Motorcycle & Powersports News, August 2014 by Babcox Media

C1 Cover MPN 08.14_Layout 1 8/6/14 11:08 AM Page C1

w 2015 KYMCOs

AUGUST 2014 VOL. 40 NO. 8

08.2014

w Full-Face Helmets

w Street/Touring Tires

C2 VP Racing MPN 8/6/14 11:09 AM Page C2

01 AIME MPN 8/6/14 10:35 AM Page 1

02 contents_Aug 8/1/14 12:42 PM Page 2

Contents

Volume 40 Number 8 MotorcyclePowersportsNews.com

EDITORIAL

Selling to Women

Editor – Brendan Baker bbaker@babcox.com

How to cater your dealership to the female psyche By Alisa Clickenger

Cover photo provided by Harley-Davidson

Dealership Operations Our New Man

Managing Editor – Greg Jones gjones@babcox.com Columnists & Contributors

.....................................................................................................................................................................................

The Road Ahead by Brendan Baker

Shifting Gears

............................................................................................................................................................................

Eric Anderson Steve Dodds II Steve Jones Alisa Clickenger Margie Siegal Jim Woodruff Heather Blessington C.R. Gittere Cyclepedia Press LLC

All the News that Fits by Robin Hartfiel

Organic Retailing

...............................................................................................................................................................

Confessions of a Customer by Eric Anderson

Holding the Line

ART

...................................................................................................................................................................

Graphic Designer – Kelly Gifford kgifford@babcox.com

NPA Pre-owned Monthly Recap by Jim Woodruff

Coleman PowerSports

Editor-at-Large – Robin Hartfiel robinhartfiel@gmail.com

.........................................................................................................................................

Destination Dealership by Margie Siegal

Dealer New Units in Stock

Official Publisher of the AIMExpo Show Daily and Show Directory

..........................................................................................................................

Inventory Report by ADP Lightspeed

KYMCO Reaches 50

......................................................................................................................................................

OEM Update by Brendan Baker

June Year-Over-Year Comparison

..........................................................................................

Best Operators Club by Steve Jones

Becoming a Problem Solver

...................................................................................................................

Service Manager by C.R. Gittere

Online Reputation Jumpstart Guide

...................................................................................

Web Savvy by Heather Blessington

CV Axle Boot

..................................................................................................................................................................................

Tech Tips by Cyclepedia Press LLC

Full-Face Helmets ................................................................ 30 Whats new in helmet technology

What You Don’t Know Could Hurt You

.............................................................................

Finance & Insurance by Steve Dodds II

Israel, John Penton and the EGO

Product Focus Street Tires .............................................................................. 42 Where rubber meets the road for sport and touring tires

................................................................................................

Pit Pass

Hand Tools

.......................................................................................................................................................................

Necessities to keep you out of a sticky situation.

MPN (ISSN 0164-8349) is published monthly by Babcox Media, Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, Fax (330) 670-0874. Periodical postage paid at Akron, OH 44333 and additional mailing offices. POSTMASTER: Send address changes to MPN, P.O. Box 13260, Akron, OH 44334-8660. A limited number of complimentary subscriptions are available to individuals who meet the qualification requirements. Call (330) 670-1234, Ext. 242, to speak to a subscription services representative. Paid Subscriptions are available for non-qualified subscribers at the following rates: U.S.: $69 for one year. (OH residents add 5.75% sales tax) Canada/Mexico: $89 for one year. Canadian rates include GST. Other foreign rates: $129 for one year. Payable in advance in U.S. funds. Mail payment to MPN - Circulation, P.O. Box 75692, Cleveland, OH 44101-4755.

2 August 2014 | Motorcycle & Powersports News

03 MTA MPN 8/6/14 10:36 AM Page 3

04 road ahead_Aug 8/6/14 10:37 AM Page 4

THE

Road AHEAD

By Brendan Baker

ADVERTISING SALES Publisher Sean Donohue

sdonohue@babcox.com (330) 670-1234 ext. 206

Display Advertising Sales Roberto Almenar Tom Staab Bobbie Adams Doug Basford

New Man, Women Riders and a Texas Rodeo

f you look over to your right, you’ll notice something different at the top of that column. Sean Donohue has been named Publisher of this fine publication. When you work hard for years and are a team player, sometimes you get rewarded. And as much as I dislike corporate cliches, in this case we’ll let it slide because it is really true. On the business end of our magazine, Sean is “the man.” In baseball terms, he’s been batting cleanup since Babcox acquired the title all those years ago, and he’ll continue to be the man in his new role. On the editorial side, he is busy helping us put the pieces and parts in place to make our product better and one that will be the leading voice in the industry. I know Sean will succeed in his mission for MPN. Congratulations, Sean! Something else that you may have noticed is our focus on Women Riders in this issue. Women represent a significant and growing

percentage of motorcycling. According to the MIC, as much as 25 percent. Our contributor, Alisa Clickenger, is well qualified to cover this topic on page 16. She says that when a woman walks into your dealership, whether she’s a rider or a mother or spouse, she is likely to influence the sale. Dealerships need to hone their way of thinking and how to best approach women riders to earn their business. It’s all in the relationships, according to Alisa. Finally, we stopped by the Tucker Rocky/Bikers Choice Brand Expo Dealer Show in Frisco, Texas. With almost 200 exhibitors on hand, I guess everything is bigger in Texas. The show featured a wellorchestrated and well attended fashion show that showcased the latest gear in a high-fashion atmosphere. Move over Zoolander! There were also some great seminars for dealers and a poker tournament. t

Brendan Baker, Editor

David Benson Dean Martin Jim Merle Glenn Warner John Zick Don Hemming

ralmenar@babcox.com (330) 670-1234, ext. 233 tstaab@babcox.com (330) 670-1234, ext. 224 badams@babcox.com (330) 670-1234, ext. 238 dbasford@babcox.com (330) 670-1234, ext. 255 dbenson@babcox.com (330) 670-1234, ext. 210 dmartin@babcox.com (330) 670-1234, ext. 225 jmerle@babcox.com (330) 670-1234, ext. 280 gwarner@babcox.com (330) 670-1234, ext. 212 jzick@babcox.com (805) 845-1400 dhemming@babcox.com (330) 670-1234, ext. 286

ADVERTISING SERVICES Advertising Services Amanda Wingerter

awingerter@babcox.com (330) 670-1234 ext. 223

CIRCULATION SERVICES Circulation Manager Pat Robinson Circulation Specialist Star Mackey

probinson@babcox.com (330) 670-1234, ext. 276 smackey@babcox.com (330) 670-1234, ext. 242

Official Publisher of the AIMExpo Show Daily and Show Directory

For show publications advertising information call Sean at 330-670-1234 , ext. 206.

AFTERMARKET MEDIA NETWORK Babcox Media Headquarters 3550 Embassy Parkway, Akron, OH 44333 (330) 670-1234 Fax (330) 670-0874 Babcox Media California 735 State St, Suite 409, Santa Barbara, CA 93101 (805) 845-1400 Fax (805) 324-6015 CORPORATE Bill Babcox, President Greg Cira, Vice President, Chief Financial Officer Beth Scheetz, Controller Copyright 2014, Babcox Media, Inc.

4 August 2014 | Motorcycle & Powersports News

05 Kuryakyn MPN 8/6/14 10:38 AM Page 5

06-08,11 News_Aug_Layout 1 8/6/14 10:40 AM Page 6

Inside the Industry The All-New 2015 Polaris Slingshot is Unleashed Polaris celebrated 60 years of innovation by introducing the highly anticipated 3wheel roadster, Polaris Slingshot, at its Summer Sales Meeting. “Slingshot was designed to deliver head turning exhilaration on two dimensions,” said Mike Jonikas, vice president of Slingshot. “First is the exhilaration that you can see, hear and feel while riding in Slingshot. Second is the exhilaration you feel when people turn their heads to stare at Slingshot’s unique and exotic styling.” Slingshot is an entirely new on-road driving and riding experience. The open air cockpit of Slingshot features side by

side seating so both driver and passenger experience a front row view. Its wide stance and sport-tuned suspension will make you want to charge every corner and never let off. With a low to the ground vehicle stance, you can

Re: EV Bikes Article in June In engineering school they used to tell us to be wary of making conclusions of fact based on disassociated “facts.” E.g., – (A) Telephone poles are tall, men are tall, and therefore all telephone poles are male. (B) If you cut off all of the legs of a frog trained to jump on voice command, it does not jump anymore because it went deaf. The repeated bankruptcy of Vectrix has little to do with market demand. When you raise $130 to $180 million and burn through it in less than five years, it is not about the market. It’s about blowing millions trying to also get in the battery business, a factory in Poland, building capacity without ever testing the market, and having expensive offices at “1 Technology way,” and a separate test facility with Phd on staff. Or the big one, doing a 1,500 unit production run on your last cash and then declaring bankruptcy within three months of doing so. Then the new owners, being a battery company, not a bike company thought they could just stuff lithium in the old bike, jack up the amps, and make a new hot model. They also left dealers setting with bikes with no title documents, broken parts, etc., and expected new dealers would not know about the mess. To date, ZEV Electric has developed 17 models to Vectrix’s two, never raised money, paid for everything with production, and went in the black in the first year. As the oldest and widest line of electric bikes in the world, and a USA producer, it is surprising that there was no mention of ZEV in your article. Quietly, we have sold more bikes into actual owner hands than Vectrix ever did. From what we understand based on comments by management at Brammo and Zero and the Federal recall filings, the same goes for them. This year, we did as much sales in the USA in the first five months as we did in all of last year. I expect USA sales to double by the end of the year in units where the average sale is running $6,800. The new LRC with 140 mile range and 80 mph speeds at $13,900 is slowly dragging that average up. 6 August 2014 | Motorcycle & Powersports News

feel the rush of pavement under your seat and in your chest. Slingshot is lightweight and powerful, making for heart pounding acceleration. Slingshot is powered by a 2.4 liter DOHC engine and a 5-speed manual transmission. It features a high strength steel spaceframe, a lightweight aluminum swingarm, and a carbon fiber reinforced drive belt. With a dry weight of less than 1,700 lbs., a very low center of gravity, and an engine that produces 173 horsepower. Slingshot has advanced

RE: BACKFIRE You did give a few paragraphs to Terra Motors, the Japanese company funded like Vectrix with millions, who has gotten lots of press, but extremely few sales due to what appears to be primarily their extremely marked up prices. We are in India, China, Vietnam also (just like Harley, Ducati, etc.), but those are standalone markets to us. You cannot, as in the “telephone poles are male” conclusions say or even extrapolate that electric scooters will not sell in the USA. Maybe you could instead think that the Terra A400 bike at near $4,000 just cannot compete in the USA with ZEV at $2,800 when our bike outruns and out distances them. Since their bodywork looks like a rehash of our bodywork (Chinese body panel factory leak out the back door), it would be an even tougher sale. We also see that Asian factories are really afraid of the USA/DOT enforcement policies. They do not have to worry about that in other markets. No one comes along and fines them millions for bad brakes or other noncompliance like in the USA. Last year in one city area where we had long sought dealers, we had a rush of direct order sales that resulted in $63,000 in sales in a few months of our 80 mph, 80 mile range electric T7100. Thinking that this would be a good example to sign up a dealer, we contacted dealers in the area, then had the owners join in a ride to the dealer to show off the bikes and show their enthusiasm. The dealer told us that the owner ride just was the final killer. Knowing that we had sold that many they said, “If you sold that many already, then there cannot be any more we can sell. You already took the entire market.” Deaf frogs and male telephone poles. Take a look at our model line at www.zelectricvehicle.com. You are welcome to visit and test drive. DH Zehrbach II, Z Electric Vehicle Corp.

Editor’s note: If there are industry issues that we should be addressing, please feel free to let us know. Please send your letters to bbaker@babcox.com. t

06-08,11 News_Aug_Layout 1 8/6/14 10:40 AM Page 7

motorcycle features such as electronic stability and traction control, 3-wheel anti-lock disc brakes, LED taillights, forged aluminum roll hoops, and 3-point seat belts. Slingshot can also be personalized with premium accessories that are designed for your vehicle: larger tires with forged aluminum wheels, media console, windscreens, and vehicle covers. Slingshot is offered in two distinct trim levels. The base Slingshot, with a U.S. MSRP of only $19,999, and the premium model called Slingshot SL, with a U.S. MSRP of $23,999. Both trim models will be available this fall at Polaris Slingshot dealerships across the U.S. and Canada.

Harley-Davidson's Project LiveWire Will Appear in Marvel's 'Avengers: Age of Ultron' Harley-Davidson and Marvel have announced that Harley's Project LiveWire – its first electric motorcycle – will be the ride of choice for Natasha Romanoff

(a.k.a. Black Widow) played by Scarlett Johansson, in an epic scene with Captain America in the new film, 'Avengers: Age of Ultron.' The addition of Project LiveWire to Avengers: Age of Ultron confirms months of speculation that Harley-Davidson and Marvel are, indeed, teaming up again. Harley-Davidson motorcycles – including the Harley-Davidson Street 750 featured in Marvel's Captain America: The Winter Soldier earlier this year – have appeared in a number of Marvel movies and television shows over the last several years. “Our partnership with Marvel continues to provide thrilling platforms to showcase our latest innovations to

existing and new fans of the brand,” said Dino Bernacchi, Director of US Marketing at Harley-Davidson Motor Company. While not for sale, Project LiveWire is specifically designed to get insight into rider expectations of an electric HarleyDavidson motorcycle. In keeping with the company's customer-led product development approach, Harley-Davidson is taking Project LiveWire to consumers across the country to provide feedback to help shape the future of HarleyDavidson's first-ever electric motorcycle.

