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w Apparel University Part II
NOVEMBER 2014 VOL. 40 NO. 11
11.2014
w Dealer Expo Preview
w Barber Vintage Festival
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Contents
Volume 40 Number 11 MotorcyclePowersportsNews.com
EDITORIAL
Selling Vintage
By Margie Siegal Editor – Brendan Baker bbaker@babcox.com
Dealer tricks of the trade for selling vintage items during the holidays
Editor-at-Large – Robin Hartfiel robinhartfiel@gmail.com
Dealership Operations What’s On Your Wishlist?
Managing Editor – Greg Jones gjones@babcox.com
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Columnists & Contributors
4
The Road Ahead by Brendan Baker
Dealer Expo Preview Shifting Gears
Steve Jones Alisa Clickenger Jim Woodruff Margie Siegal CJ Pedler Bert Alanko Cyclepedia Press LLC Race Tech
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All the News that Fits by Robin Hartfiel
Off-Road Categories Top Charts Again
ART
18
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Graphic Designer – Kelly Gifford kgifford@babcox.com
NPA Pre-owned Monthly Recap by Jim Woodruff
A Fundamental Question for the Service Department
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20
Dealer Management by CJ Pedler
Dealer New Units in Stock
28
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Inventory Report by CDK Global, formerly ADP Lightspeed
Classic Cycles, Inc.
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Official Publisher of the AIMExpo Show Daily and Show Directory
30
Destination Dealership by Margie Siegal
Re-Framing How to Sell Apparel
32
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Apparel University by Alisa Clickenger
Five Minutes with the Insurance Man
38
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Finance & Insurance by Bert Alanko
September PG&A Department Performance
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Best Operators Club by Steve Jones
Suzuki Gets Naked in Las Vegas
44
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OEM Update by Robin Hartfiel
Replacing Gaskets and Seals
Stocking Stuffers ................................................................... 26 What is the biker in your family going to want?
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Tech Tips by Cyclepedia Press LLC
On Any Sunday
Product Focus 46
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Equipment and gear that every shop or garage needs
56
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Pit Pass by Robin Hartfiel
Service Equipment
Suspension ............................................................................... 48 Shocks to keep the ride smooth
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 November 2014 | Motorcycle & Powersports News
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THE
Road AHEAD
By Brendan Baker
ADVERTISING SALES Publisher Sean Donohue
sdonohue@babcox.com (330) 670-1234 ext. 206
Display Advertising Sales Roberto Almenar Bobbie Adams Doug Basford David Benson Dean Martin
What’s On Your Wishlist?
I
t’s been a tough few years in this industry for a lot of people. Whether you’re a dealer that has struggled to find financing for customers and to keep the doors swinging when the world seemed like it was upside down, or you’re a manufacturer that had to scale back operations and hold off on introducing new products because the market was just not there. Times were definitely tough, and they still have been a challenge for some dealers who are struggling to find a foothold in this new economy. But the silver lining is that it appears from several indicators things may be finally turning around for the better. NADAguides’ most recent Powersports Market Update from September-October says that consumers continue to be intrigued by new models, as the majority of sales reported were new models. OEMs have gradually been getting back in the game and are releasing 2015 models and getting a good buzz from the media to consumers about them. Something that has been lacking for a while. You only have to look at the Kawasaki H2R and Ducati Scrambler that were recently unveiled to see the fervor surrounding them.
However, I talked to one source at last month’s AIMExpo in Orlando who pointed out that we are where we were about 10 years ago. Have we have fallen that far back? It may not be such a bad thing. NADA shows that key indicators are the consumer price index and the unemployment rate. If I was writing this about 10 years ago, things would have been going like gangbusters. But we are almost into 2015, and we are looking at sales that are getting better, but not what they were in the glory days. But I think that we are smarter now and when we do build back to the higher levels, we will be all the better for it. No longer are we giving away vehicles on a signature and hope that the customer will pay for it. No longer are customers throwing credit around like it was monopoly money either. Another upside going into winter, according to NADAguides, is that UTVs, ATVs and cruisers have remained active segments. Winter presents many challenges for dealers, which is why we decided to bring back the Holiday Gift Guide with a little twist for incorporating vintage themes. It seemed to do the trick a decade ago, so here’s to a successful holiday selling season! t
Brendan Baker, Editor
4 November 2014 | Motorcycle & Powersports News
Jim Merle Glenn Warner John Zick Don Hemming
ralmenar@babcox.com (330) 670-1234, ext. 233 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.
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Inside the Industry Husqvarna Unveils Three New Models at EICMA Husqvarna unveiled three new models at the Italian motorcycle Expo (EICMA) – models that the company says give a clear understanding of the future of the iconic brand. With 111 years of heritage in both street and offroad motorcycling, Husqvarna makes its return to the street segment with a new large displacement, single-cylinder model as well as two modern concept models. Expanding Husqvarna’s street offerings, the new large displacement, single-cylinder model street bike will offer premium characteristics while maintaining the Swedish tendency towards functional design. True Husqvarna, and faithful to the brand’s core values, this new model that was unveiled at EICMA shows it has stateof-the-art technology and a rich sense of heritage. The two concept models offer a clear
glimpse of the future direction of the Husqvarna brand within the street market. The prototypes showcase lightweight construction and functionality, premium quality hardware and uncompromised design.
DataOne Partners with Consumer Research Solutions DataOne Software, a division of Dominion Dealer Solutions and a provider of automotive data and software solutions, is joining the partnership of the Motorcycle Industry Council (MIC) and
Consumer Research Solutions (CRS) to provide VIN decoding and vehicle identification for the model attribute matrix – a new MIC/CRS tool for the powersports industry. The Model Attribute Matrix, also known as MAX, combines MICappended data with CRS model attributes for powersports dealers. MAX includes data from motorcycles, scooters, and recreational off-highway vehicles like ATVs, dirt bikes and utility vehicles. Powersports dealers using MAX data have access to more than 40 attributes from nearly all leading brand models for the past ten years, allowing them to exchange model information and ensure product compatibility. Combining the VINBasic Powersports VIN decoding and Vehicle Identification solutions with MIC’s MAX product, DataOne has supplemented the existing data by allowing MIC member businesses to identify vehicle models.
RE: BACKFIRE RE: Ace Cafe Lee Rocker Concert at AIMExpo
RE: Selling To Women (August Issue)
I wanted to personally thank each one of you, and as a group, for partnering with Ace Cafe on the Lee Rocker show, and for all of your combined efforts on marketing, media placement and social amplification. Thank you for promoting Ace, and each other, as well. Your contributions and efforts were greatly appreciated. It was a great show, and without each one of you, it simply would not have happened. I thought you might like a photo of the show. If you require more, I have many, and would be happy to provide. I look forward to sharing our news updates with you as we march toward opening in Orlando in spring. My Best, Steve Glum / CMO Ace Cafe North America
I enjoyed the article very much, however, I am very disappointed in one of the “Top Ten Tips for Talking to Women Customers.” It is the last one. “Slow down. Know that female customers are customers you will need to spend more time with.” What does this mean? I am highly offended as a woman and can’t believe that you would list this. I feel that it is conflicting with the “Beware of sounding condescending” tip. Are you suggesting we are slow and need things spelled out for us? Or are you suggesting that we are more high maintenance than men? As a sales woman this tip does not make sense and I don’t understand it. I think it’s awful to assume you will have to spend more time with women customers. I have more riding experience and knowledge than most of my male customers. In fact, I believe this “tip” to be false. I feel I have to spend MORE time with men on a daily basis. Women are my easiest customers! Check your facts and realize that you will need to spend time with ANY new rider regardless of sex. Highly disappointed in that comment. Have more faith in your women riders; sometimes (most of the time I’ve witnessed) we’re smarter, faster and better riders than men. Thanks, Chelsea Nicole Taylor
6 November 2014 | Motorcycle & Powersports News
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Inside theIndustry “By integrating our years of motorcycle, ATV and UTV quality data with DataOne’s VIN decoding and MIC data, we can deliver a standardized industry solution to MAX clients,” Andrea Desilets, vice president of sales for Consumer Research Solutions, noted. “Having MIC and CRS choose to use us and recommend our data to their partners further cements our position as the industry standard for powersports VIN decoding and vehicle identification,” said Jake Maki, general manager of DataOne Software.
DX1 product to better suit dealers’ needs today. “We want to be more than just a technology company for our dealers,” says Jeff Littlejohn, president of Dominion Powersports Solutions. “We want to be an extension of the dealers’
and gave feedback. “Moving forward, we plan to have formal get-togethers every other month, webinars and on-going dialogue every month, week and day,” Littlejohn says. “This is our way to channel into the front lines of our customers. We don’t want to be in an office making decisions. We need to be side-by-side with our customers to best serve them.” Last month’s council was the start to Dominions strategy that it hopes will achieve a new level of partnership in every aspect of the dealership. “I could not have been more pleased,” Littlejohn says. “It was greatly successful and we had great participation.”
teams, and we need to have this ongoing dialogue to stay in-tune.” Dominion had its product management team present at AIMExpo to speak with the dealers that participated in the first advisory council
REV’IT! Reveals All-Wheel Drive Adventure Motorcycle
Dominion Powersports Solutions Begins DX1 Dealer Advisory Council While at AIMExpo last month, Dominion Powersports Solutions, the makers of DX1, began its strategic partnership with dealer customers called the DX1 Dealer Advisory Council. This advisory council met for the first time Oct. 16 at AIME to discuss how Dominion can improve its
Since 1995, REV’IT! has been on a quest to develop the world’s most rugged motorcycle gear for its most intrepid adventure-seekers. In 2015, the company
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Inside the Industry will mark this 20-year journey with a Spring/Summer collection of the boldest adventure products it has ever produced... Because breaking all boundaries calls for equally daring gear. To commemorate this spirit, REV’IT! has re-imagined the trend of “custom” bikes and turned its attention back to the ADV community from which it was born: Introducing the REV’IT!#95, an all-wheel drive, adventure motorcycle engineered by an expert cast of artists and craftsmen from around the globe. It’s designed to match the performance and ambition of our new adventure line, for those who
can’t help but dare themselves to dream bigger.
MIC Announces 2015 Board of Director Election Results The Motorcycle Industry Council members have elected Arnold W. Ackerman and Andy Leisner to each serve two-year terms on the 2015 MIC Board of Directors. In addition, Don Emde has been reelected to the MIC board to serve a two-year term and will be returning for his 14th year of service to the board. Arnold W. Ackerman is Chairman Emeritus and Founder of Motorsport Aftermarket Group (MAG). MAG, a 12-year MIC member, has successfully acquired leading brands in the motorsport parts and accessories aftermarket to leverage its combined strength in marketing, advertising and back-office services. Ackerman’s background includes many top positions in the powersports, manufacturing and
aerospace industries. He is an experienced businessman, professional investor and lifelong motorcyclist. Ackerman is the current Chair of the MIC Aftermarket/Allied Trades Committee. Don Emde, publisher/editor-in-chief of Don Emde Inc., brings his vast industry experience with him as he makes his return to the MIC Board. In addition to
authoring “The Daytona 200 – The History of America’s Premier Motorcycle Race,” Don and his father hold the distinction of being the only father and son to both win the prestigious Daytona 200 motorcycle road race. Emde has been a member of MIC’s Aftermarket/Allied Trades Committee for over 30 years and has been a Charter
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Inside theIndustry Member of the American Motorcyclist Association for 52 years. You will find Emde’s name included on the distinguished lists of inductees into three separate motorcycling halls of fame: Trailblazers HOF, AMA Motorcycle HOF and Sturgis HOF. Andy Leisner, vice president/group publisher of Bonnier Motorcycle Group (representing 11 motorcycle media brands), began riding motorcycles at the age of six. He raced motorcycles all through his formative years, beginning with amateur motocross and working his way up to the AMA 250 Grand Prix Nationals and the 250 World Championship. Prior to joining Bonnier, he was the managing partner of Hardcard Holdings LLC, as well as holding top positions with Mazda Raceway Laguna Seca, AMA Pro Racing and Cycle World. Going into 2015, Emde, Ackerman and Leisner join elected directors Larry Little, vice president & general manager, Marketplace Events Motorcycle Group; Steve Menneto, vice president, motorcycles, Polaris Industries Inc.; and Sarah Schilke, head of marketing and PR, Schuberth North America. The remaining directors, appointed by MIC’s maximum-dues-paying member companies, are MIC Board Chair Dennis McNeal, vice president – motorcycle operations, Yamaha Motor Corp., U.S.A.; MIC Board Vice Chair Jon-Erik Burleson, president, KTM North America, Inc.; Steve Bortolamedi, senior communications manager, Suzuki Motor of America, Inc.; Russ Brenan, senior advisor, government relations & public affairs, Kawasaki Motors Corp., U.S.A.; Robert Gurga, vice president, motorcycle division, American Honda Motor Co., Inc.; and Kris Odwarka, vice president, BMW Motorrad USA.
