Motorcycle & Powersports News, February 2014 by Babcox Media

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MotorcyclePowersportsNews.com

FEB. 2014 VOL. 40 NO. 2

Ricky Carmichael University teaches students everything they need to know from the Greatest Of All Time Plus: • Eric Anderson's Confessions • Vetesniks Power Sports • UTV Tires & Accessories

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Contents

Volume 40 Number 2 MotorcyclePowersportsNews.com

Ricky Carmichael University: Inside the Legend’s Training Program

EDITORIAL

By Robin Hartfiel

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

Editor – Brendan Baker bbaker@babcox.com

Cover photo by Lissa Marsolek Photography

Managing Editor – Greg Jones gjones@babcox.com

Dealership Operations Celebrating 40 Years of MPN

Columnists & Contributors

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Eric Anderson Steve Dodds II Steve Jones Mark Rodgers Gary Ilminen Jim Woodruff

The Road Ahead by Brendan Baker

Shifting Gears

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All the News that Fits by Robin Hartfiel

HIP-sters vs. HIP-pies

ART Sr. Graphic Designer – Tammy House thouse@babcox.com

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Confessions of a Customer by Eric Anderson

December in Review

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NPA Pre-owned Monthly Recap by Jim Woodruff

Seperating the Best From the Rest

Official Publisher of the AIMExpo Show Daily, Directory and Souvenir Program

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Finance & Insurance by Steve Dodds II

Dealer New Units in Stock

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Inventory Report by ADP Lightspeed

What Makes Them Click?

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Peak Dealership Performance by Mark Rodgers

Yamaha Unviels Lease Programs

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PWC Update

Do You YouTube?

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Web Savvy by Heather Blessington

Off Road Gear Essentials

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Moto Gear

2013 Year End Dealer Data Report

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Best Operators Club by Steve Jones

UTV Tires & Accessories UTV Tire Roundup An All-Star Line Up of ATV and UTV Tires .................................... 34

UTV Accessories The Real Winners at the Anaheim Supercross

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Extras to Outfit Your UTV Offerings.............................................. 36

Pit Pass 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.

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THE

Road AHEAD

By Brendan Baker

ADVERTISING SALES Publisher - Greg Cira Associate Publisher Sean Donohue

gcira@babcox.com (330) 670-1234 ext. 203 sdonohue@babcox.com (330) 670-1234 ext. 206

Display Advertising Sales Roberto Almenar Tom Staab Bobbie Adams

A Golden State, Italian Opening, Motorcycle Show and Turning 40

anuary was a busy month for us and for many of you as well. The AMA Supercross season kicked off in Anaheim while winter set in for most of us back East. But we did get to spend part of the time in sunny California, visiting with some of you in the industry. Seeing you at trade shows and talking to you on the phone is great, but it’s not the same as being able to visit you at your place of business and see your day-to-day operations up close. One of our visits included a stop at the new Italian Trade Commission offices in Los Angeles, where they not only fed us snacks but unveiled a new logo, too. We headed back home to Cleveland just in time to visit the International Motorcycle Show. And while the weather outside was frightful, the show inside was rather delightful as there was a large crowd all three days, and exhibitors were more than pleased with the turnout. Of course, one of the biggest attractions was the Ultimate Builders Competition, which our friends at Northern Ohio Ducati Triumph took second place in with their rather unique GT1000 café bike. Finally, for those of you old enough to remember and experience the decade of the ’70s for what it was, which were glory years for many in the motorcycle industry in many ways, this year marks some milestones: “Good Times” premiered on CBS. People Weekly magazine's first issue was released with actress Mia Farrow on the cover. Barbra Streisand got her first #1 hit song with, "The Way We Were." The F-16 fighter jet flew for the first time. The oil crisis of 1973 came to a close as most OPEC nations ended their months-long oil embargo in March of 1974. Lost in these headlines was the launch of a little publication aimed at motorcycle dealers. Issued at the end of 1973, the first edition was called the Motorcycle Trade Directory. I’m sure someone still has that one laying around. This directory was really the beginning of the monthly magazine MPN, but it wasn’t until Issue 2 that it became Motorcycle Product News. Both issues were considered Volume 1 with Issue 2 being published in June of ’74. Why the boring details about issue and volume numbers? Well, depending on what you take as our first issue, this year marks our 40th anniversary. I am barely that old myself and I have quite a few aches and pains, but MPN still looks great for its age. We will go into the archives throughout the year to celebrate this momentous milestone. t