Road Racing Legend Kevin Schwantz Named 2014 AIMExpo Champion The American International Motorcycle Expo (AIMExpo) has announced that American road racing legend and former FIM 500cc World Grand Prix Champion Kevin Schwantz has been named “AIMExpo Champion” for the 2014 event. Kevin will serve as the show’s ambassador when the entire motorcycle

MotorcyclePowersportsNews.com 7

06-08,11 News_Aug_Layout 1 8/6/14 10:40 AM Page 8

Inside the Industry industry comes together this fall to celebrate the latest and greatest from the powersports marketplace. Schwantz will also play an integral role in pre-event publicity and promotion, will be a focal point of several of AIMExpo’s festivities and perhaps most importantly, will share his stories and experience with everyone that attends the show. “I feel truly honored to be selected as this year’s ‘AIMExpo Champion,’” said Schwantz. “This event has completely changed the landscape of the motorcycle industry and provided a much needed jolt of energy for the business in North America. I’m also excited about the opportunity to join such an impressive gathering of motorcycle enthusiasts.” Schwantz‘s incredible natural talent and “win at all costs” mentality ushered in a new era of competition and ultimately led to his winning the World Championship in 1993. “Kevin is a racer’s racer much like our

it enjoys in racing. The longstanding relationship between Schwantz and Suzuki has become most notable in recent months following the official announcement that the Houston-born rider would continue his pursuit of the one crown jewel that has eluded him, a Suzuka 8 Hours win, at the age of 50.

inaugural Champion, Kenny [Roberts], and carries a star power that very few racers have,” said Larry Little, vice president and general manager of AIMExpo. “He’s a proud Texan whose resume speaks for itself, and his talents both on a motorcycle, and off-track activities to give back to the sport, helped him become one of the most popular riders in MotoGP history. He remains a household name across the globe for any racing enthusiast.” Throughout his illustrious career, Schwantz rode for Suzuki, helping the now iconic brand rise to the prominence

8 August 2014 | Motorcycle & Powersports News

DragonFire and WPS Team Up For Success DragonFire has teamed up with leading aftermarket parts and accessories distributor Western Power Sports (WPS). “DragonFire is the leader in aftermarket parts and accessories in the UTV Side-X-Side marketplace,” states General Manager David Asher. “From our trademarked RacePace, RockSolid and ReadyForce product lines to our performance-based racing history, DragonFire has emerged from being a race-specialty shop to become the true player for the entire UTV industry.” Continues on page 11

09 Emgo MPN 8/6/14 10:41 AM Page 9

10 shifting gears_Aug_Layout 1 8/1/14 12:54 PM Page 10

By Robin Hartfiel

SHIFTING GEARS Printing All The News That Fits H eadhunter Henry Lonski has hired KTM’s former Mid-Atlantic RSM, Sam Chalk. A native of North Carolina, Chalk’s diverse industry experience includes 17-years with KTM, backed by 10+ years of experience as the owner, dealer principal and GM for a large four-line dealership in the Southeast. Most recently, Sam enjoyed two years as MSXI-BMW aftersales business manager, coach and consultant. A former racing competitor, Sam still pursues his lifelong passion for off-road riding. “Sam brings unique talents and a valuable mix of experience to the Lonski Recruiting Team,” said Henry Lonski. “He is a degreed mechanical engineer, with a decade of successful dealership owner experience under his belt. He has significant time in OEM sales, as well as in present-day dealership consulting.” Chalk adds, “I constantly see the agony dealers and OEMs experience when trying to staff their businesses. Henry contacted me and I was immediately attracted to the grass roots/guerilla passion I sensed from him: Get the job done. Best customer service. No hidden agendas.” •••• Former Alpinestars and Ducati North America PR type Tim Collins is now the marketing director for Bonnier Motorcycle Group. BMG is the parent company for both Cycle World and Motorcyclist. “I am confident that Tim is an excellent match for the position and will be a strong addition to our marketing team,” says BMG Associate Publisher, Marketing Garrett Kai. “Not only will Tim be a great resource for Bonnier Motorcycle Group, but his industry knowledge and expertise, coupled with his relationships within the motorsports community, will make him a valuable

asset as we continue to develop our brands’ engagement strategy.” Collins takes on brand marketing and the development of custom programming for the OEMs and aftermarket companies. “The opportunity to join this team was something I just couldn’t pass up,” Collins says. “Throughout my career I have been involved in some phenomenal projects and global initiatives. Now, as I begin this new chapter at Bonnier, I am fortunate to work with a team and an organization that has been building huge momentum with such contagious enthusiasm.” •••• Brace yourselves, long-time Leatt Brace front man Phil Davy is now the Senior Director, Apparel Brands Tucker Rocky / Bikers Choice. “I have proudly spent my entire adult professional career in the motorcycle industry,” says Davy. “The majority of which has been specifically spent working on the branding, marketing and selling of protective equipment for performance motorcycle riders and racers.” In his new role, Davy will be directing the marketing, branding and product lines for Answer, FirstGear, MSR, and RiverRoad among others. “Phil is a pro in every sense of the word,” says Tucker RockyVP of Marketing Hank Desjardins. “Simply put, there are few better brand builders in the powersports industry.” Phil’s specialties include seeing ahead to the future of motorcycle riding protective equipment, then making that vision a reality, according to Desjardins. If his track record with Icon is any indication, Davy might just be a little clairvoyant! •••• Former Hot Bike editor and S&S Cycle marketing guy Howard Kelly has hung out his HKC shingle as a consultant. “Unlike most marketing consultants, HKC insists on starting by learning your business and the infrastructure that

10 August 2014 | Motorcycle & Powersports News

supports it,” says Kelly. “An evaluation of your business practices and the team that implements them is done prior to preparing a marketing campaign.” Once your needs have been established, HKC can create your press releases, catalogs, brochures, collateral materials, advertising and full marketing campaigns. Because HKC will work directly with owners/principals, client space will be limited. Contact www.howardkellyconsulting.com, e-mail hk@howardkellyconsulting.com or call (949) 491-5182. •••• George B. Smith stepped down as chairman of the board and CEO of S&S Cycle in mid-July to become chairman emeritus. In his new role, Smith will work with the board of directors on strategic initiatives and other critical issues. With Smith’s retirement John McGinnis, an S&S board director since 2007 and vicechairman the past three years, becomes the new chairman of the board. Smith joined the family business in 1979 and became president following his father’s untimely passing in August of 1980. After becoming president, he helped S&S become a leader in the V-Twin performance market, earning V-Twin Magazine’s “Lifetime Achievement Award” in 2013 for his contributions to the industry. “The past 35 years have been quite a ride,” says Smith. “I am very proud of what the S&S Team has accomplished.” McGinnis adds, “It is a great honor to become chairman of S&S Cycle and relieve George of some of his responsibilities so he can enjoy some well-deserved time off. These are opportunistic times at S&S Cycle and I find it challenging and exciting to work with S&S President Steve Iggens and the S&S team to develop and implement new strategic initiatives that will best serve our customers into the future.” t

06-08,11 News_Aug_Layout 1 8/6/14 10:40 AM Page 11

Inside the Industry Continued from page 8 Knowing who DragonFire is certainly helps, but getting dealer access is equally important. In signing a distribution deal with WPS, this key link to the consumers is now complete according to Asher. “It is important to note that 98 percent of all DragonFire products are now available through Western Power Sports.” “We are excited to add DragonFire to the portfolio of brands WPS offers,” adds Western Power Sports President Craig Shoemaker. “Our rep force is second to none, and they are ready to heat things up in the booming UTV business.”

Giant Loop Expands International Distribution In Japan, Indonesia Adventure-proof packing systems innovator Giant Loop recently expanded its international export business with the addition of distribution partners in Japan and Indonesia. In Japan, Breathfield Inc. will import and promote the Giant Loop product line, and Karya Indah Motor will cover Indonesia. Both companies are established motorsports distributors in their home markets, importing and distributing a number of high quality motorcycle products from around the world. “With the addition of these highly regarded partners, Breathfield and Karya Indah Moto in Asia, Giant Loop products are now distributed on every inhabited continent on Planet Earth,” says Harold Olaf Cecil, owner and co-founder of Giant Loop LLC. “One country at a time, Giant Loop is achieving our vision of becoming a truly international company, while still manufacturing most of our products in the USA.” Breathfield Inc. is the Husqvarna and MV Augusta motorcycles importer for Japan. The Tokyo-based company also sells Kawasaki and Yamaha motorcycles, as well as a number of parts and accessories brands, such as APE, TM Designworks, Meca’System, Scalvini Racing, Athena, ProX Racing Parts, Eni, Bel-Ray and Mikuni. Based in Jakarta, Karya Indah Motor is the Indonesian distributor for Rekluse, Klim, Pro Moto Billet / Fastway, Scotts Performance, Bulletproof Designs and E Line. Karya Indah Motor also sells KTM motorcycles and is a Tucker Rocky and a Western Power Sports dealer. t MotorcyclePowersportsNews.com 11

12 confessions_Aug_Layout 1 7/31/14 4:19 PM Page 12

Confessions OF A CUSTOMER

By Eric A nderson

Organic Retailing Time To Get Dirty!

“O

rganic Retailing" — this just sounds wrong! But the concept is catching on in all sorts of shopping venues. Words like local, artisanal, handcrafted, madeto-order, personalized and of course, the overused “organic” are all more popular than ever before. And it’s not just Baby Boomers swinging away from the sterile, cookie-cutter franchised retailers – it’s younger buyers, too. Local businesses seem to be making a comeback as a pushback to the omnipresent mass market retailers. Boring! A previous column of mine referred to the “sea of sameness” out there for the shopping experience – both in the powersports arena and general retail. Since it is all the same out there, why not shop on the impersonal Internet instead? Apply this concept to your powersports store as you read this article. Do you or anyone in your family shop at the weekly farmer’s market? How about boutique apparel stores? Local restaurants or nationally franchised chains? Craft beer halls or Bud Lite-serving sports bars? Big golf courses or funky, fun local ones? See what I mean? Things are changing and choices are coming. Even the Gen-X and Millenials seem to be shying away from the traditional brick-and-mortar dealership experience in favor of finding an old Honda CB 550 on Craigslist and restoring it. Even Harley-Davidson new unit sales are flat as of the writing of this piece… maybe there is a reason? Perhaps America is burned out on the same old retail formula which worked on the “masses” for the past three decades? Maybe we want to be treated as individuals once again rather than part of the cytoplasmic blob of mindless shoppers. Have you seen or heard of the new trend in pizza parlors? Make your own!

Chipotle’s Mexican-themed menu allowing you to “invest” in your own personalized meal was a home run in the west. Ditto for Slater’s 50/50 Burgers by Design (.com) offering a choice of more than 150 ways to size, cheese or top your own burger… plus there is even the option of a gluten-free bun for wheat-shunners like me. Now that’s customized eating! Nikeid.com and Vans.com have offered personalized shoes online for nearly 10 years. Oakley does it too on

The pendulum for recreational shopping is swinging away from “big and glitzy” — The trend now is to place retail venues in older, restored buildings with a local story. their Factory Custom website. How can your dealership become a more fun place to shop, more customer personalized and individual-specific? It has been said we are entering the age of “no customers.” To interpret this powerful quote, you need to erase your previous concept of multiple customers (plural). There is only one customer — the one standing in front of you! He is the most important person in your retailing life at that moment because you only have one shot to make him a return customer rather than a runaway customer. If you offer some personalized services which make him feel special about shopping at your store, he will likely return because of his “blown away” first impression. If you are simply toeing the retail line and attempting to keep up with the Jones’ dealership across town, you have lowered yourself to

12 August 2014 | Motorcycle & Powersports News

everyone else’s level of shopping. No wonder your floor traffic is down! Call it hip, hot or hilarious, it’s so much more fun to shop when surrounded by something new and unique! It might be a small movement now, but why not be on the leading edge of what’s going mainstream. The pendulum for recreational shopping is swinging away from “big and glitzy” — The trend now is to place retail venues in older, restored buildings with a local story. Retail is being repurposed just like a vintage CB 550 with modern tires, electronic ignition and a comfortable seat. Old movie theaters, citrus packing houses, barns, car dealerships, churches and former fire stations are now getting fun and funky remodels and new facades to bring out their individuality. The Ace Cafe in the UK is coming to North America early next year and they have elected to refurbish an old railroad maintenance facility in downtown Orlando. A motorcycle dealership and retail store is also inside a part of the 90-year-old building. It will have modern conveniences, of course, but the “story” of the trains and building will be preserved and promoted alongside motorhead mania, food and music. Organic! Nobody expects you to move your shop to a historical venue. The question is how can you provide more “story” to the place you have now? The plethora of home remodeling shows on HGTV proves there are thousands of ideas out there you have never thought of for a possible facelift for your store. Perhaps it’s time to go on a field trip and explore some other “organic retailers” to see what else is possible out there… and stop looking inside the Big Box merchants’ boxes. Get dirty! t

13 MotorTrike MPN 8/6/14 10:42 AM Page 13

14 NPA recap_Aug 8/6/14 10:42 AM Page 14

Recap

Pre-owned monthly

By Jim Woodruff

Reflecting on Spring as we Shift to Summer

pring is officially over for the wholesale powersports market. After last year’s lackluster spring and sprinkle of summer demand, spring 2014 reflected fresh optimism and better inventory management by powersports dealers. June’s results illustrate the start of the natural decline that is felt each summer as consumer behavior shifts from buying in the spring to riding in the summer, while the scents of next year’s models begin to waft through the air. We expect the coming months to continue to follow the seasonal trends of previous years, with additional seasonal wholesale price declines of 5-10 percent through the summer months. Wholesale volumes will decline through the summer as well, though we believe supply will remain more stable than last year due to slightly better repossession volumes and smarter inventory management and pricing among consigning dealers. By The Numbers On-highway categories saw a small dip in Average Wholesale Pricing (AWP) year-over-year for June. Domestic cruisers were down from last year by one percent, while both metric cruisers and sport bikes decreased by four percent. Off-road AWP was a mixed bag compared to last year – ATV’s increased seven percent while the MX category and Side-X-Sides mirrored each other with a three percent decline. When we compare June to the past three months we also see decreases across all but one category. Metric cruisers saw the biggest drop for the on-highway categories with a 13 percent decrease from May while the domestic cruisers and sport bikes saw single digit declines. Off-highway categories also saw similar declines with the MX category seeing the biggest drop at 15 percent. The increase for the snow category was off the charts for June with a 42 percent increase in AWP, which is directly related to limited inventory available for purchase at auction this year and last year’s low comparables. t

Data includes all live and online transactions from all four NPA locations. Closed OEM auction data is excluded.

