become less excited about what the store has
to sell them and more focused on What’s In It For
Me? (WIIFM) House of Harley-Davidson in Milwaukee, Wis., understands this. The dealership grows
clientele annually by holding some of the best events
in town. Take its Cheap, Fast and Dirty show. The
event posters are collectible, the bands are exciting,
the food is good, the bike show is cool and the show
specials are worth the trip alone. More than that, HoH
employees ride with their customers and provide
plenty of personal attention on an ongoing basis.
If you want to expand sales in the V-twin market,
the focus should be on the personal connection your
store has with each customer. I’ve been to stores that
are gloriously stocked with motorcycles, accessories
and clothing. They are picture-perfect and, truthfully,
the data usually shows an increase in sales after a
store is configured to look like this.
My experience tells me the increase is primarily
caused by having stock on hand and by attracting
new V-twin riders, who buy more because they’re
easily impressed. Will that sizzle inspire repeat
business? For awhile sure. Then the “sales before
service” mentality becomes boring, and to some,
offensive.
An example of the successful “service before
sales” are Harley-Davidson Garage Parties. When
a Harley dealer holds a GP, attendees can expect
personalized attention, frank discussion with experienced female riders and an inviting atmosphere.
GPs have worked so well that Harley maintains a
strong lead over the rest of the motorcycle industry
in female ridership. The gals in attendance know the
GP is about them first, with sales second.
Then there’s the nonconforming Strokers Dallas,
which is a Victory and Royal Enfield dealership run by
well-known moto-celebrity (and Dealernews columnist) Rick Fairless. Rick’s store is a crazy chopper museum with personal touches that include hundreds
of pictures of Fairless and his family. Like a good
movie, it’s worth going back again and again to see
what was missed. Only half the stuff is for sale — the
rest is just fun memorabilia. Fairless also has his
Strokers Ice House bar and grill that attracts a lot of
JANUARY 2012
business. Mix in his tattoo parlor, Strokers Ink,
and his friendly staff, and you can’t help but feel
Strokers appreciates your visit, and your business,
too (in that order).
You see, the V-twin community is not a herd of
simpletons ready for slaughter using slick sales gimmicks. V-twin riders are maturing and they want more
out of their retail experience. They want value in
exchange for their time. Make it fun and make it beneficial or they will take their business elsewhere.
It’s unreasonable to believe all it takes is displaying expensive gear and accessories to motivate
customers to buy. Money is tight and customers
want to feel their dealership appreciates them. As
Dennis Johnson, Dealernews editor-in-chief, told me,
“Customers, I feel, want to be appreciated for giving
their business to a store/company. I know I do. When
I don’t feel that level of appreciation — something as
simple as the guy at Trader Joe’s knowing that I ride
and asking me about riding — I’d just as soon take
my money elsewhere.”
Connecting with the V-twin rider isn’t complicated.
Start by considering WIIFM from their perspective.
Some dealer best practices to consider:
• Hold customer appreciation events. Make them
extra special for your top 100 customers — those
who frequent the store often, assist during events,
are officers in the local club and who spend the
most on an annual basis. Wine and dine them like
the best customers they are.
• Train staff to greet customers with a smile and a
welcoming remark.
• Thank all customers for their purchases — be they
large or small.
• Follow up with customers who made a significant
purchase. Do so within 48 to 72 hours by phone,
email or text. Thank them for their purchase, get
feedback on the experience and personally invite
them to your next event.
• Create invitations that include an element of service, education, entertainment and/or special offers.
• Post pictures of staff along with bios so customers
know who they’re doing business with.
• Celebrate customers and employees who have
purchased a vehicle. Take pictures and create a
binder that other customers can look through.
• Ride with customers or, at least, mingle with them
at the start and end points.
• Capture customer testimonials and document
them with pictures to make it more interesting.
With today’s tight budgets, cultivating the
customer connection along with good product
merchandising makes more sense than ever. If the
customer’s WIIFM is the driving force, I don’t think
you can go wrong.
BEGIN
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Communications Inc, 131 West First St., Duluth, MN 55802-2065, USA.
SERVICE — TOOLS AND SHOP EQUIPMENT
George’s Garage offers three new
w
installation tools for Harley
George’s Garage now has three new tools to make installation of various parts easier on
Harley-Davidsons.
The large mainshaft seal installer (No. 620250) is made for 2006 to present-day Dynas,
and 2007 to present-day TC engines. The installer guarantees a leak-free seal with proper
depth and alignment, the company says. It’s to be used with the driver handle from
George’s small mainshaft seal installer.