Arctic Cat Reports Fiscal 2015 Second Quarter Results Arctic Cat Inc. reported net earnings of $15.4 million on higher net sales of $262.5 million for the fiscal 2015 second quarter ended September 30, 2014. In the prior-year quarter, Arctic Cat 10 November 2014 | Motorcycle & Powersports News
reported net earnings of $23.4 million on net sales of $238.5 million. Christopher Twomey, Arctic Cat’s chairman and chief executive officer said, “Solid sales increases in the second quarter were led by double-digit gains in our snowmobile product line, as well as parts, garments and accessories. We also saw continued strong sales of our Wildcat side-by-side models and excitement around new Wildcat models introduced to our line-up late in the second quarter. Gross margins, however, were impacted by the significant volume of OEM partner snowmobile models that shipped in the quarter. Looking ahead, we remain focused on maintaining a robust pipeline of innovative new products and improving the company’s
long-term operating efficiency.” Arctic Cat’s fiscal 2015 second-quarter net sales rose approximately 10 percent to $262.5 million, due to higher snowmobile sales to its OEM partner and Arctic Cat’s dealers, strong Wildcat sales and double-digit sales gains in the parts, garments and accessories (PG&A) business. Arctic Cat ended the 2015 second quarter with cash and short-term investments totaling $24 million, and no long-term debt. During the quarter, Arctic Cat’s board of directors authorized a new share repurchase program for up to $25 million of common stock. For the six months ended September 30, 2014, Arctic Cat’s net earnings were $19 million compared to $28.8 million in the prior-year period. Year to date, the company’s net sales increased 13 percent to $406.1 million versus net sales of $359.3 million in the year-ago first six months.
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Inside theIndustry ATVs/Side-by-Sides – Sales of Arctic Cat’s all-terrain vehicles (ATVs) and sideby-sides totaled $69.6 million, down 4 percent compared to prior-year sales of $72.7 million. During the quarter, the company unveiled 15 new 2015 models of all-terrain vehicles (ATVs) and recreational off-highway vehicles (ROVs) at its annual ATV/ROV dealer meeting in mid-September. Snowmobiles – Snowmobile sales in
the fiscal 2015 second quarter rose to $157.8 million, up from $135.4 million in the prior-year quarter. The increased snowmobile sales were largely due to Arctic Cat’s expanded OEM partnership. Following strong retail sales and market share gains in fiscal 2014, Arctic Cat anticipates higher snowmobile sales to its dealers in the current fiscal year. Parts, Garments & Accessories – Sales of parts, garments and accessories
(PG&A) in the fiscal 2015 second quarter grew 15 percent to $35.1 million, up from $30.4 million in the prior-year quarter. The increase was driven by sales of newly developed accessories for Arctic Cat’s expanding line of Wildcat models, as well as snowmobile parts, garments and accessories. For the fiscal year ending March 31, 2015, Arctic Cat now estimates fiscal 2015 full-year sales in the range of $745 to $755 million.
Dowco Announces Organizational Changes for Powersports Division Dowco has recently reorganized the company to better serve customers and ramp up the speed of new product introductions. The company has been segmented into Powersports OEM, Powersports Brand and Marine. Dowco has also promoted Darrin Earhart to General Manager Powersports OEM. Darrin has been with Dowco for 10 years, most recently as Director of Sales. Joining the Powersports OEM group full time will be Deb Drinan as Sales Manager Powersports OEM. She has been with Dowco for 12 years, most recently serving as Western Regional Sales Manager working with OEMs and distributors. In addition, Dowco has promoted Jim Miller to General Manager - Powersports Brand. The brand segment consists of Dowco’s retail brands that include Guardian, Willie & Max, Iron Rider, Fastrax and Rally Pack. Jim has been with Dowco for eight years, most recently serving as Director of Purchasing. Joining Jim is John Bock as National Sales Manager - Powersports Brand. John has been with Dowco for nine years and was most recently Eastern Region Sales Manager for Dowco.
Oxford Products USA Announces Integration with Lightspeed Oxford Products USA Inc. recently announced integration with Lightspeed, the Dealer Management System from CDK Global (formerly ADP) for powersports dealerships. This integration allows dealers on Lightspeed NXT to search Oxford Products warehouse data 12 November 2014 | Motorcycle & Powersports News
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Inside the Industry within the Parts modules of the DMS. By adding Oxford Products data to the locator’s database, dealers will now have the ability to view availability of Oxford’s products in warehouses without having to leave the invoicing screen in Lightspeed NXT. Stocking data is loaded into Lightspeed NXT’s locator database daily, keeping the information updated. “We are very proud to integrate with Lightspeed and have our price books available and warehouse information included in the locator,” said Eric McFarlane, president of Oxford Products USA. “By offering our data within the DMS, we are helping dealers quickly access our products and search multiple sources to locate items they need quickly. Oxford’s inventory of quality products will quickly give dealers the ability to find exactly what their customers want.” With this integration, Oxford Products warehouse availability data will now be automatically added to relevant searches.
Triumph Motorcycles Announces Three New Models Triumph Motorcycles has announced three new models for the US market - the Bonneville T214 Land Speed Limited Edition, the Bonneville Newchurch Special Edition and the Street Triple RX. The Limited Edition Bonneville T214 celebrates the achievements of Texasborn racer Johnny Allen, and his record-breaking Triumph-powered CeeGar streamliner. The new Bonneville T214 Limited Edition, based on the T100 Black, is limited to a total of 1000 bikes worldwide, each individually numbered. Triumph’s second new bike, the Bonneville Newchurch Special Edition features fresh new contemporary paint schemes, a new low profile seat and cool black detailing throughout. The gas tanks are
sumptuously hand painted with a new design that highlights the iconic lines and proudly sporting the new Triumph logo. Available in a choice of Cranberry Red / Pure White or Sapphire Blue / Pure White, featuring hand painted black detailing. To further carry the customized scheme, the Bonneville Newchurch wears blacked-out fenders, headlamp bowl, handlebars, mirrors and springs, as well as all black seven spoke cast wheels featuring a hand painted pinstriped coachline. The beating heart of the Bonneville Newchurch is its iconic 865cc parallel twin engine, which produces 68PS peak power and 68Nm of torque spread across a wide, useable rev range for comfortable performance flexibility in any gear. The third Triumph is the Street Triple RX, which borrows inspiration from its TT and Daytona 200 winning
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Inside the Industry supersport sibling, the Daytona 675R. At the heart of the Street Triple RX is Triumph’s signature triple engine. The 675cc, 12-valve unit is derived from the legendary Triumph Daytona 675 sportsbike, but is carefully retuned to deliver a punchy 106PS and magnificently linear 68Nm of torque for effortless drive and acceleration. Combined with a slick, closeratio six-speed gearbox, Triumph’s quickshifter and flawless throttle control, the powerplant delivers an exhilarating ride. All accompanied by a soulful, characteristic growling exhaust note, one of the most distinctive and charismatic sounds in motorcycling.
Dealer Expo Heads to Chicago December 5-7
On Thursday, November 4, there will be a National Retail Conference that will include high-level dealer/retailer education and training and in-depth content developed with the retailer in mind; management workshops presented by the Retail Owners Institute; marketing workshops presented by Dealership University; sales workshop presented by Peak Dealership Performance; service workshop presented by the Motorcycle Mechanics Institute; and break out forums on building your dream team, Dead Inventory Management and Small Business Exports in 2015. That evening, at 7pm - 10pm at the Palmer House, is the Top 100 Dealer Awards Gala. The event is a businessattire dinner and awards gala to celebrate the Class of 2014, including Merit Awards, the Don J. Brown Lifetime Achievement Award and the 2014 Dealer of the Year Award. This event is complimentary for Top 100 Dealers, Hall of Fame Dealers and program sponsors. Paid tickets are available for all registered attendees of Dealer Expo 2014. Friday and Saturday the show gets underway with hundreds of exhibitors. This year’s expo hall is focused on new products and the future of powersports retailing. More than one-hundred 15-minute new product/service demonstrations will be held on two stages in the exhibit hall.
Dealer Expo has been an annual event since 1966, and this year it will be opening in a new location in Chicago’s McCormick Place West from Dec. 5-7. On Wednesday, December 3, the Motorcycle Industry council (MIC) will host a special half-day dealer program. All dealers are welcome to attend. Wednesday will also feature 20 Group/Dealer Training Meetings, which are invite only. That evening there will be a pizza party meet-and-greet to host those in town early to a classic Chicago deep dish pizza served up in the Willis Tower from 6pm - 8pm. Seating is limited and reservations are required.