All data provided by National Powersport Auctions. For more information, please visit www.npauctions.com or call (888) 292-5339.

14 August 2014 | Motorcycle & Powersports News

15 Zurich MPN 8/6/14 10:43 AM Page 15

16-19 Selling to Women_Layout 1 8/6/14 11:13 AM Page 16

By Alisa Clickenger

ore women than ever are learning to ride and purchasing motorcycles. We’re the fastest growing segment of the marketplace, and we’re tooling down the road in record numbers. The Motorcycle Industry Council says there are an estimated 6.7 million women operators, which is roughly 25 percent of the riding population. 12.5 percent of motorcycle owners are female. If your dealership hasn’t thought about how to increase your sales to women, then you are missing out on a formidable piece of profit. Whether the woman who walks into your store is a rider or passenger, mother or significant other, there’s a high probability she’s going to influence the sale you are trying to make, whether you like it or not. The dealerships that like it and embrace it – Harley-Davidson as a brand is an excellent example – are flourishing.

16 August 2014 | Motorcycle & Powersports News

Talking to Women Women respond best to questions that refer to their experience. Genevieve Schmitt, founder and editor of WomenRidersNow.com, has been a consultant to dealers for 15 years. According to Schmitt, good conversation icebreakers are questions such as “What do you plan to do with that motorcycle you want to buy?” or “Where do you plan to ride it?” Get your woman customer to start talking about all the adventures and things she dreams of doing with her bike. Ask these questions instead of the usual, “Do you want a cruiser or a sport bike?” or “How much power do you want?” etc. Schmitt’s recommendations for communicating with your female customers include active listening – re-stating or paraphrasing what your customer has just asked or told you – to confirm the understanding of both parties. She also recommends asking open-ended questions and forgoing some of the more technical aspects of motorcycling in favor of the more experiential questions.

Motorcycling is a male-dominated sport, and a successful dealership’s written communications need to specifically call out to women inviting them to participate in events, dealership programs and community rides. “Unless women are specifically called out to, women will assume, those women that are not involved in motorcycling, they will assume that they are not invited,” says Schmitt. Relationship Selling Successful dealerships work hard to move beyond one-time sales and to cultivate long-term customer relationships. Motorcycles in general are more about the relationship and the services rather than the products and the deal, and this is especially true for women. This is why women are your ideal

Photos courtesy WomenRidersNow.com

16-19 Selling to Women_Layout 1 8/6/14 11:13 AM Page 17

Photos courtesy Ride Empowered

Crafting a Female-Friendly Dealership

customers – not just because they control the majority of household income, but because women by nature are long-term, loyal customers. Tigra Tsujikawa, an industry veteran who focuses on consumer engagement marketing, believes that selling is all about relationships. “The most important thing is relating to your customer,” she says. “Whether that customer is a woman, a man, a young kid or a child that’s learning to ride, it’s about learning to relate to that customer.” Tsujikawa notes, “While men are very task oriented, women are very discovery oriented.” Why does this matter? Because women are prone to express their concerns more than men. This is where a salesperson’s listening skills come in to play. Women want to be heard and feel like they are being listened to. A salesperson that

w Have a qualified woman rider on staff – not just someone’s relative but an actual rider. Her presence will help other women fell more comfortable in your dealership. She can also ease your dealership into the nuances of creating a more inviting environment for female customers understands this and can ferret out a woman’s concerns will be a successful one. “If you don’t listen, and you don’t take the time to understand your female customer, then there will be a lot of misunderstanding,” says Tsujikawa. The Sensory Shopping Experience Women are sensory oriented. Schmitt suggests dealers ask themselves if their store is well lit, if it smells good and is there music that is pleasing to the female ear. If you want to create a space where women feel comfortable coming to shop and spend their money, this is where your design dollars make the most sense. Take one look at popular retailers such as Nordstrom’s, Macy’s or Lord & Taylor. There’s a friendly welcome, the racks are spread out, there’s no clutter, and the dressing rooms all have their own mirrors. Go to the

w Make sure you have a women’s bathroom separate from the men’s, and make sure it’s clean w Do not consider the women’s bathroom the fitting room w Make sure there are mirrors inside the dressing rooms w Go to the mall. Walk through Nordstrom’s or Macy’s and you’ll see where women enjoy spending money. Copy those environments w Ditch the girly pics. Women are not going to purchase anything in an environment where they are not comfortable w Clean up the clutter

MotorcyclePowersportsNews.com 17

16-19 Selling to Women_Layout 1 8/6/14 11:14 AM Page 18

bathroom and it’s clean, plus there’s nice-smelling soap. It’s all part of the design to make women feel more comfortable spending time there, which equates to women spending more dollars. Loyalty How can Doris Schumacher, founder of Ride Empowered, a women’s motorcycle apparel shop based in Sioux Falls, South Dakota, make a living when most dealerships struggle to make ends meet serving men as well as women? Schumacher incorporates the above elements and more. She puts a lot of time and effort into listening to her customers and then working specifically to meet their needs. Schumacher, who has extensive customer service experience in other industries, tries to be personable and not an aggressive salesperson. The soft sell works for her, and she finds that most of her customers appreciate the personal connection with her and her

honesty. “Part of what I do is spend the time to do the research and find the products that will work [for the customer]. Or if I cannot find something that is motorcyclespecific, maybe I can find a similar brand that can at least meet the need. Maybe I can’t find a Milwaukee Motorcycle boot, or a Harley-Davidson boot, but I might be able to find a good quality boot that will make a functional motorcycle riding boot that will also fit a wider calf or a smaller foot. Investing all that time and effort into finding the product that is exactly right for her customers pays off for Ride Empowered. Although Schumacher’s business plan calls for supplying motorcycle apparel for women, she finds that her women customers are loyal and send their network– men and women – to her shop. “I have women whose husbands or their brothers are coming in and ordering from me,” says Schumacher. “They believe in me

18 August 2014 | Motorcycle & Powersports News

Ten Tips for Talking to Women Customers w Always say Hello w If a woman or a man-woman couple walks in to the dealership, send a female sales person over to talk with her or them

w Talk to women about their riding experience, not technical nuts and bolts w Beware of sounding condescending w Look your female customers in the eye w Ask open-ended questions w Listen w Practice active listening (repeating the last three words your customer just spoke)

w If a woman is with your male customer include her in the conversation w Slow down. Know that female customers are customers you will have to spend more time with

16-19 Selling to Women_Layout 1 8/6/14 11:14 AM Page 19

Photo courtesy Alisa Clickenger

and my approach to business, and they want me to succeed, and they will order from me even though they know they can go somewhere else and get it.” The Family CFO It’s commonly known that in today’s marketplace women are typically the family CFO, either head of the household or holding the purse strings. Sarah Schilke, head of marketing and PR for Schuberth North America and Held USA, is experienced in marketing to women. She points out that salespeople who can effectively talk to women,

whether riders, passenger, or the “family CFO,” will be the most successful. “It’s essential for dealers to include women in the conversation so that when a couple is in the shop together or when the man goes home, she understands how that motorcycle is a smart purchasing decision or how it’s going to work with their family budget,” says Schilke, who notes that if a woman is not the direct buyer, she most likely still plays a role in the decision. Making the Play for Passengers Schilke points out that if women are 12 percent of the market, and the dealership is not marketing to women, they are missing out on at least 12 percent profit right there. But she says that women being twelve percent of motorcyclists is a bit of a misnomer because that number represents registered motorcycle owners that are female. What if your dealership took into account the money that can be made from the passenger portion of the market? Consider that most men will have a woman as a passenger at some point, and she’ll

need safety gear as well. It’s important for dealers to look at this segment of the market as well because of the number of potential sales. Schilke points out that, “Seen in this light, it could be said that women just might make up more than one hundred percent of the market.” An interesting point, considering that motorcycling is still seen as a maledominated sport. Perhaps, then, the key is not only shifting the way female customers are addressed and catered to, but also making not-yet-motorcycling women more curious about and comfortable with the sport. Consider hosting more woman-centric events, and tying them in with community events. Better yet, give women a night out and have them start associating motorcycling with female fun, camaraderie and education, even before they begin riding. “That is the basis of Garage Party events that Harley-Davidson dealers have hosted for several years,” says Claudia Garber, Director, Market Outreach, Harley-Davidson Motor Company. Sounds fun. It’s on the calendar. t

MotorcyclePowersportsNews.com 19

20-21 destination_Coleman_Layout 1 8/6/14 10:46 AM Page 20

DESTINATION

Dealership Story by Margie Siegal

Coleman PowerSports The Power of a Woman’s Touch

he latest addition to the Coleman PowerSports lineup is EBR – Erik Buell Racing’s new line of sportbikes. With the introduction of EBR to its floor, Coleman has added an American sportbike to its international twowheeled lineup: the four Japanese OEMs, Italian sportbike manufacturer Ducati, U.S.-made Victory cruisers and Canadian three-wheeler Can-Am. Despite its size, Coleman strives to remain true to its roots. Founded in 1963, it is now run by second-generation manager Kim Coleman Harrison, who believes in a family-like community as strongly as her father, Dillard Coleman, did. “Our primary focus is our customer,” she says. In addition to motorcycles, Coleman PowerSports carries ATVs, UTVs, personal watercraft, scooters, apparel, accessories and parts. Coleman also delivers the service necessary to provide the best possible experience for the customer. The company started in Arlington, Virginia, selling BSA motorcycles. Mr. Coleman bought into the company with two partners. After buying out his last partner in 1967, he became the sole owner until his retirement in 1999. Over the years, other franchises and locations were added, and the company diversified into boats, personal watercraft, scooters, power equipment, ATVs, and more. Eventually, the company grew to include five stores throughout the Washington, D.C. metro area. In 1983, Mr. Coleman began consolidating these five dealership locations into two. The idea was to make two large-scale locations, offering the customer the ability to see and compare the various brands side by side. Today, the company still consists of these two stores: the main location, which moved from Arlington to Falls Church in 1986, and has

44,000 square feet of space; and the 38,000 square foot store in Woodbridge, built in 1995. Upon retirement, Mr. Coleman www.wherethepoweris.com sold his dealerships to a corporation 435 S Washington St called POWERride Motorsports, Inc., Falls Church, VA 22046 making the two Coleman (703) 237-3400 dealerships part of a larger organization consisting of multi14105 Telegraph Rd brand powersports dealerships in Woodbridge, VA 22192 Michigan and Louisiana. POWERride (703) 497-1500 primarily acts as an umbrella organization, allowing each dealer 75 employees to maintain local control in their OEM: Honda, Kawasaki, Suzuki, Yamaha, markets, but bringing corporate Polaris, Victory, Ducati, Can-Am, oversight, cash management, Kymco, Zero, EBR, Sea-Doo and GEM budgeting, financial reporting, inventory control, and buying power Aftermarket: Rev-It!, Dainese, Joe that the local dealer would not Rocket, Icon, Bell Helmets, Fox, Shoei, otherwise have. Arai, Sidi Boots, and many others. Due to POWERride’s approach, Kim Harrison is managing both Coleman locations. She is one of the few women to run a large, multi-line dealership. Harrison feels her position and dealership has benefitted from her gender, “I am sure that being female has an impact on my management style, and probably sets Coleman PowerSports apart from other dealers,” she says. “But mostly, it’s about being the best manager I can be – I have the ability to multi-task and I feel that I think differently. I am a planner and I focus on details. I am organized and I am always looking for and trying new ideas. I also like to be hands-on and involved in all aspects of the business.” Being a woman manager of a motorcycle dealer is not always easy. “I do feel that being female in this industry has its challenges,” she says. “With most of the staff and customer base being male, it takes a lot of extra effort to earn their respect. However, I enjoy talking