The primary bearing remover and installer (No. 590070) is made for 1984-1986 FXST/
FLSTs, 1985-2006 FLT/FLHT/FXRs and all FXDWG models except for 2006 Dyna machines..
It allows for easier and more precise removal and installation of the primary case bearing
and seal.
The starter jackshaft seal installer and remover (No. 590020) is made for 1994-2006 big
g
twins (except for 2006 Dynas). The tool is able to slide through
hrough
g the new seal and into the
bushing, allowing users to tap it into place for a precision,
n, hassle-free fit, the company says.
sayys.
The tool’s handle also is designed for use in removing old
d sseals.
eals.
Contact: George’s Garage, 909-843-7043, www.georges
s-garage.com.
www.georges-garage.com.
Wiha introduces
MagicTip pliers
Montecito, Calif.-based company Wiha Premium Tools has released a line of safety pliers.
The MagicTip Safety Notched Ring Pliers feature precision-notched tips to firmly hold rings
in place. Tips are made of hardened CVM tool
steel, and handles feature soft vinyl grips for
comfort. The pliers come in a variety of sizes,
as well as a 90-degree angled style.
Contact: Wiha Premium Tools, 800-494-6104,
www.wihatools.com.
48
SERVICE — TOOLS AND SHOP EQUIPMENT
The slimmest filter
wrench the industry
has seen
JIMS USA has released what it touts as the slimmest oil filter wrench
that the industry has ever seen. Part No. 941 allows users to navigate
near a Harley-Davidson’s oil cooler and crankcase position center
much more easily than a regular oil filter wrench. The tool also allows
more space in which to work around exhaust pipes, frames, hoses and
brackets.
The oil filter wrench features a 3/8” square drive. The company says
it guarantees a good grip on any Harley-Davidson spin-on oil filter with
a 14-flute end. MSRP is $32.17.
Contact: JIMS USA, 805-482-6913, www.jimsusa.com.
Snap-on
introduces
must-have
file sets
From Snap-on Tools comes new file
sets to add to your toolbox. The
half-round file sets can be used for
filing holes and for using on flat
and concave surfaces, the company
says, because they are double-cut on
both the flat and convex sides. The
straight mill files also are double-cut,
but they are plain on one edge to
allow users to file surfaces without
damaging adjoining surfaces. Both
sets of files can de-burr, sharpen and
polish.
Both sets of files feature an
ergonomic design, non-slip grip, and
holes in their handles for easy hanging. Tools come in a black pouch with
a see-through front.
Contact: Snap-on Tools,
877-762-7664,
www.snapon.com/handtools.
JANUARY 2012
DEALERNEWS.COM
49
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DEALERNEWS JANUARY 2012
For more information visit
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DEALERNEWS.COM
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JANUARY 2012 DEALERNEWS 51
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OUT OF
MY
MIND
Mike Vaughan
is the former
publisher
of
Dealernews.
You
can reach
him
at mvaughan@
mikevaughan.
com or
via editors@dealernews.
com.
About
the only
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t
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PONY
WITH OHIO’S
WE RUMBLE
S OF PG&A
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PERFORMANCE PARTS
REPLACEMENT PARTS
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55
ASK FAIRLESS
Ed Note: We first introduced you to Ask Fairless in November, and results were mixed. One reader threatened to
cancel his free subscription to Dealernews. Another said he looked forward to further rants and raves from Fairless.
And one guy in Houston explained how his store handles customers who bring in parts for installation, adding that
he once wanted to work for Fairless, but wasn’t sure about it anymore. The biggest issue? Apparently we didn’t
do a good enough job explaining that this is a new feature and Fairless would be making up his own questions
and answers until the real submissions start pouring in. While we’re waiting, we offer another — more subdued —
installment of Ask Fairless with this warning: these questions aren’t from real people, but are based on topics he’s
heard over the years in the motorcycle business. Help a brother out and submit your own questions to editors@
dealernews.com or [email protected].
TIE-DYED
TALES
Rick Fairless is the
owner of Strokers
Dallas (a Top 100
dealer), Strokers
Icehouse and Strokers Ink.
Q
Dear Rick,
There are many motorcycle shows in my area
that I sometimes attend, but I never have displayed
at any show. I have inquired about the cost of booth
space and it always seems that it’s too much money
to justify the expense. If I paid the money for the
booth space, then I have to pay employees to work
that space, which could run into overtime for a full
weekend. What do you think?