The show’s DX14 Model Store & Store Room will feature design and merchandising ideas from University of Minnesota Design School students as part of a retail design competition, created and sponsored by Dealer Expo. The new Model Store- room, hosted by Mel
Dealer Expo 2014 Preview
14 November 2014 | Motorcycle & Powersports News
Selway, will deliver hourly presentations on optimizing parts storage space. Lunch-N-Learns will be an opportunity for attendees to discuss challenges and opportunities with other retailers in a more private setting. Lunch & Learn discussion groups will enjoy a catered lunch while they talk about such issues as competition, hiring and training, taxes, healthcare, even franchise relations. Reservations required. The new product showcase is a multistory “gauntlet” of new products that will frame the exhibit hall entrance. Saturday night from 6pm - 10pm at McCormick Place West will be the Industry Party: Celebrating 50 Years. The industry hosts and honors the “Legends” – veterans responsible for building out the dealer networks and building the dealerships – as Dealernews celebrates the achievements the powersports industry has made since 1965. All attendees and exhibitors are welcome to attend. t
Some of the companies exhibiting this year are as follows: Cardo Systems, Inc. CDK Global Recreation Cometic Gasket, Inc. Dominion Powersports Solutions Fulmer Helmets HJC America Kuryakyn Mattracks Inc. National Powersports Auctions Spectro Oil The Carlson Company VP Racing Fuels XY Powersports Yuasa Battery
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presented by:
By Robin Hartfiel
SHIFTING GEARS Printing All The News That Fits Between the 2nd Annual AIMExpo in Orlando and Biketoberfest in Daytona, Florida was the epicenter of the powersports industry for a week, which made it the perfect time and place to announce that V-Twin industry leader Bob Kay joined the team at Marketplace Events Motorcycle Group, producers of
the American International Motorcycle Expo as V-Twin Director. Long-time Harley dealers will remember Kay from his days with NEMPCO, Biker’s Choice/Tucker Rocky and American IronHorse. “While the American V-Twin community stands out as a strong segment on its own, joining together as a unified force with AIMExpo’s forward-thinking platform will lead to positive gains for all,” says Kay. “I am very excited to join the responsive leadership on the Motorcycle Group team and take the point on their efforts to create a genuine and viable offering for the V-Twin market, and leveraging the strengths of AIMExpo to help grow the V-Twin industry.” •••• Heads up! Industry veteran Scott Holbrooks has left mega-dealership Iron Pony Motorsports to join a helmet manufacturing consortium. “I am joining H&H Sports Protection as their National Sales Manager,” says an elated Holbrooks. “I am very excited about being part of this team and having the opportunity to work with some long-time friends. I’m ready for the challenges and adventures that await me.” For those of you who don’t know the name, H&H is based in Bergamo, Italy and makes the Just 1, Torc and Orgine helmet lines, among other products. •••• More helmet happenings! Phil Ammendolia has headed to Skully to help with the launch of their Heads Up Display (HUD) helmet line. “Working with
LS2 Helmets for the past several years has been an amazingly good experience and I love the brand and the crew there,” says Ammendolia. “But the one constant in this universe is change. A few weeks ago, I was offered a new position with Skully Helmets. Skully has developed the first true head up display (HUD) available in the motorcycle business, and this technology promises to offer new levels of safety to motorcyclists everywhere. It’s very early on, but I think the day will come when this will be as common in a helmet as a radio is in a car.” For those interested, visit www.skullyhelmets.com. •••• Tooling up! Specialty tool and motorcycle component manufacturing Motion Pro is staffing up, including adding Joseph Lopez to further develop the company’s growing Products and R&D departments. Lopez spent the past decade at K&L Supply where he was instrumental in bringing many successful products to market. “I am fortunate to be joining such a respected company that is committed to continued growth and leadership in the Powersports industry,” says Lopez. •••• K&L Supply Co. announces that KC Cho is the new GM. Cho is responsible for the day-to-day operations and reports directly to the CEO Joseph Lee. Cho most recently served as CEO and director of finance at V-Twin industry giant Custom Chrome Inc. K&L also announced that Grace Son has joined the company as accounting manager. She has more than 16 years of experience and great knowledge in the operations, accounting, finance and HR. •••• Do you have a passion for powersports?
16 November 2014 | Motorcycle & Powersports News
Do you own one or more of the following: motorcycle (on or off-road), snowmobile, ATV or UTV? If so, then Motorcycle IndustryJobs.com has the gig for you! Western Power Sports is looking for a marketing director to communicate the vision for the distributor and it’s brands like FLY Racing and Kabuto Helmets. Apply at: www.motorcycleindustryjobs.com. •••• Changing of the guard: Kit Palmer takes over at Cycle News, replacing long-time editor Paul Carruthers. Palmer is being promoted from off-road editor to editor. “I’m disappointed to see Paul leave after all these years, but I wish him well in his new endeavors. I definitely have some big boots to fill, but look forward to my new challenges as the editor.” Meanwhile Carruthers moves on to become communications manager for MotoAmerica, the company that will produce the North American Road Racing Series beginning in 2015. “Moving forward, we are thrilled that Kit Palmer will be stepping into the editor’s role,” says Don Becklin, president of the MAG Media Group which owns Cycle News and MotorcycleUSA.com. “His experience and passion is exactly what the organization needs to propel Cycle News into the future. I believe that readers and the motorcycle industry can look forward to seeing Kit’s stamp on the iconic Cycle News brand.” Becklin notes they are searching for an additional editor to help Kit and associate editor Andrea Wilson. •••• Former Bonnier (owners of Cycle World and Motorcyclist among other titles) integrated account rep and industry veteran Michael Kula is now the National Sales Director for EPG Media/Rider Magazine. Long-time dealers may remember him calling on their stores back in the 1990s: Before getting into
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the PR and media portions of the powersports industry, Kula started as a sales/marketing guy for DG Performance and was later with watercraft aftermarket leader Westcoast Performance Products. More recently he handled the Yamaha and Scorpion Helmets accounts at Marshall Advertising & Design. •••• Jody Perewitz, the world’s fastest woman on a V-Twin, is now on the business fast track. After going 208 mph. at the Bonneville salt flats, Jody is now in the hot seat at the legendary New England custom shop, Cycle Fab. Custom painter and industry icon Dave Perewitz has gone back to his roots, now focusing his time and efforts on doing what he does best, custom paint design. Jody will be assuming the majority of day-to-day management and other duties for Cycle Fab. “Dad is truly a master among custom painters and the stress that goes with running the operation, not to mention all the TV and other media obligations, left precious little time to light up the spray gun and do his magic,” says Jody. Get more details at www.perewitz.com. •••• Bob Sporka brings his years of distributor, wholesale and retail experience to the Samson Exhaust sales team. Bob will be responsible for the timely supply of Samson’s Big Guns, Street Sweepers, Legend Series and the popular Cholo Longtail line from the Sturgis-based manufacturer. “I’m really looking forward to supporting this great group,” says Sporka. “To be allowed to work with Kenny Price, a gentleman and businessman I’ve respected for years, was the icing on the cake.” t
MotorcyclePowersportsNews.com 17
18 NPA recap_Nov 11/11/14 2:50 PM Page 18
Recap
Pre-owned monthly
By Jim Woodruff
Off-Road Categories Top The Charts Again
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or the third month in a row the off-road categories displayed positive year-over-year trends for Average Wholesale Pricing (AWP). In September, we see continued strength in the ATV and MX categories. ATVs jumped eight percent and the MX category increased 12 percent over last year. The Side-x-Side segment was the only off-road segment that saw a decline year -over-year. We see similar trends in September’s AWP vs. the last 90 days – the ATV category increased four percent, the MX category increased by five percent and Side-x- Sides were down seven percent. The relative decline in Side-x- Side AWP has been consistent the last few months, something we recommend dealers monitor when taking trade-ins since the AWP is a little softer this year than last. On-highway pricing followed established seasonal trends in September, with sport bikes returning closer to normal with a four percent increase in AWP year-over-year. While metric cruisers only showed a small one percent decrease, domestic cruisers saw a three percent decrease and remain softer this year over last with domestic cruiser dealers reporting a continued glut of inventory. When we compare the AWP for the on-highway categories to the past three months the figures are very similar to what we saw year-over-year. Sport bikes trended up two percent while metric and domestic cruisers trended down one percent and five percent respectively. Unlike last month, when unexpected bumps in AWP for the Sport and ATV segments were due almost entirely to a premium product mix, the data suggests that the sustained higher AWP levels for ATV and MX segments are largely due to increased demand for those products. This is reflected in the rise in Price/Book ratios from August to September, since book values tend to normalize product mix effects.
Data includes all live and online transactions from all four NPA locations. Closed OEM auction data is excluded.
Take-Aways Historically, wholesale pricing tends to stay flat to slightly up this time of year and then rises as spring approaches. No one knows for sure whether the seasonal inflection will take off in December or February, so it’s important to stay up to date on wholesale values as spring approaches. This time of year is also a great time to stock up on inventory from trades, street buying and auctions while prices remain comparatively low. As the old adage goes, the money is made in the buy, so be sure you buy them right by doing All data provided by National Powersport Auctions. For more your homework using the NPA Value Guide, NADAguides and information, please visit www.npauctions.com or call (888) 292-5339. your own market intelligence. This will also ensure that if you wind up not being able to retail the inventory, you can still break out of it if you end up wholesaling the unit or sending it to auction. t
18 November 2014 | Motorcycle & Powersports News
19 Marketplace 11/11/14 2:50 PM Page 19
20-21 Dealer Management 11/11/14 2:49 PM Page 20
Dealer MANAGEMENT SOLUTIONS
By CJ Pedler
A Fundamental Question For the Service Department
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t should be a no-brainer. A question answered nearly as soon as it’s asked. Like when your wife asks you how many years you’ve been married (14, honey!). Or when your buddy asks you who won yesterday’s NASCAR race (Kyle Busch!). It should be that automatic. Like a reflex. Here’s the question: What is your effective labor rate? If your service manager can’t quickly answer, it’s a sure sign of an ongoing profitability issue in your service department, or one that’s about to rear its ugly head. Think of it this way: If you can’t answer the marriage anniversary question quickly and successfully for your better half, life might suddenly turn ugly. We recently emailed the effective labor rate question to a number of our powersports dealer friends and received the following responses: “86 percent, shooting for 90 percent!” “85 percent.” “We really don’t do that…” Cue the disturbing background music and piercing, high-pitched scream. That last response isn’t good. Effective labor rate is a terrific profitability benchmark for our service departments because it’s easy to identify. It can also be a sign of two potentially disturbing issues: excessive discounting and lack of training. To figure out your effective labor rate, simply take the total dollars of your labor sold and divide it by billable hours. Essentially, what we’re hoping the effective labor rate shows us is a percentage that is as close to 100 percent of your posted labor rate as
possible. Some believe a really effective labor rate percentage should be within 10 percent of your posted labor rate. Rather than debating a few percentage points, we’re more interested in whether you and your service manager know that percentage as readily as yesterday’s racing result.
“To figure out your effective labor rate, simply take the total dollars of your labor sold and divide it by billable hours.” If you do, terrific, but don’t stop there. If you have multiple service writers, do you know it for each of them? Many of us know our effective labor rates for our techs but don’t examine it for each service writer. Each service writer should be checked to determine if we have somebody who is a little too friendly with discounting. That’s a common problem associated with low effective labor rate percentages. The other issue that effective labor rate percentages can highlight is the need for additional training. Is one of your service writer’s effective labor percentage rates low because he doesn’t know what it takes to do each job? Is your service department under-selling labor
20 November 2014 | Motorcycle & Powersports News
times and not giving the tech enough time to get the job done properly? An examination of each writer’s effective labor rate percentage will tell you that. It also can be a reminder to examine some of your menu items, especially those that haven’t been changed in years. Remember when you increased your labor rate last time? When you did that, did you also change your menu pricing? If not, your effective labor rate percentage will be impacted. This competitive rate approach for common menu items may be part of a strategy to draw more traffic into the store. Ultimately, you’ll have to ask this question: Is more traffic leading to more revenue? Thankfully, running effective labor reports in a modern dealer management platform can be a simple task. Some modern dealer management systems include operational and marketing applications that are easily set up so those reports can be created and then automatically emailed to your inbox as often as you like. Hopefully, that type of efficiency will let your service department staffers know their labor effective rates as quickly as yesterday’s NASCAR results. Unfortunately, we haven’t figured out how to do the same for your anniversary date… t
CJ Pedler is director of customer support for Dominion Powersports Solutions, the provider of DX1 Powersports, the industry's only dealer management platform with operational and marketing applications including inventory management, accounting, lead management, mobileresponsive websites, online marketing, email marketing, and social media.
20-21 Dealer Management 11/11/14 2:49 PM Page 21
Extra!