20 August 2014 | Motorcycle & Powersports News

Coleman PowerSports

20-21 destination_Coleman_Layout 1 8/6/14 10:46 AM Page 21

with the customers and I especially think that being female helps me solve problems and produce happy customers. Often, upset customers approach me differently than my managers. This gives me an opportunity to find out the problem and work out a mutual resolution in a non-confrontational manner.” Another key to Coleman’s success is the knowledge and loyalty of its employees. “Having experienced staff makes all the difference,” Harrison says. “Some of our employees have been here for 40 years. We can say, based on our expertise, that a particular brand will work better for a particular customer. We truly provide a service to the customer that he cannot get just anywhere, especially not online.” Coleman is also supportive of new riders and believes in proper training. The dealership works in partnership with APEX Cycle Education, but supports all of the local training classes. “We offer Learn to Ride seminars every month. They are designed as an introduction to motorcycling and to work in tandem with the riding school, touching on safety, the various types of motorcycles, training, proper gear, and maintenance. We have between three and 50 people who attend each seminar,“ says Harrison. The dealership also has seminars designed for three-wheeled riders, particularly those interested in Can-Am Spyders, and is working with APEX to develop an advanced rider seminar. “We have always encouraged a skills refresher, especially for people coming back to motorcycles,” Harrison states. One of the ways Coleman engages the customer is to have frequent events, making the dealership a center for socialization and entertainment, as well as shopping. “We have an annual auction, open houses and factory demo events. We demo our own bikes. There are events for the dirt rider and watercraft customer, too. We now can cook breakfast on the barbecue, in addition to our standard lunch, opening an option for morning rides and events. It is a way to show we appreciate our current customers and a way to meet new ones.” A customer-pleasing innovation at Coleman is consignment sales of used gear. The dealership accepts gear in

clean, good condition to be sold at the dealership in exchange for a percentage of the sale price. This is a boon, not only to the parents of young dirt bike riders, but also to street and dirt riders of all ages. “I stumbled onto the idea of selling used gear two years ago,” Mrs. Harrison explains. “I started gathering information from consignment shops and began developing a program for our industry. Developing the process to computerize the inventory and track the sale for payment to the customer was a challenge, but I eventually figured out an automated procedure.” Consignment sales have been very successful, and more used merchandise has sold than Harrison originally thought would. “To top things off, 60 percent of the consignment sellers take their payment in store credit,” she says. To get the word out about all the dealership offers, Coleman continues to utilize television and radio advertisements, while making full use of the Internet. “We make a point to participate with manufacturer’s key market advertising programs for television, and we advertise on the radio for our events. We have found that our most effective outreach medium is our website and subscriber list. We have 30,000 subscribers to our online newsletter, which we have been developing for 14 to 15 years now.” Being a part of the D.C. metro area, most of Coleman’s customers are techsavvy, so it sends out e-mail blasts every couple of days in season and has seen good results. These weekly e-mails promote in store events, community events, specials, and industry information. Coleman’s also e-mails customer surveys, notifications and thank you notes, and has plans to get into text marketing shortly. Coleman PowerSports has been around for more than 50 years and plans to stay around, “We see change, we will change, but we will keep the business fun and exciting,” says Harrison. “Manufacturers are starting to understand that customers want to buy, but need the products to be affordable. Price point, affordability and financing are very important, and when manufacturers understand that, we will all benefit.” t MotorcyclePowersportsNews.com 21

22 adp report_August_Layout 1 8/6/14 10:47 AM Page 22

ADP Lightspeed Dealer Management Solutions are designed to help manage dealer operations by tracking and storing data from every department and delivering information that will assist dealerships in making successful business decisions. Every night, more than 1,800 Lightspeed powersports dealers automatically transmit their information to a collective database held at the ADP Lightspeed offices in Salt Lake City, Utah. Summaries and aggregated reports are available to dealers for both current tracking and historical research. This helps dealers know how their dealership is performing compared to other dealers across the country. Parts and major unit inventory information is gathered and used in the highly successful Lightspeed Dealership Locator program. This program is designed for dealers to post obsolete inventory, allowing other dealers from across the country to locate hard-to-find parts and units. ADP Lightspeed stands ready to work with all parties to move the industry to new levels of understanding, and ultimately to more efficient and profitable operations. For questions regarding this report or to inquire about a custom report, please contact Lightspeed Data Services at (800) 521-0309.

Powersports Dealer New Units in Stock

July 2014 1,883 Lightspeed Dealers, Distribution of Units by Type and Model Year Prior to 2013 Model Year

2014 Model Year

9% 16% 76% ATV 12% 20% 68% Off-Road Motorcycle 10% 23% 67% On-Road Motorcycle 14% 31% 54% Scooter 11% 18% 71% Snowmobile 4% 10% 86%

www.adplightspeed.com

Utility Vehicle

22 August 2014 | Motorcycle & Powersports News

2013 Model Year

23 ADP MPN 8/6/14 10:47 AM Page 23

24-26 OEMs_Kymco_Layout 1 8/6/14 10:48 AM Page 24

OEMs Kymco

By Brendan Baker

KYMCO Reaches H a l f Ce nt u r y M a r k , Unveils 2015 O ﬀ- r o a d L i n e u p

few years ago KYMCO USA’s Director of Marketing Rick Pawelka said that one of the biggest differences between KYMCO and other OEMs of its size was its history. And as the company celebrates its 50th anniversary the statement seems somewhat apropos. With humble beginnings, KYMCO has come a long way in the last half century, and has consistently punched above its weight in markets all over the globe including here in the U.S. where it just rolled out a new line of off-road vehicles. The Kwang Yang Motor Co. Ltd. with headquarters in Kaohsiung, Taiwan, started in 1963 in a joint venture with Honda, however, they bumped into problems forming the partnership at first because there were still tensions looming from Japan’s occupation of Taiwan and the government was leery of dealing with the Japanese at that time. Therefore, the date of the actual beginning of the company was postponed until June of 1964, which doesn’t make a lot of difference except when you’re celebrating an anniversary. Honda was, in a sense, the biggest investor in KYMCO because it provided the means for the company to begin buying back shares in 1992.

By 2000 KYMCO had bought all of its shares back from Honda, becoming its own entity and one of the largest manufacturers of scooters in the world. Being recognized as a manufacturing powerhouse has had its advantages as the company landed some OEM supplier contracts with a few top Asian and European manufacturers, supplying everything from engines to complete vehicles and many things in between. Coincidentally, Honda’s other partner in Taiwan, SYM, also became independent at about the same time and is now the second largest scooter manufacturer in the country, although, it has yet to reach the kind of export penetration that KYMCO has. On our recent visit to Taiwan for the Taiwan International Motorcycle Show, we made a special side trip to visit KYMCO’s headquarters in Kaohsiung (southern Taiwan), the second largest city in the country. On our walk through the buildings and campus the history of the factory seemed to seep through the walls. Even with modern machines and equipment, the facility had a certain heritage feel to it, like an old ballpark. Many of the workers were on the line producing various models from scooters to things we were not allowed to photograph.

24 August 2014 | Motorcycle & Powersports News

Our interpreter on the tour, Frank Laing, said that the factory would soon move to a new location because the city has grown too close to the old industrial center and city planners have determined that the growth of the city will mean the factory has to move further out of town. Fifty years ago, KYMCO was in the middle of nowhere, but times have certainly changed for the city and company, and for that matter, Taiwan as well. In the U.S. market, KYMCO USA is a wholly owned subsidiary of KYMCO Taiwan and the official importer, offering a full range of scooters and off-road vehicles in its lineup. A great deal of KYMCO’s success in the U.S. has been due to the hard work of the U.S. arm in setting up a quality dealer network and offering enough value and vehicles that dealers and consumers alike can get behind. KYMCO USA has been the leader behind the company’s off-road products along with engineering R&D back in Kaohsiung. Considering that the parent company has primarily been a scooter manufacturer, with sales in excess of $1 billion, KYMCO USA recognized the manufacturing capabilities were already in place for developing a line of off-road models

24-26 OEMs_Kymco_Layout 1 8/6/14 10:49 AM Page 25

12 front and 25x10-12 rear tire/wheel package aids in achieving a log-crossing 10 inches of ground clearance (and we tested this a few times!), and it comes with a decent sized fuel tank at 8.5 gallons so you can venture out for long periods. Some of the other model features include a True Timber CAMO pattern; a TURF model, featuring Tight Turn Turf Control with front differential lock and open, selectable rear differential with differential lock and Turf tires; and the Limited Edition (LE) 50th Anniversary model fitted with alloy wheels, 3,000-lb. winch, and Metallic Gold paint and an exclusive 50th Anniversary KYMCO Emblem.

UXV 500i G which started with smaller ATVs and then later moved into side-by-sides. For 2015, KYMCO USA has an impressive offering of 32 off-road vehicle models, including four versions of its newest mid-sized side-by-side vehicle the UXV 450i along with an innovative take on the UXV 500i that is outfitted with a 5kW generator. On the ATV side, the company has introduced four EPS models of its popular MXU series and two newly designed youth quads. We recently had a chance to test these new vehicles at the Big Buck Farm in Union, South Carolina, home to one of the rounds of the ever-popular GNCC series. Big Buck had a number of attributes that were key to showing the prowess of KYMCO’s new line – especially the 450i. The trails were tight and lined with trees, winding through the rolling hillside.

UXV 450i First impressions of the UXV 450i was that it was one of the smallest side-bysides we had ever seen, but other journalists at the test noted that it was not as small as Honda’s Pioneer 500. Still, it was small enough to fit in the bed of a pick-up. The 450i is definitely narrow enough for maneuvering through tight

trails and you could easily haul a passenger or maybe even two with its bench seat design. The seat was comfortable, however, if you were tall, the steering wheel would have to be tilted up to a steeper angle for the rider to fit in the vehicle completely. KYMCO offers its new side-by-side in four trim levels – UXV 450i ($7,999), UXV 450i TURF ($8,499), UXV 450i CAMO ($8,499) and its 50th anniversary edition UXV 450i LE 50th ($8,699). All are powered by a fuel-injected 443cc SOHC 4-stroke 4-valve liquid-cooled engine, which had surprisingly good spunk for such a small powerplant. The 450 was easily able to climb the steep hills coming out of Big Buck Farm’s creeks that were sporadically covered in mud from the rainstorms that had passed through the area. Most of the time the drivetrain could pull the rider up the hills with the rear differential in the just lock position, however, there were a few occasions when full four-wheel lock was necessary. The power is transferred via shaft drive with push-button on-demand 2WD/4WD and the transmission is a tough CVT with differential lock. On the handling side, it comes with a front and rear independent dual A-arm set-up with 7.5 inches of travel, a 25x8-

Another new addition to KYMCO’s sideby-side lineup, is the innovative, mobile electric power generating UXV 500i G ($12,999) that combines all the features and benefits of a recreational standard side-by-side with a fully integrated, Totally Enclosed Fan Cooled (TEFC) 5kW Generator with a five-point integrated safety system and a GFCI safety circuit breaker to generate all the power you’ll ever need. We ran a pressure washer for six hours during testing and it only used about a bar of fuel. With full digital monitoring and automatic electrical load compensation the UXV 500i G produces consistent, spike-free power.

ATVs On the ATV end, KYMCO’s lineup features 18 models including three 50th Anniversary versions, two come standard with (EPS), electronic power steering for smooth responsive steering at all speeds and less arm fatigue; and three CAMO pattern models, with two featuring EPS. We’ve ridden them all except for the youth models, and while there were occasionally small issues with prototypes we rode, the build quality is as good as anything and the machines keep getting better with each new model. The 700i is a big machine, no doubt, but with EPS it

MotorcyclePowersportsNews.com 25

24-26 OEMs_Kymco_Layout 1 8/6/14 11:28 AM Page 26

OEMs Kymco maneuvers through tight spaces easily with the power assist. At times we forgot which model we were on until we cracked the throttle. The 700cc engine is a beast with a lot of low-end grunt that should make it ideal for customers who want to combine work and play. But it’s not a racing machine by any stretch of the imagination. The MXU 450i is much more nimble and a good overall quad that offers just enough power, but also feels small enough to throw around. The two 450i ATVs feature an automatic CVT transmission, on-demand 2WD/4WD, independent dual A-arm front and rear suspension offering 7 inches of travel, hydraulic dual disc front and single disc rear brakes, 24x8-12 front and 24x10-12 rear tires, 75-lb. front rack capacity, 150-lb. rear rack capacity and a

standard 2-inch receiver with a 1,050-lb. towing capacity. The 50th Anniversary versions of the MXU 450i, 500i and 700i ATVs are outfitted with aluminum alloy wheels (chrome for the MXU 450i, black for the MXU 500i and 700i), 3,000-lb. winch and 50th Anniversary Emblems; the CAMO versions of the 450i, 500i and 700i ATVs all feature a True Timber New

Conceal CAMO pattern. KYMCO USA’s success in the market is not by luck. It’s not just another nameless, faceless Asian fly-by-night manufacturer. More and more dealers are seeing the value proposition that KYMCO offers and will carry the brand alongside the big Japanese brands for customers to see and compare and then make the choice that fits best. Budget isn’t the only thing that wins out either. The features offered on the 2015 models are impressive and rival many other big OEMs at a lower price point. And you never have to worry if they will stand behind their products, because after 50 years, they’ve proven they can keep generations of customers and dealers satisfied. t

27 Vee Rubber MPN 8/6/14 10:50 AM Page 27

28-29 Joe Rocket SPD MPN 8/6/14 10:51 AM Page 28

28-29 Joe Rocket SPD MPN 8/6/14 10:51 AM Page 29

30-35,48 Full-Face Helmets Feature_Products_Layout 1 8/6/14 10:54 AM Page 30

By Greg Jones

In the world of motorcycling, the helmet can be quite a controversial subject. But, no matter what side of the conversation you are on, it’s becoming harder and harder to ignore the advancements helmet companies are making these days, especially with full-face helmets. Today, manufacturers are placing an even higher level of detail on safety, of course, but also on weight, comfort, ventilation, visibility and graphics.