— Signed: Concerned in Southern California
Dear Concerned,
Yes, it is very expensive to display at shows,
especially out-of-town shows. But in most cases, the
potential outweighs the risk. I would think that in Southern California there are lots of shows — probably some
every weekend. Yeah, that could get expensive if you
do them all, but you should pick and choose the shows
that can help you the most.
Know where your competition is and display at shows
in their neighborhood. I would check out every bike
show within a 50-mile radius to see which ones might
benefit your company the most. Basically, what you
want to do is create some awareness in your competitor’s neighborhood, and maybe get some of their
customers coming to your store. You can hand out fliers
giving the prospective customer a reason to come to
your store. Maybe it’s a service special, or maybe it’s
a discount on parts, or maybe it’s because you have a
good-looking ol’ lady (I doubt it).
I try to get the customer to come visit my store one
time. After that, it’s my job, and my staff’s job, to take
such good care of them that they keep coming back.
What I try to do is outwork my competitors. I look at the
competition as it’s them versus me, and I want nothing
more than to kick their asses. That’s what business is —
it’s you and your people versus your competitors and
their people. Setting up a booth at shows in their territory will bring awareness to your business. So, I say give
it a try, but make sure you have an impressive display
and some well-done, professional fliers to hand out, giving them a reason to come visit your store.
If you have a chickenshit display, then you’re better
off sitting on the couch watching reruns of “The Brady
Bunch” (Can you say Marsha, Marsha, Marsha?). Hey,
get off the couch and let’s get back to work! Dear Rick,
I have owned my motorcycle shop for 10 years
A
On the
Web:
Would you like to
weigh your thoughts
on Fairless’ new column feature? Leave
a comment in the
comments section
by visiting www.
dealernews.com/
AskFairless1.
Q
56
DEALERNEWS.COM
JANUARY 2012
now, and business sucks. Business was bad enough,
but about a year ago a new shop opened up five
miles from me and since then, they’ve taken what
little business I had. We sell used bikes, offer a full
line of parts, motorcycle clothing, leathers, helmets
and accessories; I have a full service center where we
work on all American-made motorcycles. It’s already
cold here in New England and if business doesn’t
change then I won’t make it until spring. Help!
— Signed: Down and Out in New England.
Dear Down and Out in New England,
Ya know what you ought to do? Quit feeling
sorry for yourself and get to work. You may be down,
but you’re not out — yet!
The only way you are gonna survive is to get your
customers back — with a vengeance — and get new
customers, too. You will have to seriously work your ass
off. I would grab that competitor (figuratively) by the
throat and kick the piss out of them! It’s called old-fashioned hard work and 100 percent commitment. That’s
the only way you are gonna win this war, and that’s
exactly what you’re in the middle of — a war. You ready
for that? It means changing your lifestyle, drastically!
Are you open seven days a week? Do you open early
and stay open late? Are you personally there to greet
customers and shake hands with every person that walks
through my doors?
You need to be open when your customers are off
of work, that means Mon-Sun until 7 p.m. We do a
first-come, first-serve on service work on the weekend.
People prefer to deal with the owner, so be there and
be involved in everything that happens at your joint.
What about discounts? I’d rather have a little piece
of pie rather than no pie at all! And I don’t take a day
off, ever. The only time I’m not at my shop is if I’m at a
motorcycle function out of town somewhere.
Have a bike night at least once a month. If you do a
good job, it will grow. Go and hand out cards at other
bike nights around town, shake hands, spread the good
word about your store. Sell yourself. It’s a drastic lifestyle
change but, if you want to stay in this industry, then quit
effing around, get up early and kick the ass of that new,
fancy shop every stinking day. Out-work those fools. It’s
you against them, and you are literally fighting for your
chosen livelihood. Or, you can just keep doing what
your doing and I’ll see you next time I drive through the
Burger King. Maybe you can super-size my order at no
extra charge.
A
IT’S
SHOW
TIME!
If it’s February, that
means two things:
V-Twin Expo in
Cincinnati and Dealer
Expo in Indianapolis!
For all of your Bluetooth
helmet communication
system needs, there’s
only one booth to head
to: scala rider. There’s
a reason why we’re the
most asked-for helmet
communication system
on the market: we offer
the most innovative
products, the best
customer service, and
the most reliable, easyto-use systems available.
Many try to copy us but
remember…there’s only
one scala rider!
Come see what’s new
in Cincinnati in booth
#2619 and #2621 and
in Indianapolis in
booth #1107!
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