G
Smelling History at the 10th Annual Barber Vintage Festival
By Kevin Butler, Operations Manager, Northern Ohio Ducati Triumph
rowing up a motorcycle enthusiast in the midwest, I have been spoiled by everything from the flat track racing and swap meet at Wauseon to the Superbike weekend and AMA Vintage Days at Mid-Ohio. But this year I finally had the opportunity to make the trek to Birmingham, Ala. to visit the 10th annual Barber Vintage Festival that was held Oct. 10-12. If you are a vintage motorcycle fan, this is your Graceland. Not only does the Barber Museum offer the largest collection of Lotus race cars in the world, but it has an amazing collection of more than 1,200 vintage motorcycles from every manufacturer dating back as far as 1902! The moment you walk through the doors it’s obvious this was a well-planned
endeavor. There are very few velvet ropes, and the exhibits are displayed so you can get up close enough to almost smell the history. Mike Hailwood’s Ducati and Giacomo Agostini’s MV Agusta were practically hiding in plain sight among the priceless selection of fully restored vintage marvels, prototypes and history making machines. The Barber Vintage Festival could easily be spread out over a full week. There’s so much to take in over a long weekend. On Barber’s 740 acres, there’s vintage road racing, trials and cross country racing, the cleanest and best organized swap meet area I’ve ever visited, and an endless array of exhibits, clinics and industry related vendors from dealers to manufacturers, which truly makes the event live up to it’s festival name. While most people will never see a
Vincent Black Shadow or a pre-war Indian Chief on the road, on this particular weekend it’s not uncommon to see a line of these highly collectable, perfectly tuned, antique motorcycles cruising around the grounds at Barber. There have always been stories passed around highlighting the sites to be seen at Barber by those fortunate enough to have made the trip, so I must admit I took great pleasure in finally being able to understand the hype firsthand. t
MotorcyclePowersportsNews.com 21
22-25 Vintage Gifts_Layout 1 11/11/14 2:48 PM Page 22
by Margie Siegal
I’m dreaming of a white Christmas Just like the ones I used to know Where the tree tops glisten And children listen To hear sleigh bells in the snow – White Christmas by Irving Berlin
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all and winter can be slow for motorcycle retailers, but many dealers get a little boost around the holidays. “We aren’t Macy’s, but we do get an uptick,” says Tom Perkins, President of Dudley Perkins Co., San Francisco’s Harley-Davidson dealer. “We are the go-to choice for relatives who want to buy for their Harley fanatic.” One of the ways to encourage that uptick is to indulge the seasonal impulse towards nostalgia, and go vintage. “Classic design is clean, minimalist and timeless,” says Madina Merzhoeva, Vice President of Sales and Marketing for the US Ural distributor, IMZ Ural. “That attracts an audience.” Promoting vintage motorcycles and items associated with old bikes can increase both foot traffic to your store and sales. Follow these helpful tips for ways you can implement vintage holiday themes throughout your dealership.
22 November 2014 | Motorcycle & Powersports News
Display customer’s restorations: Are some of your customers restoring older models of the bikes you now sell? Offer to post photos of the completed projects on your website or design a display with a nice classic as the centerpiece. “Every year in December I become a promoter,” says Randall Washington of Randakk’s Cycle Shakk, a retailer of parts and accessories for older Hondas. “My slow time is December, so I push tech tips and things my customers are doing on social media. Showing photos of finished restorations kicks people to get going on their own restorations. It drives business.” Randall only has a website, while you have a whole store to set up a display in. A seasonal display featuring a vintage motorcycle or two gives people a reason to go to your store, despite the fact that it is too cold and wet to ride. Remember to announce the display on your website, on social media, and send an email blast to your customers. Not only will the vintage display boost foot traffic, it will also encourage other people restoring bikes to visit you, seeking parts and services such as machine work and painting. Think you
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don’t sell vintage bike parts? Check with your OEM; you may be surprised how much is available for older models. One dealer who does this on a yearly basis is Scott Dunlavey, the Berkeley, California Honda/Yamaha dealer. Scott is heavily involved with desert racing, which gives him access to interesting display bikes. “We have usually displayed vintage race bikes or Baja 1000 race bikes with a Christmas theme to spruce things up,” Scott says. “With that, we try to add in vintage or classic Yamaha or Honda t-shirts, hats, coffee mugs, etc. It usually brings people to stop by and check it out and many times they buy a little something or even go ‘big’ and buy a kid a small dirtbike or ATV. Another big hit has always been DVDs – anything less than $40 to $50 that’s fun!” Like Randall, Scott makes an effort to promote his business during the winter months. “We’ve always tried to make it ‘the place to be’ or visit during the holidays to keep the interest level going.” Put your classic models forward: Many dealers sell vintage-looking bikes, such as Enfields and Urals, and these can be the centerpiece of your holiday display instead of, or in addition to, an authentic old bike. Sidecar outfits especially lend themselves to holiday décor. “Put Christmas gifts in the sidecar,” says Madina. “Sidecars have this genuine charm, they bring smiles, and people can imagine having a special moment riding together.” Push Vintage Christmas presents from your OEM catalog: Many OEMs offer vintage themed items that make great holiday presents.
These can be presented as part of your Christmas display. Studies repeatedly show that having samples of products on hand that customers can actually see and touch drives sales, so don’t just rely on showing people a photo in a catalog. John Landstrom of Blue Moon Cycles, the Atlanta BMW dealer, sells lots of tin signs (“We can personalize them”) and stained glass roundels with the BMW logo. Tom Perkins says, “Clothing in general sells. We sell coffee mugs, watches, vintage style belt buckles, pins, patches and decals.” Train your staff to be extra helpful to relatives and spouses who come to your store. They may come wandering in and seem a bit lost. “We show them the gift catalog,
which has photos of motorcycles, and ask them to point to a bike that looks like the one the gift recipient has,” says John Landstrom. “We try to figure out what model the husband or relative has. Guys with sportoriented bikes want very different things than guys with tourers. In case of doubt, we suggest a gift certificate. Gift certs go over big.” “We always have and always will make an effort to help relatives and friends,” says Tom Perkins. “You never know when a relative will turn into a customer.” Tom has seen relatives walk in, looking to buy a present, and walk out with a quote on a Sportster and new-rider training brochures. Hold a vintage-themed holiday show: Hold a crafts fair, and decorate your shop to echo Victorian England or the 1950s in middle America. Invite local artists and craftspeople, and also the local vintage clubs, who if given enough lead time, will show up with calendars and a couple of nice bikes. Allan Gorman (www.allangorman.com) is an artist who has recently started doing pop-up shows at motorcycle dealers, usually in conjunction with a dealer event, such as a new model roll out.
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“I have been selling some prints,” Allan says. “It’s a nice addition to the event. I get a good reaction every time, and have made a lot of friends. It’s a win/win situation – the paintings fit in with the environment and I bring in an audience that would not ordinarily go to a motorcycle dealer.” Gorman suggests adding a link to his website in any promotional material so that prospective event goers can get a preview of the art. Help someone with a special present: Someone doing a restoration can spend a lot of time looking for a particular part, and you may have connections that can get it. Tony Dunn of Classic Cycles, Inc., a Southern California repair and restoration facility for British motorcycles,
has had experience with spouses and friends who want to surprise their special someone with the part they have been looking for weeks. “I try to make sure that the customer who is buying the present knows what the customer wants. I tell them to look over his shoulder when he is on eBay.” Some spouses and friends are good at gumshoe work, and know exactly what the exasperated restorer needs. If you know your customers well, you can be the one to supply the information the gift giver needs to find that very special present. “Sometimes I know a good customer of mine is looking for that magic part,” says Dunn. “If you can help get the item that is holding up the restoration, you will win undying gratitude and word of mouth advertising that you couldn’t buy.” If the gift buyer is not good at sleuthing and doesn’t quite know what the motorcycle
24 November 2014 | Motorcycle & Powersports News
owner needs, the purchase of a specific part should be discouraged. Point out that a gift certificate will always be helpful and will not need to be returned. Sell someone a classic motorcycle: You may have a classic bike on your floor for one reason or another, and the holidays are often the time you sell it. Tony Dunn and John Landstrom sell vintage motorcycles on a regular basis. John Landstrom displays older BMWs that his shop has restored. Tony Dunn always has a selection of consignment motorcycles, and well heeled customers often want to buy these motorcycles as Christmas presents. Sales to people who are going to give the bike as a gift present special challenges, so you must: – First, make double sure that the bike is something that the person who is going to get the present actually wants. “I often sell a vintage bike as a Christmas present, but it always worries me,” says John Landstrom. “I ask the gift giver if they are absolutely sure that the bike is
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what the recipient had in mind. The supply of quality vintage bikes is limited, there are enough customers that I don’t have to worry about selling them.” “I tell the gift giver to turn sleuth,” says Dunn. “What kind of bikes are pictured on the T-shirts he wears? How old is he? What does he already have in the garage? I can usually figure out what
the guy would want, based on my experience and what the customer tells me.” – Second, be prepared to take the bike back. “I offer a money back guarantee if the bike comes back a few days after Christmas in the same condition I sold it,” says Landstrom. “I remember one deal – I decided to be open on Christmas Eve for some reason and a church group came in, wanting to buy a motorcycle for their pastor. The deal took hours, it was a mess – and of course the pastor came back with the bike. However, he ended up exchanging it for another one.”
“A lifetime customer is worth more than one motorcycle,” says Dunn. “We tell the buyer that we will take the bike back if the guy doesn’t like it. We have people who drop a lot of money for Christmas, and if they are happy with how the deal went down, they will be back.” Use vintage motorcycle images in your advertising to evoke an old fashioned Christmas. “Christmas is special, and one of the things that make it special is the family spending time together. Think of an old fashioned Christmas with everyone gathered around the tree,” says Ural’s Madina. Use images of vintage bikes, or vintage appearing bikes in your advertising to evoke that old fashioned feeling. Madina points out: “Urals not only look classic, but give people the experience, fun and adventure of motorcycling together.” With a little effort and outreach, you can have a truly vintage holiday season, with jingle bells all the way to the bank. t
MotorcyclePowersportsNews.com 25
26-27 Stocking Stuffers 11/11/14 2:47 PM Page 26
Essentials Stocking Stuffers Rokform iPhone 6 Cases Rokform, a leading manufacturer of smartphone and tablet cases and mounting systems, has introduced its new line of Apple iPhone 6 cases that includes four different styles, the Sport v3 Case, the Mountable Clear Case, the Aluminum Fuzion case, and the mountable Aluminum Fuzion+ RMS case. Three of the new designs feature Rokform’s newly patented Rokform Mounting System (RMS) technology, allowing users to mount their device to an assortment of accessories. MSRP: starting from $39-$99
Factory Effex Vintage Baseball Shirts White/black screened 3/4 raglan sleeve baseball shirts with screen-printed OEM logos. Contrasting ribbed collar and sleeves. Double-needle stitched sleeves and bottom hem. These shirts are officially licensed products. Available M-XXL Retail Price: $34.95. ------------
For More Info: www.factoryeffex.com
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For More Info: www.rokform.com
Dunlop Legends Knobby Tire Coasters Most MX fans will remember the cool black and white legends posters that Dunlop Tires produced a couple years ago featuring MX icons. Smooth Industries was so inspired by those posters that it turned them into drink coasters. The company didn’t stop there as it put them inside actual knobby tires made of silicone, even adding the bright yellow Dunlop logo. Each 4-pack includes different images on each side. Retail Price: $24.95. ------------
For More Info: www.smoothindustries.com
26 November 2014 | Motorcycle & Powersports News
26-27 Stocking Stuffers 11/11/14 2:47 PM Page 27
Gear Essentials The motoPOCKET
Cultured Biker T-Shirts
This holiday season your customers can treat the motorcyclist in the family, or friend, to a motoPOCKET. The quality, durable motoPOCKET range starts at $35.95 to $45.95 making it the perfect stand-alone gift, or for an extra-special present idea, stuff The motoPOCKET with accessories such as gloves and tools. The motoPOCKET range stops all that frustrating digging around for a cell phone, wallet, gas card, garage door opener – you name it. Designed to take advantage of the precious space on a motorcycle, the motoPOCKET lets you access your essential items at a moment’s notice. The motoPOCKET range includes six different designs, which make them perfect for almost every motorcycle design including adventure, sports, cruisers, touring bikes and scooters/mopeds. Attaches to your windshield, top case, side cases, or handlebars. Simple to install with its easy Velcro attachment feature.