Safety The full-face helmet has a lot of areas where it needs to properly protect the rider wearing it, and manufacturers are turning over every stone to identify ways to improve the safety. “A few things that I’ve seen in full-face helmets are manufacturers coming up with alternatives to the traditional foam EPS internal liners,” says Steve Blakeney, marketing director for Joe Rocket. “There are some really interesting ideas out there, but for the most part they are still cost prohibitive. Until some of these technologies become more affordable, EPS will still be the mainstay.” Expanded polystyrene (EPS) foam has been around for 30 years or so, and most agree it has done a great job protecting riders. However, Blakeney says he has seen internal liner innovation with things such as dampeners and air cushions, but that technology has been primarily in motocross applications. Others have searched for alternatives as well, but EPS has remained atop the safety

30 August 2014 | Motorcycle & Powersports News

materials. “We’re always searching out materials that will manage energy better,” says Chris Sackett, VP of Bell Helmets Powersports Division. “Bell has a team called the Advanced Concepts Group (ACG) that all they do is try to push the limits to test and develop new materials. Every time in the past 11 years, it comes back to EPS foams being the best material that we know of.” While it seems full-face helmets will continue to have EPS liners in them, the shells are where manufacturers are getting more creative. From polycarbonate, fiberglass, carbon fiber and Kevlar, full-face helmets are holding up to higher standards and losing weight. “On a full-face helmet, some of those can get heavy,” says Jim Topper, national sales manager for Vega Helmet USA. “So when you get one down to around 3 lbs. on any kind of lengthy ride that can really help with neck fatigue. A typical full-face helmet weighs around 3.5 to 4 lbs. Making a helmet a half

30-35,48 Full-Face Helmets Feature_Products_Layout 1 8/6/14 10:54 AM Page 31

pound lighter is pretty significant.” The most widely used shell material is polycarbonate, which is a type of plastic made from a molded process. It is less expensive than both carbon fiber and fiberglass, but doesn’t offer the lightweight aspect. Some manufacturers use just carbon fiber or just fiberglass material, and others are now combining these materials for even greater protection and weight savings. While other materials besides polycarbonate are starting to enter the market, Sackett says polycarbonate gets a bad rap. “The trade-off on an opening price point helmet is you’re getting a heavier helmet and not as much venting,” he says. “However, there’s nothing wrong with the safety of the helmet.” As early as five years ago, manufacturers just wanted a full-face helmet in the line-up and accepted the fact that it would weigh a lot. Today, manufacturers are doing more to make helmets lighter. “I think the weight and the shape are the two biggest things that have changed in the last two years,” says Nick LoMonaco, director of powersports for The Fulmer Companies. “When you look at the test reports there’s no real benefit to fiberglass or polycarbonate ABS except for weight and shell shapes.”

Despite weight advantages to using carbon fiber or fiberglass material, most experts don’t see them completely replacing any one material. Rather, those materials will likely remain alternatives because they are more expensive. “You’re never going to get a carbon fiber helmet to retail for under $200,” Topper says. “Folks just want something that’s going to protect their heads and don’t want to spend $400 to $500 on a helmet.” HJC is one of those manufacturers that will combine materials in some of its helmet’s shells. “For our RPHA 10 we used a fiberglass base, but carbon fiber strips to reinforce it,” says Tae Lee, product designer for HJC. “We also used Kevlar, which is light and can protect against penetration. To reduce weight even further we used less resin on the materials to hold the shell together without minimizing the shell’s strength.” These shell techniques can save 150-250 grams.

Functionality While the material type of a full-face helmet varies and may not be of concern to some riders, functionality of the helmet certainly should be a strong selling point. Manufacturers today want the rider to feel as comfortable as possible while wearing a full-face helmet.

“We want to make a helmet so good that you forget that you’re even wearing it and focus on riding,” says Jayson Wickenkamp, director of sales and marketing for Scorpion Sports Inc. “Let’s make sure you have good peripheral vision. Let’s make some really good wicking system liners that are antimicrobial that suck away that moisture.” Helmets like Scorpion’s EXO R2000 have numerous features such as a multimaterial shell, Air Fit cheek pads, a removable liner and anti-fog shield. Riders today are looking for those kinds of features, and if they aren’t, they will be once they try a helmet like this on. “Before we introduced the R2000 we went to MotoGP riders and sponsored them to help us develop our prototypes,” Wickenkamp says. “We got their feedback and used them as our R&D arm for a lot of the development. The riders told us things to change to make it lighter, more aerodynamic, and they really liked the air pump.” The two biggest issues manufacturers have recently addressed surrounding functionality are proper fit and visibility while riding in and out of sunlight. “One thing that almost everyone has started to incorporate are the built-in sun shields that are in addition to the face shield,” Topper says. “Everyone is doing that now to a point

MotorcyclePowersportsNews.com 31

30-35,48 Full-Face Helmets Feature_Products_Layout 1 8/6/14 10:54 AM Page 32

where it is expected.” On these helmets, a mechanism deploys the shield, and when it starts to get dark again, you just push a button that clicks it back up into the shell. Before flip-down visors started becoming popular you had to either opt to wear sunglasses or put on a darker tinted shield for riding in the sun. However, both of these options don’t allow the rider to change back to clear visibility easily. Transition shields on the other hand, allow riders to feel like they are wearing glasses and it adjusts to the light accordingly. “Bell offers a shield that’s done by Transition and we can’t keep that in stock,” Sackett says. “We sell Transition shields because the flip-down visor is tough on your eyes. If you ask an eye doctor they will tell you that looking through two lenses is not ideal. So we opted for the Transition solution, which allows for just the right amount of light.” The shield goes from light to light smoke to a little darker to all the way dark depending on the light conditions, so it is fine tuned. “There’s nothing you can do to match that,” he says. “A flip-down shield adds weight, complexity to the helmet and distortion in the field of view.” With most manufacturers opting for full-face helmet models that incorporate either a sun shield or a Transition shield, its obvious these features have gone past the gimmicky stage and are here to stay. Another growing trend within full-face helmets are cheek bladders that offer riders a better fitting helmet, which is crucial to proper performance. “If you’re building a helmet and you’ve got a good size range, they’re not necessary,” Blakeney says. “But there are some unique facial structures and for those it is great to be able to pump up some cheek pads to keep the helmet properly in place.” Companies such as Bell go one step further and offer customers the opportunity to have their head 3D scanned to create a helmet specifically fit for them. “From a functional standpoint, fit is something everyone should be paying attention to,” Sackett says. “We can scan and 3D map your head and mold/build the helmet EPS to your head.” A third feature that more and more manufacturers are looking at is the physical shape of the helmet. “Even just a few years ago, full-face helmets were just round and didn’t have much personality in the shape of the shell,” LoMonaco says. “That’s something that has changed dramatically in the last couple years. I don’t think we’ll see another full-face helmet come out that doesn’t have some very unique lines to it unless it’s a retro helmet.”

Joe Rocket R1000X The R1000X series helmet by Joe Rocket boasts both excellent graphics and helmet ventilation performance from a combination of 11 vents. Featuring wind tunnel engineered aerodynamics, the fusion of the R1000X’s SNELL & DOT approved polycarbonate composite shell and integrated rear spoiler dramatically reduces both turbulence and drag. The helmet’s CAD sculpted dual density EPS impact absorbing liner encloses the fully removable and washable moisture wicking QwickDry interior to provide a superior fit. Backing the excellent fit is an aggressive ventilation system. Starting with the integrated Quadport 2.0 system comprised of two adjustable front intakes that flow through raised channels and out the two rear exhaust vents tucked under the spoiler, creating a front to back venturi affect, pulling heat and humidity up and out of the shell cavity. This foundation is complimented with yet another three lower intake vents and four lower exhaust vents adding up for a total of 11 vents to ensure a cool, dry ride. Superior optics come in the form of a hard coated, antifog, 3D shield that is actuated by a precision movement, tool-free closure mechanism. Plus every R1000X also includes an additional hard coated/dark smoke shield. Other details include; a removable internal air-guide for enhanced fog resistance, removable chin curtain, and clavicle-friendly sculpted bottom edge gasket that further compliments the R1000X’s comfort and turbulence reducing aerodynamics. ------------

MSRP: $169.99 ------------

For more info: www.joerocket.com

Fulmer LR1 Fulmer’s new LR1 features a lightweight aerodynamic polycarbonate shell wrapped in a new aggressive “Acceleration” graphic available in an array of colors. The new LR1 is packed with the features and comforts including adjustable chin and chimney vents, a UV protective quick release shield, an extreme moisture wicking removable interior and a massive rear deflector to improve aerodynamics and venting. ------------

Solid colors: $99.95 Acceleration Graphic: $113.95 ------------

For more info: www.fulmerhelmets.com 32 August 2014 | Motorcycle & Powersports News

33 HJC MPN 8/6/14 10:55 AM Page 33

30-35,48 Full-Face Helmets Feature_Products_Layout 1 8/6/14 10:54 AM Page 34

Shoei was among the first manufacturers to start focusing on having a defined shell shape and the rest of the manufacturers are following suite. “We are using aerodynamics and proven wind tunnel shapes as the basis of the helmet and then putting our own spin and design elements on to it,” LoMonaco says. “It gives the rider a helmet with a more unique feel rather than an off-the-shelf helmet that looks like a bowling ball on their head.”

Standards It should come as no surprise that a bowling ball on top of someone’s head wouldn’t pass today’s safety standards. So what are manufacturers of full-face helmets following standard-wise? Most abide to one, two or all three of the major standards – SNELL, DOT and ECE. However, they do differ. “The biggest thing with the helmet standards regulation is the adoption of ECE, the European standard,” Topper says. Where ECE differs from DOT or SNELL is in testing. DOT does lab testing and once you pass, you keep paperwork on file. ECE does batch testing each time you run a helmet. “ECE is

34 August 2014 | Motorcycle & Powersports News

Bell Qualifier The Qualifier is the latest full-face introduction from Bell Helmets. With the Qualifier, Bell has leveraged the full breadth of its product line, driving a variety of innovations down to an affordable price point of $109.95. From its aggressive and aerodynamic shell, to Bell’s exclusive ClickRelease shield system, the Qualifier is packed with features passed on directly from Bell’s industry-leading Star. Bell will offer the Qualifier in 10 different graphics and color ways including Metallic Silver, Gloss Black, and the always-popular Matte Black. Available in sizes XS, SM, MD, LG, XL, XXL for $109.95, the Qualifier is DOT certified and weighs 1550g. The helmet also features a lightweight polycarbonate shell, a removable / washable antibacterial interior, an aerodynamic design for exceptional stability, and an adjustable ventilation system for cooling and comfort. A padded wind collar drastically reduces wind and road noise, while contoured cheek pads provide excellent fit and comfort. The helmet has integrated speaker pockets for audio speakers, ClickRelease for a fast, easy and tool-free shield change and NutraFog II for a superior anti-fog, antiscratch and UV protected shield. ------------

For more info: www.BellHelmets.com.

30-35,48 Full-Face Helmets Feature_Products_Layout 1 8/6/14 10:54 AM Page 35

HJC CL-17 The HJC CL-17 helmet has an advanced polycarbonate composite shell that makes it lightweight. The CL-17 provides superior fit and comfort using advanced CAD technology. The optically superior pinlock ready faceshield has a new 3D design that provides 95% UV protection. The shield has an anti-scratch coating and is prepared for the ultimate anti-fog Pinlock insert, which is sold separately. The CL-17 also has a RapidFire shield replacement system that has quick, secure, tool-less removal and installation. The helmet’s “ACS” Advanced Channeling Ventilation System has full front to back airflow that flushes heat and humidity up and out. ------------

Retail price is $139.99 ------------

For more info: www.hjchelmets.com

an ongoing thing,” he says. “It’s a more consistent standard, making sure every time you make this helmet it’s passing.” Not only are more manufacturers turning to the ECE standard, but the AMA is now accepting ECE instead of SNELL. “The biggest difference between SNELL and ECE is the required more dense EPS, which is designed to have more absorption at higher speeds,” LoMonaco says. “That’s where the race aspect comes into it. ECE, unlike DOT or SNELL doesn’t have any sort of penetration test.” Wickenkamp says Scorpion offers two versions of its EXO-R2000: the ECE version and then the DOT/SNELL version. “We did go with the SNELL rating,” he says. “The track guys are so focused on weight and the ECE helmet is inherently lighter, but for the everyday street guys, the SNELL version is still a very worthy accreditation.” Not everyone is sold on the ECE standard just yet. “The ECE seems to be too heavily focused on the G ratings, as far as how many G-forces are transferred to the head,” Blakeney says. “And they do that at the Continues on page 48

MotorcyclePowersportsNews.com 35

36-37 BOC_Aug_Layout 1 7/31/14 4:18 PM Page 36

BEST

Operators CLUB

By Steve Jones

June Year-Over-Year Comparison

n our June year-over-year (YOY) comparison total store sales (Chart 1) were up around 10 percent for both the group and National Norm (NN) dealers. This is a very good sign. Total store gross margins declined slightly, indicating dealers were probably discounting product since expenses were not showing significant increases. Net Operating Profit was fairly flat compared to last year. While there were not a lot of changes in the contribution to gross profit from various departments, it is interesting to note the differences in how the Top 5 split gross profit contribution in unit sales compared to the NN and Group dealers. They continue to get a much higher contribution from their preowned units than new. Average total store staff levels are up over last year. Interestingly, personnel expense only changed significantly for the NN dealersâ&#x20AC;&#x2122; sales department and for the Groupâ&#x20AC;&#x2122;s service department. New unit sales (Chart 2) have increased by more than 10 percent for the Group dealers, but preowned dropped by 3 percent. This could indicate that they had to move out some excess new unit inventory. Margins remained pretty flat, but the Top 5 are getting 4 percent more margin on preowned than the other dealers. Advertising and flooring expenses per vehicle sold (PVS) jumped dramatically for the NN dealers. They are very high, particularly when compared to the Top 5. Advertising expense PVS is diluted some by the higher volume of the Top 5. The preowned-to-new ratio dropped for both the Group and NN dealers. Although they are selling roughly one preowned to every new (which is fairly good). They could be more profitable if they were more aggressive in this area. There is more margin in preowned. The

June 2014 Total Store (TS) Stats

GROUP

CHART 1

GROUP YOY

NATIONAL NORMS

NN YOY

GROUP TOP 5

Total Store Sales

4.2 mil

9.3%

5.2 mil

10.3%

6.5 mil

Total Store Gross Margin

22.4%

-1.3%

25.0%

-0.4%

26.1%

Selling Exp as a % of Total Store

4.5%

0.1%

2.2%

-0.2%

2.7%

Personnel Exp as a % of Total Store

8.4%

0.1%

9.3%

0.1%

5.4%

Admin Exp as a % of Total Store

3.0%

-0.2%

4.6%

-0.2%

2.2%

Facility Exp as a % of Total Store

3.5%

-0.4%

3.3%

-0.2%

2.2%

Total Store Net Operating Profit

3.0%

-0.9%

5.5%

0.1%

6.0%

Contribution to Gross Profit New Sales

26.7%

-0.7%

31.1%

1.0%

17.2%

Contribution to Gross Profit Used Sales

12.0%

-1.5%

13.1%

-0.6%

35.3%

Contribution to Total Store GP: F&I

11.5%

-1.0%

15.2%

1.0%

14.4%

Contribution to Total Store GP: P&A

29.2%

1.0%

24.1%

-0.8%

36.6%

Contribution to Total Store GP: Service

20.3%

2.2%

16.0%

-0.8%

26.7%

Average Total Store Staff YTD

15.99

5.6%

17.59

4.5%

21.96

Gross Profit Dollars per Employee YTD

56,828

-4.8%

72,281

6.4%

68,846

Door Swings: % of Chg from PY

7.6%

8.1%

Fin. Deals: % of Chg from PY

20.6%

13.6%

Cost per Door Swing

$31.57

9.6%

$32.25

13.3%

$51.68

GROUP

GROUP YOY

NATIONAL NORMS

NN YOY

GROUP TOP 5

11.6%

3.6%

CHART 2 New & Preowned Unit Sales New Units Sold Year To Date Preowned Units Sold Year To Date

-3.1%

0.0%

New Units Gross Margin %

11.0%

-1.0%

14.5%

0.0%

14.6%

Preowned Units Gross Margin %

19.6%

-1.3%

19.1%

-0.9%

23.5%

Total Adv & Promotion PVS

$57

1.8%

$109

11.9%

$28

Flooring Exp Per Vehicle Sold

$121

1.7%

$125

8.0%

$68

Sales Personnel Expenses PVS

$340

-0.9%

$261

4.6%

$196

Preowned to New Ratio

0.43

-11.6%

0.55

-3.6%

0.69

Preowned Inventory Turn

9.3

36.6%

5.5

0.0%

14.1

New Inventory Turn Average No. of Cust-Facing Staff YTD Gross Profit Dollars per Employee YTD

-45.0%

2.7

-3.7%

2.8

4.13

6.5%

5.18

5.8%

5.77

88,396

-10.1%

112,036

5.8%

118,823

Top 5 in the group are getting close to 1:1, which is the target for most highlyprofitable dealers. Preowned inventory turns went way up for the Group dealers, but dropped a bunch for new sales. The

36 August 2014 | Motorcycle & Powersports News

Top 5 dealers had 14 turns in preowned. This Group is suffering in the F&I department (Chart 3), which might indicate a need for training or possible staffing issues. Their gross profit is down,

36-37 BOC_Aug_Layout 1 7/31/14 4:18 PM Page 37

CHART 3 as are their penetration numbers. They are way off on gross profit per employee as well. It could even indicate a lack of focus on this department by a number of the dealers in this group. The NN dealers on the other hand are showing much better numbers: up 15 percent in gross profit, up 12 percent in gross profit PVS and up 7 percent in gross profit per vehicle financed (PVF). In addition their penetration has improved in the categories shown. The Top 5 from this Group are rockin’ it with a PVF at $1,072 per copy, but behind the nation in PVS – this is partly due to the fact that they finance a larger percentage of their sales. Parts, Clothing & Accessories (PC&A) is up in sales, gross profit and net over last year (Chart 4). The Top 5 dealers are doing a much better job of selling PC&A at $1,063 PVS. This indicates a welltrained staff with sales and merchandising skills. They lead the pack in margins as well. This department should generate 30-40 percent or more of total store gross profit. Parts turns have dropped for the Group. Four is the typical target, but six is not unusual if you are using an open-tobuy system and stocking the right stuff at the right time. Turns generate income, however, much more than six can indicate inadequate inventory. Service gross profit is up, but margins slipped some for the Group and NN dealers (Chart 5). You want to see labor minus tech compensation equal a gross profit around 70 percent. Less usually means you will struggle to pay the bills for that department. Repair order (RO) volumes and billed hours are up as well showing an increase in sales. The parts sold to RO ratio is not good for the group or the NN dealers. This generally indicates issues with the service advisors – the wrong people in this slot, not enough advisors for the volume or a lack of proper training are all possibilities. Shop performance numbers are decent for NN and the Group, but the Top 5 are really doing well due to having well-trained staff and good managers. As always, the goal here is not merely to inform you of the health of these dealers, but to track your own numbers and compare them with these. t

Steve Jones, GSA senior projects manager, recaps critical measurements

Finance & Insurance

GROUP

GROUP YOY

NATIONAL NORMS

NN YOY

GROUP TOP 5

-2.9%

14.7%

>170K

Gross Profit Year To Date Personnel Exp as a % of DGP Dollars

28.9%

1.4%

19.7%

0.7%

20.4%

Gross Profit Per Vehicle Sold

$226

-15.0%

$484

11.6%

$323

Gross Profit Per Vehicle Financed

$728

3.4%

$841

7.0%

$1,072

% of Finance Penetration

51.7%

-2.5%

57.5%

2.8%

65.3%

% of Service Contract Penetration

27.1%

-3.5%

31.0%

1.0%

36.3%

% of Prepaid Maintenance Penetration

3.8%

-3.0%

14.4%

2.1%

9.7%

% Financed with GAP

15.8%

4.3%

17.2%

1.5%

35.8%

1.16

6.9%

1.3

7.7%

1.43

99,068

-10.0%

156,338

13.8%

151,872

Average No. of Cust-Facing Staff YTD Gross Profit Dollars per Employee YTD

CHART 4 Parts, Clothing & Accessories

GROUP

GROUP YOY

NATIONAL NORMS

NN YOY

GROUP TOP 5

Total PG&A Sales

4.5%

6.4%

>1.4 mil

Total PG&A Gross Profit Dollars

7.0%

6.4%

>470K

Total PG&A Gross Profit PVS

$767

-5.1%

$761

0.0%

$1,063

Parts Margin %

36.1%

1.2%

34.5%

-0.4%

39.7%

Accessories Margin %

33.1%

2.8%

31.4%

1.1%

35.4%

15.6%

9.5%

>100K

Personnel Exp as a % of DGP Dollars

37.3%

-2.0%

34.3%

0.6%

29.3%

% of Inventory Obsolete

17.0%

1.7%

8.5%

0.1%

6.2%

Parts Inventory Turn

4.41

-17.0%

4.19

-1.9%

6.55

Accessory Inventory Turn

2.2

1.8%

2.66

1.9%

3.05

P&A Net Operating Profit Dollars

Average # of Cust-Facing Staff YTD Gross Profit Dollars per Employee YTD

4.25

0.0%

4.74

4.2%

6.51

62,934

4.7%

64,779

3.1%

77,891

GROUP

GROUP YOY

CHART 5 Service CY Total Service Gross Profit

NATIONAL NORMS

NN YOY

GROUP TOP 5

6.1%

5.9%

>230K

Labor Margin %

71.3%

-2.2%

69.4%

-0.4%

79.8%

% of Chg in RO Volume from PY

41.3%

11.1%

% of Chg in Dept NOP from PY

0.6%

-0.2%

Parts Sold to RO Ratio

0.82

-6.1%

0.11

-45.5%

1.05

Billed Hours % of Chg from PY

15.2%

4.3%

Personnel Exp as a % of DGP

52.3%

6.2%

38.9%

1.8%

39.2%

1.85

8.1%

1.68

-0.6%

2.28

Billed Hours per RO Dept Productivity %

77.5%

0.4%

75.5%

2.4%

92.3%

Tech Efficiency %

100.6%

-2.9%

104.9%

6.1%

112.0%

Dept Proficiency %

77.1%

0.5%

75.0%

2.4%

91.8%

5.9

3.4%

6.23

2.4%

8.19

3.8%

$31,893

3.7%

$35,382

Average # of Cust-Facing Staff YTD

Gross Profit Dollars per Employee YTD $28,997

used by the leading 20-group dealers. Access to GSA’s Voyager 5 data analysis & comparison system is available for any dealership for a nominal fee. For more information on Voyager, management workshops, dealer 20-groups, on-site

consulting or training, send an email to steve@gartsutton.com or visit www.gartsutton.com.

MotorcyclePowersportsNews.com 37

38 Service Manager 8/6/14 10:55 AM Page 38

THE

Service

MANAGER

By C.R. Gittere

Becoming a Problem Solver What kind of reputation is your business establishing?

ast year I wrote a couple of articles on the three C’s of service writing – Complaint, Cause, Correction. And I made the case about, Consistency, Customer Service, and Clarity. I spend all day calling dealers and talking with them about their problems and how to resolve some of them. I also still do a little onsite consulting and every time I visit a dealership having customer service issues, I see the same problems. The main problem I believe is lack of training and identifying what customer service is and how to resolve problems. When problems arise most employees will choose one or more of the following approaches: 1) The Ostrich – I call it this because the employee will stick their head in the sand and hope the problems will go away. They will not return customer calls and will not inform the customer of what is actually happening. This usually ends in the customer verbally chewing off all their feathers until they get satisfaction. 2) The Manning – This one is when multiple employees are trying to cover up a problem or issue and they pass the customer around like a football from employee to employee hoping the customer gets tired of calling back. This is usually the case when multiple employees have made a mistake and they are trying to cover for each other. This also happens quite often when employees do not want to bother with a problem because they see it as a distraction to them working with their current customer and making money right now. 3) The Tony Danza – Do you remember the ’80s show Who’s the Boss? This scenario is usually an escalation from the Manning or the Ostrich. The employees will pseudo escalate the problem by taking a message for a manager but not actually passing the message to the manager. Managers and owners are sometimes culpable in this by telling their employees to screen off all calls and by not returning messages. I have actually seen this go as high as the owner of the business getting messages and then reverting back to the Ostrich. We all make mistakes. It is the human element in us. Mistakes like breaking a customers unit or not ordering a part on time are all resolvable issues. If your employees, or you as 38 August 2014 | Motorcycle & Powersports News

an owner, try to take one of the approaches above when you are at fault, it will create animosity between you and your customer. Many times the customer knows you have made a mistake, they know you are giving them excuses and it never ends well for your business in the long term. The Samurai have a rich history in honor and they used to perform Seppuku, which is a form of suicide by knife in the stomach. This kind of thing must have taken a very special kind of person with a very special strength to perform. The questions I have for you as an owner or manager of a department are: Do you have the strength and honor to admit when a mistake is made? Do you give your employees the leeway to admit when a mistake is made? Do you train your employees how to handle customers when there is a problem? Do you attack the problem head on or try the above scenarios because you fear the immediate financial ramifications and ignore the long term effect on your business? It is a different world out there right now. Google reviews and social media allow customers to share experiences that they have had with your business. If an employee makes a mistake, don’t beat them up about it. Show them that the problem can be fixed and teach them how to fix it. I have often heard from customers that they are not upset that the business or employee made a mistake, but rather they are mad that the business tried to cover it up. So do want your business to be known as a Samurai with honor and distinction or an ostrich that sticks its head in the sand and hopes for the best? The reputation of your business is not just built on how you handle the good transactions, but more importantly, how you handle the bad ones. t

C.R. Gittere and the Service Manager Pro team specialize in service department efficiency, elevating customer service and increasing department profitability. His monthly column focuses on best practices and unique ways to get the most out of your service department. More information about Service Manager Pro can be found at www.servicemanagerpro.com.

39 Protective MPN 8/6/14 10:56 AM Page 39

WebSAVVY

40-41 Web Savvy_Layout 1 8/6/14 10:57 AM Page 40

hen’s the last time you Googled your dealership? If you don’t have a plan in place to monitor and manage your online reputation, it is time to take action. An overwhelming majority (79 percent) of consumers trust online reviews as much as personal recommendations. The perception of your dealership in the eyes on the majority of your prospects is truly only as good as your online customer reviews. An online reputation management (ORM) strategy is a key component of your dealership’s digital marketing strategy, and getting started is easy. Just follow this three-step process to jumpstart your ORM efforts! Step 1: Conduct an Online Audit If you haven’t been listening, it’s time to tune into the online chatter about your dealership – prepare yourself for the good, the bad and the ugly. Search your dealership’s name, any nicknames and common misspellings on: • Google • Bing • Yahoo • Facebook • Twitter • Google+ • Yelp • Yext • The Better Business Bureau • Ripoff Report How’d you fare? If you consistently receive negative comments about the same issues over and over again, it may be time to examine those facets of your dealership operations. However, in most cases, negative online reviews can be

By Heather Blessington

Online Reputation Jumpstart Guide

Three Easy Steps to Safeguard Your Online Reputation effectively managed and actually turned into stories of customer service success, which brings us to… Step 2: Clean Up Your Online Reputation Negative reviews are bound to happen, but left unmanaged, they can present a poor online image for your dealership, which is sure to negatively affect your bottom line. Here are six rules to keep in mind as you manage negative reviews: Don’t retaliate: Receiving a negative review is really frustrating and oftentimes very personal. Your first instinct may be to give the reviewer a piece of your mind. Don’t do it! Step away from the keyboard, get a cup of coffee and calm down. No one likes to be on the receiving end of a negative review. However, even if the reviewer is wrong, you can’t bad mouth, yell or curse at them. If you’re solutionoriented, things will calm down soon enough. And, sometimes, your loyal customers and community will come to your defense. Do not delete the post. Show the quality and professionalism of your dealership by addressing the problem. Admit your faults, fix them and carry on. Be real. Respond to the reviewer just as you would if they were standing right in front of you. When you respond to negative reviews, convey in writing that you are committed to finding a solution to better serve that customer. Reach out to them by providing your direct line or email address. Ask for more details and invite them to have a conversation with you directly about their experience. Take the time to understand their point of view,

40 August 2014 | Motorcycle & Powersports News

so you can clear up customer dissatisfaction. Say something. Whether you receive a negative or positive review, post a public response. The lack of a response to a negative review conveys to readers you’re not engaged online and, as a result, the review will hold more merit in the user’s mind. Always respond to a negative review with a positive statement like, “We pride ourselves in 100 percent customer satisfaction; we have contacted this reviewer to address their experience at our dealership.” Realize that some people are just unhappy. Know that no matter what you’ve done to try to rectify a situation, a negative review may be the unfortunate result if you just cannot make that customer happy. It will happen. Apologize, express regret, learn something from it and move on. Ask your best customers for reviews. Diminish the impact of negative reviews by adding legitimate positive reviews. In our busy world, happy customers forget to take the time to share their experience, yet most of them will happily do so if you simply ask. Some dealers offer customers an incentive to post a review, which is another proactive strategy to consider. Step 3: Take Advantage of ORM Tools Monitoring your online reputation doesn’t have to be a full-time job. Take advantage of the following ORM tools to act as your online eyes and ears. Google Alerts. Google Alerts is one of the most effective tools for online

40-41 Web Savvy_Layout 1 8/6/14 10:57 AM Page 41

reputation management. Set up alerts for any search terms you want, such as your dealership name or targeted phrases relevant to your niche, then specify the types of results you want and how often. You can even get alerts as mentions occur for real-time online reputation management. Google sends alerts directly to you in an email digest, so there’s no ongoing legwork involved. The best part? Google Alerts is free. SocialMention. Another great free tool is SocialMention, a search engine that scours the social universe for mentions of your dealership name or any other search phrases you want to track. A pro is that the results are really detailed, with a breakdown of the sources and users, ratings of how positive or negative the conversation is, and its overall reach. A con is that SocialMention doesn’t offer automated alerts, so you’ll have to actively check your dashboard at regular intervals. Following these strategies will help you maintain a healthy online reputation, and you’ll rest easy knowing your Google search results will tell the true story of what it’s like to work with your dealership. t

Heather Blessington is a nationallyrenowned speaker on social media strategy and a digital marketing veteran with more than 20 years experience. As an MPN columnist for Web Savvy and CMO at ARI Network Services, Blessington is dedicated to educating powersports dealers about digital marketing best practices.