Cultured Biker, a new apparel company for motorcycle riders, has launched with a line of t-shirts that are distinctive, high quality and functional. Selling directly to consumers, dealers and as private label shirts, Cultured Biker premium quality shirts are made from either American grown, heavyweight cotton or a high quality bamboo blend. Bamboo is a natural performance fiber that is anti-microbial, wicking and keeps you cooler. The shirts were designed with functional features such as reinforced seams and being longer in the tail to make sure you’re covered when leaning forward on a bike. The debut collection features four shirts; the Signature Shirt, the American Biker, the Veteran Biker, and the Service Biker.
Retail Price: $35-$45
------------
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For More Info: www.culturedbiker.com
For More Info: www.adventurepockets.com
MotorcyclePowersportsNews.com 27
28 CDK Global Report_Nov_Layout 1 11/12/14 9:12 AM Page 28
Recreation
Inventory Report Powersports Dealer New Units in Stock
October 2014 1,916 Lightspeed Dealers, Distribution of Units by Type and Model Year Prior to 2013 Model Year
2013 Model Year
2014 Model Year
9% 13% 77%
12%
ATV
19% 69% 13% 19%
Snowmobile
68%
12% 67%
Off-Road Motorcycle
CDK Global Recreation, provider of LightspeedEVO and LightspeedNXT, manufactures dealer management solutions 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 1,900 Lightspeed powersports dealers automatically transmit their information to a collective database held at the CDK 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. CDK 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. www.cdkglobal.com/recreation
22% 15%
6% 12%
58% 27%
82%
On-Road Motorcycle Utility Vehicle 28 November 2014 | Motorcycle & Powersports News
Scooter
29 CDK 11/12/14 9:12 AM Page 29
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DESTINATION
Dealership By Margie Siegal
Classic Cycles, Inc. Repairing and restoring the British motorcycles of yesteryear
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lassic Cycles, Inc. is a family business in more ways than one. As in many family businesses, owner Tony Dunn’s daughter Melissa Dunn answers telephones and does the scheduling, and his wife Sheri Dunn keeps the books straight. But Classic Cycles is also part of the family of British motorcycle enthusiasts, the tribe of owners and riders of the Triumphs built in Meriden, England until 1983. Nortons, Matchlesses, Vincents, Panthers and Velocettes are companies long gone but not forgotten. It may seem strange to base a business on out of business OEMs, but even though BSA, Scott, Sunbeam and AJS have not manufactured bikes for years, the demand for parts, accessories and service on these English imports has not faltered. Many of the folks who worked on Britbikes over the last few decades have hung up their Whitworth wrenches, and the remaining mechanics who can do quality repairs on Nortons, BSAs and Triumphs are never out of work. Membership in the extended family of Britbikers means that Classic Cycles doesn’t have to advertise. “I volunteered to be technical adviser on several of the Britbike online forums,” Tony says. “As a result of that exposure and word of mouth, I get all sorts of business. I get engines shipped to me on the West Coast from Massachusetts. Most of my customers are in the Western United States, but I get engines and bikes shipped to me from all over. I have a waiting list for service work.” Tony Dunn got to this state of overwork by a circuitous route. He had careers in the military and in neon sign installation. While he was involved in these fields, he worked on motorcycles
as a hobby. “I was having a discussion with the editor of a motorcycle magazine and said that I liked to work on bikes, but was having problems with some things about the brand of bike I was working on. He asked me what I would like to work on. I said I would like to have a Triumph Bonneville. He said, ‘I have one in the basement in pieces! I’ll give it to you!’ It was a 1969 model, just what I wanted. I bought rat Bonnevilles to get parts and became by default a Bonneville expert. My garage was filled with bikes.” “My son Andy was 16 at the time and he became involved with the garage scene. I infected my son with Triumphitis. He moved into his own house and his garage became filled with bikes. We decided to rent an industrial building and split the rent.” The word got out that Andy and Tony Dunn were in a shop space and people started bringing them bikes to fix. “My son said we had to get legal. We got a repair license and incorporated. All of a sudden we were in business. We ran out of space and moved from that 1,500 square foot space to a 4,500 square foot space. We figured we would never need all that space. That was 10 years ago and now we need twice the space.” Classic Cycles’ core business is repairing and restoring the British motorcycles of yesteryear. Although Tony’s forte is Triumphs, he will work on all older British bikes. Unlike many other
30 November 2014 | Motorcycle & Powersports News
classics, owners of British motorcycles often ride them on a regular basis, and in Southern California, where Classic Cycles is located, there is a social scene organized around riding, working on, showing and swearing at the British iron of yore. It is not uncommon for customers to want new tires, a tune up, or an oil change for their 30 and 40 year old two-wheelers. Since the majority of these vintage motorcycles are licensed for the road, Classic Cycles advertises VIN certifications. Given the age of the motorcycles Classic Cycles works on, many need major work. Some customers just want to get the old beast running, others want a ground up concours restoration, a third group wants a custom machine, and the shop does its best to make everyone happy. “With my background in electric signs, my niche is electrical work. I like a good electrical challenge. No one wants to do British motorcycle electrical work, but really, despite all the jokes, the Lucas stuff isn’t all that bad. Most of the time the problem isn’t the Lucas components.”
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CLASSIC CYCLES, INC.
One of Classic Cycle’s mechanics, engine specialist Bob, used to own a Triumph racing team, and has years of experience in putting together fast but reliable engines. Doing restoration work involves an extensive knowledge of what is right for any particular motorcycle. Triumph, for example, exported bikes to the West Coast with different specs – often very different – from the bikes that went to the East Coast, and a thorough
knowledge of what is correct for each model year is essential. Part of getting it right is to be able to match finishes – the right color paint and chrome only where the original had chrome. Getting it wrong results in points lost at shows, harassment and derision from other owners, and angry customers. Tony and crew have the knowledge to get it right the first time. Many of the customers are older mechanics who don’t want to spin wrenches anymore. “They check out the shop carefully before they ship their pride and joy to us.” Other customers are very young. “These young kids often have paid a lot of money to another shop, and got taken. Some of them use their classics for transportation. If a guy needs a bike for transport, they get priority.” Tony also sells British motorcycles on consignment, as well as helmets, tires, Britbike parts and accessories. Parts for the most popular models are available new from a variety of suppliers. There currently is a cottage industry making upgrades of different Britbike components. Ingenious minds have had years to figure out how to overcome the most grievous faults of the old roadburners, and better brakes, electronic ignitions, battery bypass systems, and carburetor upgrades are available on Cycle Classic’s shelves. The quality of these items can vary, and customers rely on Classic Cycles’ expertise to pick components that will
1425 N. Manzanita St. Orange, CA 92867 Phone: 714-974-1438 www.classiccyclesinc.com
OEMs: All the former British factories: AJS, BSA, Matchless, Norton, Scott, Vincent, Velocette, 1983 and earlier Triumph, Panther, and other, smaller manufacturers. Aftermarket: 7Metal West, Biltwell, Bob Newby, Factory Metalworks, Pazon, Born Loser and Lowbrow Customs. Employees: 5
work on their model bike. Classic Cycles does have a website, but since the company has no need to advertise and its main business is repair, the website mostly serves as a way for people to contact the company. It also lets customers know what the business has for sale. One section of the site reprints magazine articles featuring custom bikes Classic Cycles has put together: it gives aspiring bike designers an idea of what can be done to turn the basic English single or twin into high art. Tony Dunn is happy that he is making so many other people happy. His business philosophy is summarized in one sentence: “If you are honest about everything you do, you never have to remember your lies.” t MotorcyclePowersportsNews.com 31
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By Alisa Clickenger
I
t’s a fact that the most successful dealerships are good at PG&A sales as well as selling units. In today’s hurry-up world it’s natural to gravitate towards the easy solutions to turn a profit. The expedient approach, however, might not always be the best one for serving customers, and ultimately it may not be the most profitable. It may seem counter-intuitive, but it doesn’t always pay to chase the highest margin apparel lines. Knowing your consumer base and their underlying motivations, as well as developing a connection with them, is the best path to your profitability. Customers First According to Jennifer Robison, Field Brand Support Manager for
Tucker Rocky, price is much lower on the list of buying motivations that you might imagine. Customers are much more motivated by questions such as: Will this product work? Does it fit my bike? Does it fit me? How long will it last? Is it new technology or a new style? If a product is not suitable or does not fit, price is not relevant. “Much higher on the list of customer motivations are, ‘Nobody else has it and I want to be the first to have it,’ or ‘I’ve read about it or I’ve heard about it and I’ve got to have it,’ and ‘It will make me look amazing,’” says Robison. Robison’s job involves working with sales teams at brick and mortar stores across the United States helping them recognize the things that may be impeding them from growing sales.