MotorcyclePowersportsNews.com 41

42-45 Tires_Layout 1 8/6/14 10:59 AM Page 42

Safe riding depends on selecting the right tires, inspecting and maintaining them and replacing them as necessary. Not all motorcycle tires are created equal. Despite the fact that they are all round and black, motorcycle tires come in many different styles manufactured with different treads, compounds and durability suited for specific riding applications. The ideal tire might be one that combines the grip of a racing tire with the feel of a sport tire, or the comfort of a sport-touring tire with the longevity and wet grip of a touring tire. And today, tire makers have done a bit of this type of genetic engineering to balance these forces in specific ways that allow riders to fine-tune their tires to their bikes and the types of riding they do. This month we focus on touring/sportbike tires. Those who ride sport tourers such as the Yamaha FJR1300, Kawasaki Concours 1400 or many BMW models expect their bikes to carry them long distances at higher speeds, in comfort, and to brake and handle well. A sport tourer is light, but powerful, so its rider will be willing to sacrifice some degree of mileage for grip and feel. The tire will not need as great a load capacity or wet-weather capability. An H-rated tire may be well within the needs of a touring bike, but a sport-touring rider may want the additional safety margin of a V- or Z-rated tire. This month’s Street Tires Product Focus features several great examples of tires a sport-touring rider would enjoy.

Avon Tyres Cobra The ultra quiet Cobra incorporates sport tire technology for nimble handling, incredible stability and long life making it perfect for touring. Its special construction, unique “snakeskin” sidewall and aggressive tread pattern make the Cobra tough enough for heavy loads while offering great performance and style. Extra wide custom sizes are also available, as well as several Whitewall sizes including a new 21-inch size coming soon. Avon says it will introduce 13 new 15- to 21-inch sizes this September for their Cobra tire line designed for the power cruiser, touring and custom market. ------------

For more info: www.avonmoto.com

Michelin Pilot Power 3 Michelin’s Pilot Power 3 is its latest sportbike street tire with an all-new dual compound. Michelin’s patented 2CT+ technology extends harder compounds underneath the softer shoulder offering tread rigidity and cornering stability, especially when accelerating out of turns. Its semi slick tread design maximizes the contact patch for excellent dry grip, while its new tread compound offers maximum wet grip and superior braking. Riders who are ready to step up from the Pilot Power 2CT will experience increased performance capabilities and 20 percent more tread life in the Pilot Power 3. ------------

For more info: motorcycle.michelinman.com 42 August 2014 | Motorcycle & Powersports News

43 Starbrite MPN 8/6/14 11:00 AM Page 43

42-45 Tires_Layout 1 8/6/14 10:59 AM Page 44

Kenda K676 RetroActive

Vee Rubber 302 Twin Tire

Kenda’s K676 RetroActive is a V-rated sport bias belted tire for the classic bikes of the ’70s and ’80s. The tread pattern is designed for all-weather riding conditions. The K676 utilizes a new rubber compound for improved durability and mileage, and an improved crown radius for a larger footprint in corners. The K676 comes in the following sizes: 120/80B-16 130/90B-16 150/80B-16 110/80B-17 140/80B-17 150/70B-17 100/90B-18 120/90B-18 130/80B-18 100/90B-19 Coming soon 110/70B-17F and 130/70B-17 ------------

Vee Rubber’s 302 Twin line up of motorcycle tires are quickly becoming the choice for the metric cruiser and chopper style of motorcycles. The Twin line up of tires offers excellent all weather riding traction, high load carrying capacity for 2up riding and any luggage needed for extended trips with a new rubber compound for long mileage. The 302 Twin tire has a tubeless construction, is DOT H-rated and has a front tire application with monster rears. It is also very affordable and available in all metric cruise sizes. Sizes: Twin Front 90/90-17 49H 100/90-19 57H 90/90-19 54H MH90-21 56H MH90 B16 72H 140/40-32 57H 140/40-30 57H 120/70-21 62H

For more info: www.kendatire.com

------------

For more info: www.veerubber.co.th

44 August 2014 | Motorcycle & Powersports News

42-45 Tires_Layout 1 8/6/14 10:59 AM Page 45

Shinko Tire USA 016 Verge 2X Compound Radial With Shinko tires all new dual compound technology you’ll get the best of both worlds, superior traction when needed, with all the mileage. Sipes added for better wet grip and even wear. The full steel-belted rear tire and Aramid front tire will provide high-speed stability and strength. The tires' tread profile is designed for quick transitions and more lean angle. Front tires: List Price $115.95-116.95 Rear tires: List Price: $198.95-211.95 ------------

For more info: www.shinkotireusa.com

View more motorcycle street tires at www.motorcyclepowersportsnews.com

VRM-387 Traveler Vee Rubber’s VRM387 Traveler is one of the most affordable sport touring tires available. Its tread is designed to disperse water from the surface for excellent wet weather riding. Specially formulated deep tread design extends mileage. The tire’s advanced compound, for both center and sidewalls, create even wear throughout the tire’s life. Weight carrying capacity is designed for 2-up riding and all the luggage needed by the rider for extended trips. Sizes: 120/70 R17 63V 190/50 R17 78V 180/55 R17 77V 120/60 ZR17 55W 160/60 ZR17 69W 170/60 ZR17 72W ------------

For more info: www.veerubber.co.th MotorcyclePowersportsNews.com 45

46-47 Hand Tools 2 8/6/14 11:01 AM Page 46

Essentials Hand Tools Pivot Head Hex and Star Tool

Oil Filter Inspection Tool Goodson Tools & Supplies for Engine Builders Goodson recently introduced a redesigned Oil Filter Inspection Tool used to cut open an oil filter after an oil change or high stress engine operation. By cutting open the filter and inspecting it for trapped contaminants, engine problems can be quickly diagnosed. Most oil filters will trap anything larger than 24 to 30 microns, although some trap particles as small as one micron. When you inspect the oil filter, you can actually see what is getting trapped. This can be anything from silicone sealants to broken mechanical parts to worm materials and more. Metal shavings can point you toward mechanical problems that could cause total engine failure. ------------

For More Info: www.goodson.com

Bondhus Bondhus has introduced a new line of Hex•Pro Hex and Star tip pivot wrenches. These tools are built for industrial professionals and have a matte chrome finish to prevent corrosion. They have long handles to provide extra reach, while the pivoting head can be used at any angle, allowing access to fastener heads in hard to reach locations. Individual tools are available in Inch (1/8”-3/8”), Metric (3mm-10mm) and Star (T15-T55) tip sizes. A wide range of sets are also available. All Bondhus Hex•Pro tools have a lifetime warranty. ------------

For More Info: www.bondhus.com

Crankshaft Tool RV Service Tools, LLC Rebuild twin and triple cranks with this specialty crankshaft tool. Set degrees accurately. Standard kits are available from the RV Service Tools website and special sizes can be built to order. ------------

For More Info: www.rvservicetools.com

Heavy-Duty Cylinder Hone Goodson Tools & Supplies for Engine Builders This heavy-duty hone will hone cylinders in a range from 2-1/2” to 51/2” and comes complete with a 2” drive shank and 12” extension shank. It features 5/8” – 11 thread and a heavy-duty universal joint. This hone can be used in either a 1/2” non-pistol grip drill or a manual hone cabinet. Goodson’s hone works with both Goodson HN- and Sunnen AN-style honing stones. ------------

For More Info: www.goodson.com

46 August 2014 | Motorcycle & Powersports News

46-47 Hand Tools 2 8/6/14 11:01 AM Page 47

Product Spotlight Ultimate Xtreme Clean Star brite Star briteâ&#x20AC;&#x2122;s Ultimate Xtreme Clean, an all-purpose, allsurface cleaner and degreaser, is formulated to blast away the toughest, grimiest, nastiest grease stains or oil spills you will encounter on the bike, in your garage or anywhere else. The unique formula utilizes special chelating agents that break the bond between grime and the surface without the need for heavy scrubbing. Xtreme Clean is safe for use on all motorcycle, marine, automotive and home surfaces including fiberglass, vinyl, metals, painted surfaces and even canvas fabrics.

Flywheel Puller Dennis Stubblefield Sales, Inc. The MP#26 40mm x 1.5 Right Hand Thread (female) Flywheel Puller fits most 2009 - present Suzuki GSXR1000 street bike models. It may also fit some Marauder and VS Intruder street bike models as well as some imports such as CF Moto and Kymco engine models. Made in the US. ------------

MSRP: $70.99/each ------------

For More Info: www.dssalesusa.net

------------

For More Info: www.starbrite.com

MotorcyclePowersportsNews.com 47

30-35,48 Full-Face Helmets Feature_Products_Layout 1 8/6/14 10:54 AM Page 48

Continued from page 35

expense of the shell integrity – how well the shell stays together on initial impacts. That’s what we like about the SNELL/DOT combo, they’re not giving up too much of one to have the other. ECE isn’t a bad standard, but it is way too over-focused on one aspect of what saves you in a crash.” Bell follows its own standards using aspects of ECE, DOT and SNELL. “What we do is take a certain standard like SNELL and ensure that we beat that by a certain margin,” Sackett says. “We do our own batch

testing. ECE mandates batch testing, but DOT and SNELL don’t.” The Bell standard tests a low-speed impact, mid-speed impact, high-speed impact, as well as a rotational impact. Bell tests at 3 meters per second, 4 meters per second, 6 meters per second and 7.75 meters per second. “The standard for SNELL only calls for 7.75 meters per second and DOT calls for 6 meters per second,” he says. “We try to get the lowest energy possible at all those different speeds, and that’s something no one else does and no

other standard dictates.” Regardless of the standard a fullface helmet has passed, what materials are in the shell or how many features it boasts, customers need a helmet they like, can afford and that fits properly. “For somebody who is shopping for a helmet, whatever brand it is… make sure it fits,” Blakeney recommends. “If a helmet is too big and it’s floating around on you, you jeopardize your safety.” Which is the whole point in the first place. t

Vega Stealth F117 This CAD designed aerodynamic helmet limits wind buffeting ensuring a much quieter ride. The Stealth F117 is also lighter than many full-face helmets with the carbon fiber version weighing in at just 1350 grams. The F117 is loaded with desirable features. The optimally placed 3-stage top vents, when fully opened, allow for refreshing air to flow through and out the generous rear exhaust ports. The front chin vent works in conjunction with the anti-fog face shield to virtually eliminate fogging up. The face-shield also has an anti-scratch coating and Vega’s simplest shield change-out mechanism ever. The helmet further features a tinted interior drop down sun shield that is spring loaded allowing for simple operation even with gloved hands. The Stealth F117 is available in eight sizes (XXS- XXXL) utilizing two shells. The interior comfort liner made from DuPont Coolmax is removable and washable with communication ready cheek pads. The helmet meets all DOT FMVSS 218 Standards and has been certified to European standard ECE 22.05. ------------

MSRP: $129.99 Solids, $139.99 Graphics, $259.99 Carbon Fiber ------------

For more info: www.vegahelmet.com

Schuberth SR1 White/Black Schuberth North America has announced that it is further expanding its helmet offerings by adding a new colorway for its flagship SR1 helmet, a gloss white shell with stylistic blacked-out chin vents, top vents and spoiler. The included clear visor is easily interchangeable with a dark smoke accessory visor for an even more dramatic blacked-out look. Schuberth’s SR1 sport racing helmet was engineered to be the ultimate motorcycle racing helmet. The shell design was created in Schuberth’s aeroacoustic wind tunnel for maximum aerodynamic performance, ventilation and noise reduction. The variable position spoiler mounted at the rear of the helmet to allow riders to adjust the airflow over the helmet to match their riding position. The shape offers excellent stability at speed, leading to greater rider confidence and comfort. The SR1 is constructed from Schuberth’s patented S.T.R.O.N.G fiber material with carbon reinforcements and specially optimized EPS foam for extremely lightweight protection. The patented anti roll off system, or A.R.O.S., prevents the helmet from rolling off the riders head in the event of a crash. The interior liner is removable, washable, wicking and antiodor, and as with all Schuberth motorcycle helmets, the SR1 also features reflective accents for maximum visibility at night. The Schuberth SR1 White/Black is DOT and ECE certified and includes a 5-year warranty, 3-year service plan, and is eligible for the Mobility Program. ------------

MSRP: $899.00. ------------

For more info: www.schuberthnorthamerica.com. 48 August 2014 | Motorcycle & Powersports News

49 Vroom MPN 8/6/14 11:02 AM Page 49

50-51 techtips_August_Layout 1 8/6/14 11:03 AM Page 50

TECH

Tips Cyclepedia Press LLC

CV Axle Boot Repair

 Remove the CV axle and pull straight out.

he CV axle boot is a weak link in the final drive systems of four wheel drive ATVs and Side-by-Side vehicles. If the boot is damaged the joint can lose its lubricating grease and pick up debris to contaminate the joint. If the boot damage or deterioration is not addressed it will lead to a much more expensive fix than a boot replacement. If the axle makes a clacking or popping noise, especially when turning, they may be worn out to the point of requiring a rebuild or replacement. There are three different levels of CV axle service: boot replacement, rebuild and axle replacement. A boot replacement service may be all that is needed to return the vehicle to operation as long as the damaged boot is replaced before the joint bearings have been damaged. The axle will need to either be rebuilt with new components or replaced as a whole if the bearings have worn out or other hard parts have been damaged. Not all OEMs provide spare parts for CV axle rebuilds. Fortunately CV axles are a common component and several companies sell new, re-manufactured and heavy-duty CV axles.



Make sure the inboard joint has smooth plunge movement.



Remove the CV axle by gripping it firmly and pulling it straight out of the final drive or differential unit. The inboard end of the axle is secured by a circlip and may take a firm quick pull to free. Inspect the axle seals in the differential or final drive unit and be prepared to replace them if they are in poor condition. Inspect the axle shaft and splines for damage. Make sure the joints move smoothly. If the joints do not move smoothly the CV joints should be disassembled and inspected further or the axle should be replaced as a unit.

 Remove large inboard snap ring to free bearing from race.



The inboard CV joint (long case) is a plunge joint that allows movement along the axis of the axle. This allows the axle to deal with changes of geometry created by the moving suspension. Make sure the inboard joint has smooth plunge movement and the outboard joint does not move in this way.



Removing the boot clamps and freeing the boots from the joints is required. The plunge joint is often held in place by a large snap ring. Remove this snap ring and free the plunge bearing from its outer race.

 Remove the snap ring to free the plunge bearing from

the axle shaft if necessary.

50 August 2014 | Motorcycle & Powersports News



Remove snap ring to free bearing from axle shaft.

50-51 techtips_August_Layout 1 8/6/14 11:03 AM Page 51





Thoroughly grease bearings and assemble with new snap rings.

Drive bearing race off the shaft.



Drive the inner bearing race off the shaft if the inner and outer bearing races come off as a set. Only apply force against the inner bearing race to prevent damage to the bearing. Wipe out the CV and clean it out with contact cleaner to get rid of the remaining old grease. Also, remove any old grease from the axle shaft. Inspect the CV components and replace them as needed. Allow the CV joint to air dry.



Thoroughly grease the CV bearings where they contact their races and axle shaft splines. Wipe away any excess grease on the edge of the housing where the boot will slide on. Assemble the CV axles with new snap rings. Secure the big end of the boot to the CV joint housing. Bleed any excess air from the small end of the boot and install the small end clamp. Apply grease to the axle seals and splines. Install the axle and previously removed components. Replacing a CV axle with a new or remanufactured component is certainly the fastest way to get your customer back on their vehicle, but in some cases it can be cheaper, too. OEM prices and parts availability for CV axles can vary dramatically from one brand to the next. Some quick research may show a remanufactured or aftermarket axle makes more economic sense than rebuilding the axle piece by piece in the service department. t

Cyclepedia Press LLC authors powersports service manuals, a specification database and training modules to help technicians efficiently service ATVs, motorcycles, scooters and side by sides. Each month Cyclepedia examines real life shop scenarios with recommended tech tips for handling the problems encountered. For more information about Cyclepedia manuals and professional products visit www.cyclepedia.com.

MotorcyclePowersportsNews.com 51

52 F&I_August_Layout 1 8/6/14 11:04 AM Page 52

Finance Insurance

By Steve Dodds II

What You Don’t Know Could Hurt You

taying on top of legal requirements is an almost impossible task. I’ve worked in and around the powersports industry for half my life, in every position within the sales and finance departments, so I know how difficult this is. It’s a difficult job for anyone. I spoke recently with a person in upper management of one of the organizations in our industry that monitors state and federal laws and keeps dealerships informed. He said that his company has 30 full-time lawyers who monitor every pending state and federal regulation in order to make sure that they have a good understanding of the current laws and upcoming changes. It’s no wonder a single finance manager can’t keep up with every law and know when it changes. This is one of the reasons that I go through the most common federal requirements each time I’m in a dealership or workshop event. Recently, I have found the Adverse Action Notice requirements to be the most misunderstood. Most finance, sales and general managers believe that as long as they send each customer to at least one finance source, the bank will send out the notice and then they will be covered. This was true until the Equal Opportunity Act was changed in 2011. Here is the regulation, as it is commonly understood now:

Who is required to give an Adverse Action Notice? (Excerpt from) Part 202 – Equal Credit Opportunity Act (l) Creditor means a person who, in the ordinary course of business, regularly participates in a credit decision, including setting the terms of the credit. The term creditor includes a creditor's assignee, transferee or subrogee who so

participates. For purposes of §202.4(a) and (b), the term creditor also includes a person who, in the ordinary course of business, regularly refers applicants or prospective applicants to creditors, or selects or offers to select creditors to whom requests for credit may be made. In other words, your dealership and anyone there who acts on behalf of a person who makes a decision regarding credit, or who collects information and sends that information to a lending institution, is considered a creditor under the Equal Credit Opportunity Act. (Excerpt from) Section 701 (d) – Equal Credit Opportunity Act A creditor must provide to applicants against whom adverse action is taken either: (1) A statement of reasons for taking the adverse action as a matter of course; or (2) a notification of adverse action which discloses the applicant's right to a statement of reasons within thirty days after receipt by the creditor of a request made by the applicant within sixty days after the written notification. This means that YOU, as a creditor, are responsible for mailing out an Adverse Action Notice – NOT the banks or lending agencies. When is the notice needed? It is required to be sent any time that approval is not granted or when approved terms do not match requested terms. When must the notice be sent out? If the customer is turned down with no counteroffers, the dealership has 30 days from the date of application to send out the notice. If there is a counteroffer made by the bank, such as asking for a cosigner or for more money down, the dealership has 90 days from the date of the counteroffer to send out the notice.

52 August 2014 | Motorcycle & Powersports News

What information must be included in the notice? 1. A statement that the adverse action has happened 2. Creditor name and address 3. An ECOA anti-discrimination notice 4. A statement of why the specific action was taken How can the notice be delivered? It can be handed to them in person, mailed, or sent electronically if you follow the E-sign regulation and obtain customer permission. How long must documentation be kept, and what must be kept? The dealership must keep a copy of the following documentation for 25 months: 1. Credit application 2. A written record of any information used in the credit decision: denial from the bank, credit file, proof of income, or any other information gathered 3. A copy of the notice with a record of how it was delivered To view the complete Equal Credit Opportunity Act, visit http://tinyurl.com/lyarp9d t

Steve Dodds II is a moderator, trainer, and consultant for Gart Sutton and Associates with a focus on sales and finance departments. If you have questions about what he or one of our other talented consultants can do to help you meet and exceed your goals, contact us at info@gartsutton.com. Legal Disclaimer: Please contact your dealership attorney if you have questions about the interpretation of any legal requirements.

53 SEMA MPN 8/6/14 11:05 AM Page 53

54-55 Classifieds_Aug 8/6/14 11:07 AM Page 54

MarketPlace Find out more about the classified advertisers in this issue online at www.motorcyclepowersportsnews.com/resourcecenter.

54-55 Classifieds_Aug 8/6/14 11:07 AM Page 55

ADP Lightspeed . . . . . . . . . . . . . . . . . .23 Dominion Enterprises . . . . . . . . . . . . .47 Duro Tire/Wheel . . . . . . . . . . . . . . . . .45 EMGO International . . . . . . . . . . . . . . . .9 Fulmer Helmets . . . . . . . . . . . . . . . . . .34 Gibbs Technologies Inc. . . . . . . . . . . .C3 HJC America . . . . . . . . . . . . . . . . . . . . .33 K & L Supply Co. . . . . . . . . . . . . . . . . .C4 Kuryakyn . . . . . . . . . . . . . . . . . . . . . . . . .5 Marketplace Events/AIMExpo . . . . . . .1 MBA Insurance . . . . . . . . . . . . . . . . . . . .8 Motor Trike . . . . . . . . . . . . . . . . . . . . . .13 MTA Distributing . . . . . . . . . . . . . . . . . .3 Mustang Motorcycle Products . . . . . .19 Namura Technologies . . . . . . . . . . . . .41 Protective Asset Protection . . . . . . . .39 Red Line Synthetic Oil . . . . . . . . . . . . .26 Rizoma USA . . . . . . . . . . . . . . . . . . . . . .7 SBS Friction . . . . . . . . . . . . . . . . . . . . .51 Scorpion Sports Inc. . . . . . . . . . . . . . .35 SEMA . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Service Manager Pro . . . . . . . . . . . . . .46 Star brite . . . . . . . . . . . . . . . . . . . . . . . .43 Sullivans Inc./Joe Rocket . . . . . . .28, 29 Vee Rubber America . . . . . . . . . . . . . .27 VP Racing Fuels Inc. . . . . . . . . . . . . . .C2 Vroom Network . . . . . . . . . . . . . . . . . .49 Wizards Products/RJ Star Inc. . . . . . .18 XY Powersports . . . . . . . . . . . . . . . . . .44 Zep Inc./Original Bike Spirits . . . . . . .11 Zurich . . . . . . . . . . . . . . . . . . . . . . . . . .15

TO ADVERTISE IN CLASSIFIED MARKETPLACE CALL Roberto Almenar 330-670-1234 ext. 233 ralmenar@babcox.com

MotorcyclePowersportsNews.com 55

www.motorcyclepowersportsnews.com/resourcecenter

Ad Index

56 pitpass_August_Layout 1 8/1/14 2:28 PM Page 56

has to offer is so vast, so deep and so diverse it touches almost anyone who is willing to venture out here.” Adding the layers of world history onto the first-rate motorcycle tour made for a once-in-a-lifetime ride.

Motorcycle Tour of Israel By Alisa Clickenger

If you’ve ever wanted to take a motorcycle tour in a land with a mild climate, fabulous roads, great infrastructure and countless layers of world history, Israel is the place you want to explore. Tamar Mediterranean Mototours recently completed its first motorcycle tour in conjunction with Edelweiss Bike Travel. It was the first-ever guided motorcycle tour of Israel organized by an Israeli company, and despite what you hear on the news about that part of the world, it was a terrific experience. “I decided to join together my two passions; my love for Israel and the Israeli people, and my love for motorcycling. Israel and Israelis give a truly unique experience to any kind of adventure tourist, not only to the religious oriented one,” said Eytan Magen, managing director of Tamar Mediterranean Mototours. “The large opportunity that this small piece of land

Penton - The John Penton Story John Penton and his brothers ran a motorcycle shop in Amherst, OH. Penton was a championship rider as well as fabricator and mechanic. He chased the national enduro championship in 1958, riding in events all across the eastern U.S. and Canada and winning numerous ones. In the spring of 1959, Penton successfully took up the challenge of

competitive bikes. In the ‘60s, he served as the eastern distributor of the Swedish brand Husqvarna, a motorcycle that revolutionized the sports of motocross, enduro and desert racing in the U.S. When his attempts to convince Husky to produce a smaller, lighter motorcycle fell on deaf ears, Penton created his own design and commissioned KTM, a small moped and bicycle maker in Austria, to build it. The motorcycle was an instant success in off-road competition and led KTM to expand its efforts in the motorcycle realm, initially in conjunction with Penton and ultimately on its own. Today, KTM is the largest manufacturer of motorcycles outside of Japan, and winning championships around the world. Fast-forward to the fall of 2010, Penton enthusiast Jack Martin contacted Todd Huffman to suggest a film project about John Penton’s life. Martin had come to believe that a documentary of John Penton’s championship enduro career, his development of the Penton motorcycle line and the tremendous effect that had on the sport of off-road motorcycling would be a wonderful demonstration of American ingenuity, entrepreneurship and family values. Thus, in 2014, the movie Penton - The John Penton Story became a reality.

Introducing the EGO

breaking the record for transcontinental travel held by the legendary Cannonball Baker, and became a motorcycling legend himself. In the ‘60s, Penton forayed into the international arena, competing for the U.S. in the International Six Days Trial numerous times. It was his trips to Europe to compete that planted the seeds of his desire to build a better motorcycle. He realized the heavy machines like the Harley’s, BSA’s and Triumph’s could be beaten by smaller, lightweight bikes, a revolutionary idea at the time. He utilized the German built NSU and BMW motorcycles as the basis for his

56 August 2014 | Motorcycle & Powersports News

At the heart of this thoroughbred is an electric motor which produces an astounding 195 Nm torque from 0 RPM to redline, an electronically limited 150 mph (240 km/h) and a 0 – 100 time of under 3 seconds. All on just pennies’ worth of energy. The Italian electric street bike ENERGICA is being booked online for a cool €25,000 / $34,000 + taxes. t

C3 Gibbs MPN 8/6/14 11:10 AM Page C3

C4 K and L MPN 8/6/14 11:11 AM Page C4