32 November 2014 | Motorcycle & Powersports News
She advocates thinking about your parts department as a business department. This means doing your research and stocking the appropriate brands for your region, season, gender, age and lifestyle demographics. “Seventy percent of buying decisions in a standard retail setting still happen in-store,” says Robison. “People like the experience of in-store. In-store means discovering product. And the only way to discover it is if it’s presented in a way that speaks to them. So you want to use the product’s branding and use products and brands that speak to people.” Speaking to your customers’ needs is the most important part of your job as a dealer. Customers feel it when the focus is on them and their desires,
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and the feeling needs to be genuine or they won’t come back. From the moment they walk into your store, show them that you care and that you’re there to make their powersports dreams come true. REV’IT! is an apparel company that is very selective with its dealer outlets and how those dealers interface with customers. “We work with dealerships that believe in apparel as a good source of margin and also a good part of the service that they give to the final user,” says Paolo Bacchiarello, director of operations for REV’IT!. Being selective actually works to REV’IT!’s advantage as a brand, and ultimately works to the benefit of its dealers and customers alike. Eric Anderson, president of the Vroom Network says, “I think we need to do a better job of stimulating our customers as
to how they can dress. We need to show them. We need to demonstrate how to dress. I think by setting an example of how you dress whether it be as a retailer or the way you dress your mannequin, you need to raise the expectations not only of yourself and your staff, but of the customers too. That’s the dealer’s job. That’s what a retailer does.” Sometimes, serving customers means acknowledging that we cannot help them with a particular need. “Care enough about your customers that you are willing to refer them to someone else,” says Joanne Donn, founder of GearChic.com. “Even if it’s a competitor. If it’s really something that they need, and you can’t provide it for them, then you have to refer them out to where they can get what they need. And then they will come back to you
later for what you can provide. That loyalty really does come back.” Tap the Strength of your Vendors Caring for your customers means not only listening to them, but also training your staff to be knowledgeable enough to serve them. This is where your vendors come in handy. They’re trained to support you, and very often their companies have given the reps broad training on a variety of topics, not just facts about products. Some companies even train their reps in other areas such as merchandising. Your vendors may also have POP support materials that can help you achieve your ends. Ask them. “A little secret to getting more support is changing your mindset about how you interact with your vendors...consider
MotorcyclePowersportsNews.com 33
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treating them like a customer, you might be surprised at how many resources are available,” says Jayson Wickenkamp, national sales manager for Scorpion Sports USA. “Your vendors are always looking for ways to help.” Wickenkamp should know – he was once a sales rep and remembers well the dealerships that were friendly and accommodating. Wickenkamp returned the favor with additional sales help and support, often going above and beyond in looking for more ways to help those dealers profit and succeed. In the end, this created a win-win situation for both the dealers and the reps, and at the same it was a win for the customers. Create Community One way of creating customer loyalty is creating community within your dealership. “The future for American motorcycle stores is to create a destination point. Whoever doesn’t do this at this point is in trouble. Otherwise there is no advantage over the online
guys,” says Bacchiarello. “You need a fireplace to go to, so to speak. Create the right community. This is what we are trying to do as a company.” In fact, REV’IT! Believes in community so much that it recently hired Tracy Motz, a former motorcycle journalist, as community manager. Motz suggests dedicating space. “Communities exist because of interactions, and a physical space that encourages this can be a huge asset for a dealer,” says Motz. “Instead of using couches or chairs wherever they most conveniently fit or installing them as an afterthought, dedicate a small section of the store to a well-curated space that inspires people to sit, talk and connect. Ultimately this makes riders feel they are part of something bigger.” Motz also suggests making your dealership a start and end point. You do this by identifying active riding communities and inviting them to use your dealership as a start or end point for their rides. Motz suggests offering space
34 November 2014 | Motorcycle & Powersports News
to local clubs, and if you’ve already got a dedicated space in your store, connect with local clubs or active forum groups and offer to host their next meeting. “It extends a feeling of goodwill, and also puts your newest products in front of active consumers,” says Motz. A service-oriented, what-can-I-do-tohelp approach to your accessories sales will take the dealership far. Customers that feel heard, appreciated and understood are the ones that become loyal customers. “Customers are more open to someone who cares about them,” says Nick LoMonaco, director of powersports for The Fulmer Companies. “You’re selling a solution. When customers think that you have their best interests at heart, they become much more willing to make the purchase from your establishment.” “Help customers visualize how they will look and who they can be while riding these bikes,” says Wickencamp. “If we do a good job of painting that picture for them, then the sale is ours.” t
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36-37 Apparel Essentials 11/12/14 9:08 AM Page 36
New and Noteworthy: Brittany Morrow just re-launched RockTheGear.org. Inspired by her unfortunate and extreme motorcycle accident in 2005, the site is dedicated to the promotion of motorcycle safety apparel and the education of riders. Rock The Gear takes a friendly approach and makes it easy for riders to get baseline apparel information. ------------
www.RockTheGear.org
MTech breaks onto the US motorcycle apparel scene with eight new products designed in Italy. Distributed by Total Parts Distributors, both their textile and leather gear combines state-of-the-art technologies with appealing designs. MTech has street and adventure apparel lines for men and women. ------------
www.mtechgear.com
Tip from a Pro: “Merchandising always has to be about creating a sense of urgency, engaging customers, discovering new product and generating sales. Want to be successful selling apparel? Re-define how your dealership thinks about add on sales.� -Jennifer Robison, Merchandising Expert and Field Brand Support for First Gear and River Road
36 November 2014 | Motorcycle & Powersports News
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The KLIM Altitude jacket and pants are now available. The Altitude was built specifically for women riders and is a full-featured motorcycle touring jacket. Like all of Klim’s technical riding gear, the Altitude is feature-rich with 3M Scotchlight reflective accents for increased visibility, a micro-fleece lined collar, nine pockets, adjustable side gussets and forearm straps and an external waist belt. Made of GoreTex Misano performance fabric with two bicep vents, two armpit vents, & two back vents and is guaranteed waterproof. ------------
MSRP Jacket: $569.99-$609.99 MSRP Pants: $499.99 www.klimusa.com
Racer Gloves announces two new gloves. The Mickey is a short cuff glove with a combination of leather and mesh construction. It’s available in black and good for street, adventure and off road riding. The Guide Glove is mid-length sport glove featuring a Clarino goatskin palm and mcFit lining technology. Knox SPS protectors on the palm and TPR protectors on fingers and knuckles. Perforated fingers and back of hand provide airflow. Available in black and white/black for dual sport, motard and sport riders. ------------
MSRP: $115.99 Both gloves are available in sizes S-3XL. www.racerglovesusa.com
MotorcyclePowersportsNews.com 37
38,40 Insurance_Layout 1 11/12/14 9:11 AM Page 38
&
Finance Insurance
By Bert Alanko
Five Minutes With Your Insurance Man Practical Tips To Improve Your Coverage
S
ome people see the glass half empty, and others see it half full. But when it comes to insurance, there’s typically only one way to look at it: Are you covered or not? While some insurance companies say they’ll save you a bundle in no time, the unfortunate truth is you usually get what you pay for which may leave your dealership vulnerable to coverage gaps. In our experience, dealers often don’t fully understand what they need when it comes to buying insurance. A lot of dealers just say, “I need an insurance policy,” or “I need an open lot policy or a garage policy,” and hope that their agent does an adequate job of inquiring about their business. However, if you go to offsite shows or events you may not have coverage outside of your location or for the transportation to the event. Therefore, it’s important to ask your agent as much as you can because he or she may not know exactly what you do and what to ask you. The bottom line is only you know your business and all of its intricacies. Your insurance agent is going to ask you a few things, generally, about your business. Mostly things such as how many employees you have, how many techs you have, etc. But there are a lot of little nuances in your business that you need to make sure are covered. Who’s going to be driving your vehicles, for instance? Is it just for business or
personal? Who is supposed to be covered? When are they covered? Where are they covered? And what are they actually covered for? A specific standard policy form “generally speaking” provides coverage unless it is excluded, so I highly recommended you check with your agent to see what kind of exclusions are included in your policy that you should
know about. People in California found out the hard way that earthquakes were not covered. And the damage caused by Hurricane Katrina, resulted in many lawsuits. Was it by wind or flood damage? If it was a flood that caused the damage, you weren’t covered. But if it was wind that caused the damage, you were covered. If the wind allowed the water to come in and cause the damage then you were covered because of that. All these things are little nuances you need to know for your particular policy or you could be left out in the cold. Consequently, this is why it’s important to sit with your agent and ask what kind of
38 November 2014 | Motorcycle & Powersports News
things are excluded or where you have minimal limits? Knowing where the holes are in your coverage is key for dealers. You can get an open lot policy that has a deductible for the policy, or you can get an open lot policy that is sold with a deductible per vehicle. How is my deductible applied? If you have a deductible per vehicle and you sell scooters, let’s say, and you’ve got 75 or 80 scooters sitting on your lot and, heaven forbid, a hurricane or tornado wipes everything out. The scooters may only cost you $600 but your deductible is $500. In this case you don’t have any real coverage. You’ll get a check for $7,500 or $8,000. However, if you have a policy that has a deductible per occurrence of $3,000 then you would have much better coverage. Most people (dealers included) buy insurance like a commodity on price alone and don’t really look at what they are getting. If you had a policy with ABC Company for 10 years and all of a sudden some agent walks in and proclaims, ‘I can beat their price by 20 percent.’ You would probably say, ‘Great! Sign me up!’ But did you ask if all of the coverages from your old policy were added to the new one? Beware of the insurance that is a lot less than what you may have had. It may
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save you some money at first, but there is something missing. Let’s say you want to go out and rent a motorhome, for instance (looking at my core business), and we say you’ve got to go to your ABC insurance to get a binder so you’re covered while you rent this motorhome. But that company doesn’t cover motorhomes. So now you’ve got to go online and get additional coverage. But you didn’t know that when you switched to this company. No matter what company you ultimately choose, you’ve got to do your homework with your insurance because there is no such thing as a free lunch. There’s no free lunch in insurance. No free lunch pretty much in life. And when some company comes in and says they’re going to save you a significant amount that you say ‘Wow, that’s a good deal!’ Beware. There’s a reason you’re saving a lot of money. The insurance companies aren’t out to give away coverage. There isn’t an insurance company out there that has found ways to give you the same coverage for 20 percent less. They are
“It's important to sit with your agent and ask what kind of things are excluded or where do I have minimum limits?” either buying your business for the first year and they’re going to raise your rates or they are reducing the amount of coverage you’re getting. Or they raise your deductible or there’s something. If they say they’ll save you that much there’s a reason why and something is different that will explain why it’s that much less expensive. Everybody looks at the cost of their policy and only compares them that way. But you really need to look into why it costs less. We (insurance companies) want to save you money, but you need to
40 November 2014 | Motorcycle & Powersports News
know what you’re buying. When there’s a loss or a problem, that’s when people often pull out the policy for the first time and read it. But that’s the wrong time to do it, obviously. Everybody does this. Stay tuned for future installments of Five Minutes With Your Insurance Man where we will cover topics from rental insurance to trailering. t
Bert Alanko is the owner and founder of MBA Insurance. MBA serves 2,300 RV and powersports dealers nationwide. For more, visit www.mbainsurance.net.
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BEST
Operators CLUB
By Steve Jones
September Service Department Performance
T
his article contains actual numbers obtained from our 20-group data reporting and analysis system. 20-groups consist of dealers from non-competing markets who meet three times a year to share financial and best practice information. Their goal is to grow and improve their businesses profitably. Chart 1 shows some key performance indicators for the overall store. These are provided as a point-of-reference for the department numbers. It is good to see the continuing trend of growth in total store sales. Total store gross margin is soft for the group average, and down from last year. The Top 5 and National Norm (NN) dealers are running right on the target benchmark of 25 percent. The benchmark for service contribution to overall store gross profit (GP) is 18 percent or more. The group and Top 5 dealers are doing well, but the NN average is down. Door swings are still trending up. GP dollars per employee looks good for the Top 5, but is trailing the NN dealer average. Keep in mind these are the Top 5 in this group, not the nation. This is one of my favorite comparables, since it is easy to calculate (total GP/total average employees) and can be used as a benchmark for any size of dealership. In Chart 2 labor margins look very good for the group and Top 5, and the NN dealers are right on the 70 percent benchmark. Service GP is calculated by subtracting tech compensation from total labor sales. The group dealers have improved by two percent since last year, which is actually a significant improvement. Operating profit continues to be flat across the board. Repair Order (RO) volume is up, but so are personnel expenses – up considerably for the Top 5 dealers. As I mentioned
CHART 1 September 2014 Total Store Stats Total Store Sales YTD
GROUP NORM 6.2 mil.
TOP 5 NATIONAL DEALERS NORM 8.1 mil.
7.8 mil.
TS Sales Percentage of Change from Prior Year
10.1%
19.9%
11.1%
Total Store Gross Profit Margin Percentage
23.7%
25.9%
25.2%
Gross Profit Margin Percentage for Prior Year
24.2%
25.9%
24.3%
Service Dept. Contribution to TS GP
19.8%
22.5%
16.7%
Logged Wrkg Contacts: Percentage of Change from PY
-2.5%
10.0%
6.5%
Door Swings: Percentage of Change from PY
8.0%
39.0%
13.1%
Gross Profit per Employee YTD
$89,203
$98,357 $109,988
CHART 2 GROUP NORM
TOP 5 DEALERS
NATIONAL NORM
Labor Margin Percentage
74.2%
79.9%
70.2%
Labor Margin for Prior Year
72.1%
80.2%
69.7%
Dept Operating Profit Percent of Change from PY
0.4%
1.1%
-0.1%
Service Dept Stats
RO Volume Percent of Change from Prior Year
7.8%
19.6%
6.3%
Personnel Expense as a Percentage of Dept. GP
48.9%
42.6%
37.9%
Personnel Exp as a Percentage of Dept. GP for PY
44.6%
25.3%
36.2%
CHART 3 GROUP NORM
TOP 5 DEALERS
NATIONAL NORM
Parts Sold to RO Labor Ratio
0.86
.98
0.98
Billed Hours per Repair Order
1.78
2.10
1.73
Billed Hours per Repair Order from Prior Year
1.80
2.47
1.77
Labor Sales per Repair Order
$140
$168
$151
Repair Orders per Service Writer / Month
-
-
201
82.7%
91.7%
75.44%
Tech Efficiency Percentage
99.7%
107.8%
101.7%
Dept. Proficiency Percentage
82.3%
91.2%
75.18%
Dept. Productivity Percentage
Average Number of Service Staff, YTD GP per Service Employee, YTD
42 November 2014 | Motorcycle & Powersports News
6.1
7.3
6.2
$45,700
$50,800
$51,043
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earlier this year, I suspect this is due to changes in service advisor compensation since they have really worked to improve the functionality of this position. They have hired and trained better people in an effort to improve customer satisfaction and department profitability. Chart 3 indicates that the parts sold to RO ratio is below the target of 1:1. Since the Service Advisor (SA) has a major influence on this number, it probably indicates that they have been covering too many ROs/month. The NN dealers are showing 201 ROs per writer, per month – way too many. Once this number gets above 175, it becomes virtually impossible for the SA to do a proper walk-around to uncover additional services and upsell appropriate services and parts. See how many average ROs per month your writers are trying to handle. You might have happier customers and make more money in service if you have more SAs who have the time to do a proper write-up. The hours per RO is below the target of two for the group and NN dealers. The SA can’t sell the additional hours if they don’t have time to do a proper presentation. All are showing decent efficiency - the target is 100% (hours billed divided by time-clock hours on ROs). Productivity and proficiency should be at least 75 percent, and they are all looking good, particularly the Top 5. This indicates that they are keeping their techs turning wrenches. I think productivity (actual hours on ROs divided by hours they were there to work) is the number to look at. You simply can’t afford to have techs pushing bikes and looking for units in the boneyard at $80 - $100 per hour. As always, GP dollars per service employee is a good comparable. How is your service department doing compared with this and the other benchmarks? Look for the opportunities and make the necessary changes to fix them. t
“Personnel expenses are up considerably for the Top 5 dealers. I suspect this is due to changes in service advisor compensation since they have really worked to improve the functionality of this position. They have hired and trained better people in an effort to improve customer satisfaction and department profitability.”
Steve Jones, GSA senior projects manager, recaps critical measurements 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 43
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OEMs Suzuki
By Robin Hartfiel
Suzuki Gets Naked In Las Vegas! Dealers See Wraps Come Off 2016 Model & More From Sin City
F
or once, what happens in Las Vegas is not supposed to stay in Vegas, as Suzuki hosted dealers and media at the Hard Rock for Suzuki’s “2015 North American Tour.” Just 547 days after declaring bankruptcy, Suzuki is back and hitting the road with some of its greatest hits – along with introducing a couple key new members of the band. Dealers were given what they have been asking for in the 2015 line-up, including the return of the DRZ-70 just in time for
Christmas, and treated to a brand new naked bike that is actually an early release 2016 model. Forget the past, Suzuki is a new company, says Suzuki Motor of America President Tak Hayasaki. This message seemed to strike a chord with dealers at “The Joint” in the Hard Rock. Less than two years after bankruptcy, Suzuki Motor of America is back on the fast track according to Hayasaki. Part of the team that brought the Hayabusa and
44 November 2014 | Motorcycle & Powersports News
GSX-R1000 series to market, Tak-san knows a thing or two about speed, however it is his candor and dealing with the crisis that really resonated. “Our industry has faced some serious challenges and we’ve had to make some tough decisions over the past few years. During these difficult times I know you all wanted and deserved more out of Suzuki … and I agree.” He added that while 2013 was one of the toughest years Suzuki has had, the
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company is back in the black. “I’m happy to announce that after just one year Suzuki Motor America is back to being profitable.” Cars are also out of the equation moving forward. “Our new company is focused on motorcycles, scooters, ATVs and the marine business. But that is not all, Suzuki Japan’s sales have increased for the past two years as well.” Being profitable makes the return to MotoGP racing in 2015 possible as well. To commemorate the return to racing, the GSX-R line gets a MotoGP livery option for the coming year. “There is no better place to start a party than at the Hard Rock,” adds Tak. So the wraps came off four all-new motorcycles, highlighted by the new naked GSX-S750 and up-spec GSXS750Z. A viral video of the naked bikes broke a couple weeks before the dealer meeting, so Suzuki decided to offer something the dealers definitely had not seen: the 2016 GSX-S1000! Also
scheduled for GSX-S1000 ABS and GSX-S1000F ABS variants, customers will not be seeing these bikes in the flesh until the middle of next year, but it did make for an intriguing sneak peek. The growing Adventure touring segment was treated to the release of the V-Strom 650 XT ABS while the entry level riders get a fully faired GW250F. King Quads are now 100% assembled in the U.S. and the 2015s are headed by the King Quad 750 AXi and 400 ASi/FSi, which are more fuel efficient and more affordable than years past as Suzuki has reduced retail prices on four ATV models and nine motorcycles. “We have rolled back pricing and are rocking 95 percent of the product line-up,” explains VP Rod Lopusnak as a preface to Suzuki’s marketshare for the various segments. “Suzuki is synonymous with the term ‘Dual-Sport’ going back to the original DRs, so we are happy to say we have 18 percent of the total dual-purpose share.
Entry level bikes are the fastest growing part of the dual-sport segment, specifically bikes in the 200cc-250cc range, so Suzuki has rolled out the DR 200S as the most affordable dual-sport model on the market. The strategy outlined by Tak Hayasaki seems to be working. Suzuki is proud of the fact that they are outpacing the market in several key categories. In the 600cc sportbike market, Suzuki is up 20 percent and in the 501cc–650cc segment they are up 21 percent, where the rest of the market was down nine percent. In the big bore 1301cc and above segment, led by the Hayabusa and big Boulevard models, Suzuki sales are up 22 percent where the rest of the industry was down approximately four percent. Looks like Suzuki is set to rock and roll for 2015-2016. “Let’s get this party started,” concluded Lopusnak. t Be sure to check out additional photos in our “enhanced” online version.
MotorcyclePowersportsNews.com 45
46 Shop Equipment 11/12/14 9:16 AM Page 46
Gear Essentials Shop Equipment Stop & Go Tire Bead Breaker
K&L Supply MC625R Heavy-Duty Air Lift The MC625R Heavy-Duty Air Lift from K&L Supply combines the best features of K&L’s MC655R hydraulic lift with the convenience of air. The new Ram Squared twin-cylinder system gives the MC625R Heavy-Duty Air Lift a rated working capacity of 1,750 lbs. Optional side panels, now with redesigned fast mount system, increase the working width of the MC625R Heavy-Duty Air Lift to 56.5 or 68.5 inches, allowing the widest utility vehicles and golf carts to be serviced. An easy to install extension is also available, adding two feet front or rear to the overall length for custom bikes. Max raised height of 40 inches and lowered height is 8.5 inches. This lift also includes an automatic safety lock, loading ramp and one year warranty.
All on-road and offroad motorcycle tire beads (up to size 160) can be easily separated from their wheel with this sturdy cast iron alloy device. As you torque a 21mm open end wrench on the spreader assembly the two hinge ears apply even pressure to the tire bead. Then it releases the tire bead from the wheel. Insert a few tire irons and your tire comes off the rim with little effort. Whether you are faced with making a repair or just changing tires this is the tool to make the job go smoother. Two by fours, C clamps, and foul language are no longer needed to successfully separate a motorcycle tire bead from it’s rim. The Stop & Go - Motorcycle Tire Bead Breaker comes individually packed with full instructions in a corrugated carton, but can be disassembled for easier portability. It weighs 5 1/2 lbs. and measures 8" x 6 3/4" x 1 3/4". ------------
Suggested retail price is $ 49.95 each. For More Info: www.stopngo.com
------------
For More Info: www.klsupply.com
Goodson Tools & Supplies Tire Changer Replacement Parts Goodson Tools & Supplies for Engine Builders has a wide assortment of replacement parts for tire changers such as Mount/Demount Heads, also known as Duck Heads, for most popular tire changers on the market, including AccuTurn, All Tool, Coats, Corghi, Hoffman, Hunter, FMC, Ranger, John Bean, Sice and Snap-On. Goodson also carries replacement Inflator Hoses, Hold-Down Cones and more. The newest addition to the product line is an assortment of Jaw Protectors, Duck Head Inserts and Rim Protectors.
Pit Posse Bandit Lift Pit Posse’s Bandit Lift will change how you work on your bike or ATV. Rated for 1,100 lbs. and only 4.3 inches tall, the Bandit Lift will get under and lift nearly all bikes and ATVs 15.75 inches off the ground, making them much easier to work on. The automatic safety locks engage as the bike is raised, and a removable handle and six-caster design create a stable yet movable platform. Constructed from heavy-duty steel, the Pit Posse Bandit Lift ensures many, many years of reliable use.
------------
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For More Info: www.goodson.com
For More Info: www.pitposse.com
46 November 2014 | Motorcycle & Powersports News
47 Roadsmith Trikes 11/12/14 9:16 AM Page 47
48,50 Suspension_Layout 1 11/12/14 9:14 AM Page 48
5 Steps to Setting Sag the Race Tech Way By Race Tech
S
tatic Sag or “Race” Sag is the amount the bike compresses from fully extended, with the rider on board. Here's how to measure it the Race Tech way. It is a little different than how you may have done it before but is much more accurate as well as consistent. This instruction uses a Sag Master so sag is measured directly with no subtracting required. This is why you see the tape starting from the axle instead of the other way around. A regular tape measure can be used but it requires a little more calculation. 1. Put the bike on a stand with the wheel off the ground. Measure the distance from the rear axle to a vertical point on the rear of the bike.
We recommend a Sag Master or at least a metric tape measure. Metric is MUCH easier than standard English units. This is L1. 2. On a dirt bike put the rider on the bike in full gear and have them stand on the pegs. The reason for standing is simple – it is consistent. Seats on dirt bikes are very long. If the rider sits on the seat in different locations it will throw the number off. On a road bike the procedure is the same except the rider should be in standard riding position – not standing. The reason for this is the position of the footpegs on a street bike can be all over the place, forward or back of the center of gravity. The best way to balance the bike is to have the rider grab onto something. It is much easier for the rider to balance the bike by himself rather than fight for balance with the person holding the bike. Compress the rear suspension
48 November 2014 | Motorcycle & Powersports News
slightly and SLOWLY release back up. 3. Measure between the same two points. This is L2. If there was no friction in the linkage it would return a bit more. 4. Lift up on the rear slightly and SLOWLY release it down. If there was no friction it would continue to drop a bit more. 5. Measure between the same two points. This is L3. The difference between lifting up and pushing down is caused by friction. This is called the “Stiction Zone.” The greater the Stiction Zone the more friction there is. If it is more than 4 or 5mm the linkage needs attention. The actual sag is calculated by averaging L2 and L3 and subtracting it from fully extended. Static sag = L1 - ((L2 - L3)/2) Note: Free Sag is the amount the bike compresses with the weight of the bike only (no rider). Use the same method as outlined for Sag. t For more information or to order a copy of Race Tech’s Motorcycle Suspension Bible, visit their website at www.racetech.com.
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Essentials Suspension Progressive Suspension 970 Series Piggyback Shocks Progressive Suspension has taken its craft to the next level with the 970 Series Piggyback shocks and are now building it for the Harley V-Rod. Inspired by racers, riders and guys that demand more of their bikes than weekend coffee runs, the hand built in the USA, 970 Series shocks combine a high pressure gas monotube design with deflective disc damping routed through two unique circuits and adjustable for compression damping via an easily accessible knob. Techy features include a shock body and piggyback that are both coated internally to reduce friction and then capped with a forged aluminum upper. The shock is wrapped with a progressive rate coil spring that can be fine tuned via threaded preload adjusters to suit a riders weight and riding style (we like them firm in the corners). Available in 12.5 in. (318mm) or 13 in. (330mm) in black or bronze anodizing. Fitment for 2007-2014 V-Rod, VRSCA, VRSCD, VRSCAW, VRSCX, VRSCDX and VRSCF. ------------
For More Info: www.progressivesuspension.com
Platinum Air Suspension Bleed Feed System Platinum Air Suspension’s best-selling and most innovative product is the Bleed Feed System. This system allows riders to control ride height and rebound. This system is controlled by positive pressure at all times and can easily be adjusted at the flip of a switch for complete comfort for the rider’s weight or road conditions. The system includes air cylinders machined from 6061 T-6 billet aluminum, air-control valve, DOT-approved 1/4" line and fitting, plus switch harness, air compressor, hardware and line cutter. The system comes complete with a one-year warranty. Platinum provides customers with four finishes: Chrome, Polished, Powder Coat and Satin (Semi-gloss). There is also the option to powder coat the choice of color. ------------
Retail price: $1,495 ------------
For More Info: www.platinumairsuspension.com
Hawg Halters Inc. Touring Bike Front End Kit Hawg Halters Inc. is now delivering a complete, fully assembled front end, ready to bolt on. This new kit begins with a choice of triple trees starting with the innovative X 23 Bolt On Triple Tree for 41mm or 49 mm applications to allow a 23 inch upgrade to a stock frame. Currently, HHI offers complete front ends for custom builds from the 23 inch wheel to the 30/32 inch big wheel kits. In addition to the triple tree selection, HHI offers a choice of Bomber or Torpedo Billet lower legs in single or dual disc configuration, in chrome or black finish, with a hidden axle and 4 bolt fender mount brackets. Currently, complete front ends come in 41 mm and 49 mm and fit right up to 2015 models. ------------
For More Info: www.hawghalters.com 50 November 2014 | Motorcycle & Powersports News
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TECH
Tips Cyclepedia Press LLC
Replacing Gaskets and Seals
S
ervicing and repairing powersport vehicles requires replacing gaskets and seals on a regular basis. Trying to reuse seals and gaskets can leave a technician in a world of hurt and wasted time redoing work. Always be prepared to replace any seals and gaskets that are removed during a service or repair procedure. Don’t accelerate the wear of that new component because it is installed with an old seal. Nobody likes to order parts over and over to complete a job. Take a look through the repair manual and identify the seals and gaskets associated with the areas of service before diving into a procedure. Don’t get focused on the hard parts and forget the gaskets and O-rings. Get all of the gaskets and seals ahead of time so that $3 oil seal is on-hand when needed and doesn’t require another trip to the parts counter or week of waiting on the mail.
A full gasket set from Winderosa has all of the gaskets and seals for the CRF250R engine.
Looking through parts diagrams trying to find all the needed seals and gaskets can be frustrating on small jobs. If you are doing an engine overhaul or major service it is even worse. The best course of action is to get a gasket set. Many OEMs and aftermarket companies like Winderosa offer gasket sets with all gaskets, gaskets and seals, top-end only gasket kits, or component specific gasket and seal kits. Ordering the correct gasket set with one part number not only is quicker, but it reduces the chance of ending up with two dust seals in place of the dust seal and oil seal that are needed. When using gasket kits take note of position and orientation of the original seals. The contents of a gasket kit may not be labeled with individual part numbers so it is up to the technician to identify the correct components, and many oil seals and O-rings can be hard to differentiate. Also, not all gasket and seal kits include crush washers. These items may need to be sourced independently.
Cylinder base gaskets and cylinder head gaskets can be difficult to identify the correct orientation. Some can be installed upside down while visually looking correct. This can result in a poor seal. Follow the service
52 November 2014 | Motorcycle & Powersports News
Don't install cylinder base and head gaskets upside down.
Lubricate oil seal lips with grease.
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Remove all old gasket material without damaging the mating surface. manual’s instructions to identify markings or construction features of the gasket to ensure correct placement. Avoid ruining new oil seals on sharp edges or threads. Use tape or plastic wrap to cover sharp shaft features to prevent seal damage when the shaft enters the seal. Also, do not allow oil seals to roll up or push out when installing a shaft into the seal.
When installing oil seals, lubricate the lips of the seal with oil or grease along with the shaft or boss that fits into the oil seal. The oil seal needs a minimal fluid film between its lips and the turning shaft to maintain a good seal and to dissipate heat. An oil seal installed dry may not seal at all, and will most likely fail prematurely. O-rings should be treated in the same manner and not installed dry unless otherwise specified by the service manual.
Apply the sealant to the mating surfaces evenly in a thin coat.
Thoroughly clean mating surfaces
prior to installing new seals, gaskets, or sealant. Follow the manufacturer’s instructions carefully if a chemical gasket remover product is used as these are some of the nastiest chemicals in the shop. Do not nick or gouge the mating surface when attempting to remove old gasket material. If the mating surface is nicked up or burred it should be smoothed out with an oil stone. If the damage is severe the mating components must be replaced.
When using a liquid gasket
sealant, have the correct type for the application as required by OEM. Sealants vary by temperature rating, chemical resistance, drying time and hardening performance. Apply the sealant to the mating surfaces evenly in
a thin coat. Do not be excessive as the extra sealant will be pushed out when the components are joined and may enter oil passages or bearings. Also, only apply sealant along with a seal or gaskets when specifically called out by the service manual. Have everything 100 percent ready to go together when the sealant is applied. The mating surfaces must be joined in a timely manner or the sealant will dry prematurely and will not seal correctly. 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.
Statement of Ownership, Management and Circulation (Act of August 12, 1970; Section 3685. Title 39. United States Code.) MPN is published monthly at 3550 Embassy Parkway, Akron, Ohio 44333-8318, Summit County. Headquarters and general business offices are also located at 3550 Embassy Parkway, Akron, Ohio 44333-8318, Summit County. Publication no. is 0164-8349. Filing date is 9/22/14. Issue frequency is monthly with 12 issues published annually. Annual subscription price is $69. MPN’s publisher is Sean Donohue. The editor is Brendan Baker, and the managing editor is Greg Jones. All are located at 3550 Embassy Parkway, Akron, Ohio 443338318, Summit County. MPN - Motorcycle & Powersports News is owned by Babcox Media, Inc., located at 3550 Embassy Pkwy., Akron, Ohio 44333. Known bondholders, mortgagees and other security holders owning or holding 1 percent or more of total amount of bonds, mortgages or other securities: none. MPN’s Extent and Nature of Circulation are: (Issue date for circulation data at right is August 2014.)
Average no. copies each issue during preceding 12 months 16,581
A. Total No. Copies (net press run) B. Legitimate Paid and/or Requested Distribution (By Mail and Outside the Mail) 1. Individual Paid/Requested Mail Subscriptions Stated on PS Form 3541. (Include direct written request from recipient, telemarketing and Internet requests from recipient, paid subscriptions including nominal rate subscriptions, advertisers’ proof copies and exchange copies) 15,535 C. Total Paid and/or Requested Circulation 15,535 D. Nonrequested Distribution (By Mail and Outside the Mail) 638 + 90 = 728 E. Total Nonrequested Distribution (Sum of 15d (1), (2) and (3) 728 F. Total Distribution (sum of 15c and e) 16,263 G. Copies not Distributed 318 H. Total (Sum of 15f and g) 16,581 I. Percent Paid and/or Requested Circulation 95.6 I certify that all above statements made by me are correct and complete. Pat Robinson, Circulation Manager
Actual no. copies of single issue nearest to filing date 16,674
15,661 15,661 673 + 35 = 708 708 16,369 305 16,674 95.8
MotorcyclePowersportsNews.com 53
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MarketPlace Find out more about the classified advertisers in this issue online at www.motorcyclepowersportsnews.com/resourcecenter.
www.MotorcyclePowersportsNews.com/BuyersGuide To update your listing or be added to the 2015 Buyer's Guide, contact Brendan Baker at baker@babcox.com or call 330-670-1234 ext.228.
w
Business Intelligence for Powersports Dealers
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Ad Index www.motorcyclepowersportsnews.com/resourcecenter
ADESA Specialty Auctions . . . . . . . . .12 Air Suspension Parts by Arnott, Inc. .50
All Balls Racing Products . . . . . . . . . .49
British Cycle Supply . . . . . . . . . . . . . . .48
Carlson Company, The . . . . . . . . . . . .37 CDK Global Recreation, formerly ADP Lightspeed . . . . . . . . .29
Cometic Gaskets . . . . . . . . . . . . . . . . .10
Deltran/Battery Tender . . . . . . . . . . .15
Dominion Enterprises . . . . . . . . . . . . .21 EMGO International . . . . . . . . . . . . . . . .7 Engine Ice . . . . . . . . . . . . . . . . . . . . . . .36
Fulmer Helmets . . . . . . . . . . . . . . . . . .25 Gibbs Technologies Inc. . . . . . . . . . . . .27 Helix Racing Products . . . . . . . . . . . . .48 K & L Supply Co. . . . . . . . . . . . . . . . . . .C4
Lonski and Associates, LLC. . . . . . . . .26 Marketplace Events/AIMExpo . . . . . .19 MBA Insurance . . . . . . . . . . . . . . . . . . .40
Mercedes-Benz USA . . . . . . . . . . . . . . .3
CALL
Jennifer Hazen 330-670-1234 ext. 224 jhazen@ babcox.com
RTISE TO ADVE IED SIF IN CLAS ACE L P T E K R MA
MTA Distributing . . . . . . . . . . . . . . . . .51 National Powersport Auctions . . . . . . .5
Rizoma USA . . . . . . . . . . . . . . . . . . . . . .9
Roadsmith Trikes . . . . . . . . . . . . . . . . .47 ROKstraps . . . . . . . . . . . . . . . . . . . . . . .24 Service Manager Pro . . . . . . . . . . . . . .43 Sullivans Inc./Joe Rocket . . . . . . . .1, 35 Tucker Rocky . . . . . . . . . . . . . . . . . . . .11 Vega Helmet Corp . . . . . . . . . . . . . . . .C3 VP Racing Fuels Inc . . . . . . . . . . . . . . .C2 Vroom Network . . . . . . . . . . . . . . . . . .41 Wizards Products/RJ Star Inc . . . . . .13 XY Powersports . . . . . . . . . . . . . . . . . . .8 Zep Inc./Original Bike Spirits . . . . . . .17 Zerust Products . . . . . . . . . . . . . . . . . .43 Zurich . . . . . . . . . . . . . . . . . . . . . . . . . .39 MotorcyclePowersportsNews.com 55
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On Any Sunday: The Next Chapter Motorcycles Take To The Red Carpet
I
t is safe to say that no movie has done more to promote the powersports industry than Bruce Brown’s immortal classic On Any Sunday. When it hit the big screens in 1971, motorcycle and scooter sales boomed as an entire generation embraced twowheels. The true-to-life stories chronicled in OAS even earned an Academy Award nomination. Safe to say that short of Sochiro Honda, nobody put more butts on bikes than Bruce Brown. Flash forward 43 years to the Dolby Theater on Hollywood Boulevard for the red carpet premiere of On Any Sunday: The Next Chapter. Dana Brown, Bruce’s son and maker of Dust To Glory and Step Into Liquid has produced a sequel that is worthy of the legend. Shot in Dolby’s “Ultra HD” the visceral experience captures the motorcycle experience … while the technology has advanced, the core focus of the film remains the same: capturing the essence of motorcycling and the people who ride.
Judging from the response of the gray beards who remember hiding in the bathroom at the movies to sneak into a second showing, to the skinny jeans/flannel/facial hair folks in the crowd, The Next Chapter captures some of the magic of the original. Hopefully the same seminal experience translates into another surge in the motorcycle industry. With widespread distribution set for November 7 in more than 400 theaters nationwide, MPN rates this flick two thumbs up! For tickets: www.onanysundayfilm.com t
56 November 2014 | Motorcycle & Powersports News
C3 Vega 11/12/14 9:19 AM Page C3
C4 KandL 11/12/14 9:19 AM Page C4