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

ralmenar@babcox.com (330) 670-1234, ext. 233 tstaab@babcox.com (330) 670-1234, ext. 224 badams@babcox.com (330) 670-1234, ext. 238 dbasford@babcox.com (330) 670-1234, ext. 255 dbenson@babcox.com (330) 670-1234, ext. 210 dmartin@babcox.com (330) 670-1234, ext. 225 jmerle@babcox.com (330) 670-1234, ext. 280 gwarner@babcox.com (330) 670-1234, ext. 212 jzick@babcox.com (949) 756-8835 dhemming@babcox.com (330) 670-1234, ext. 286

ADVERTISING SERVICES Advertising Services Valli Pantuso

vpantuso@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, Directory and Souvenir Program

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 18004 Skypark Circle, Suite 260, Irvine, CA 92614 (949) 756-8835 Fax (949) 756-8836 CORPORATE Bill Babcox, President Greg Cira, Vice President, Chief Financial Officer Jeff Stankard, Vice President Beth Scheetz, Controller Copyright 2014, Babcox Media, Inc.

Brendan Baker, Editor 4 February 2014 | Motorcycle & Powersports News

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RE: BACKFIRE RE: Babcox Announces Addition Of Anderson

RE: Eric Anderson On Board, Part II

Glad to hear that Eric Anderson is gainfully employed and no longer sponging off the unemployment coffers … well at least his column has found a new home. Hopefully, others will read Eric's “Confessions.” Unfortunately, those who need it most will be the least likely to read or act. My latest rant is regarding the proliferation of “cookie cutter” stores, offering the consumer nowhere to shop for the newest, coolest stuff other than the Web. Harley-Davidson, BMW, Ducati, Triumph… all have cookie cutter stores. Even though I have three Duc’s, I rarely browse any of the six Ducati dealers in my territory as they all have the same accessories on the same shelf of the same kiosk in the same place on the same black slate floor. I’ll know it’s time to retire when I see Ural stores with this format appearing in my territory!! But seriously, if Mr. Dealer buys into the "Brand" image thing and displays only the OEM stuff, so the consumer’s only option is to look for his new jacket online. He may, after sitting in his underwear at 2 a.m., determine the gear his dealer had is his choice, but now he’s home and....“Well, I’ll order it online.” Don’t have to trek back to said dealer… Paul Schwab WPS, Inc.

Good to see a knowledgeable guy like Eric Anderson joining the staff at MPN. Congrats! Dennis Cox, Publisher Dirt Illustrated

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RE: Two For One I just saw the news on Robin Hartfiel and Eric Anderson joining MPN's team. Congratulations! MPN now has the best and the brightest in the business. Frank Esposito, President Kendon Industries, Inc. Editor’s note: Thanks for your replies, we are doing our best to make MPN relevant to its readership. If there are industry issues that we should be addressing, please feel free to let us know. We welcome all comments, criticisms and commentary! Motorcycle & Powersports News is your publication and we want to know what is on your mind. Please send your letters to bbaker@babcox.com. t

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Inside the Industry AMA Pro Racing Competitor Tommy Aquino Killed in Motocross Crash AMA Pro Racing is deeply saddened by the tragic loss of competitor Tommy Aquino on Feb. 2, 2014. Aquino was involved in a two-rider accident at a motocross track near Santa Clarita, Calif., where he was pronounced dead and the other rider seriously injured. Aquino was just 21. During his years as a valued member of the AMA Pro Road Racing community, Aquino became known for his racing talent. Aquino earned a victory on a YES/Graves Motorsports Yamaha in the Daytona SportBike class at New Jersey Motorsports Park in 2011. Last year Aquino competed in the British National Series. Aquino was a sponsored rider with LeoVince USA. The company’s President and CEO, Tim Calhoun, released this statement: “A sincerely sad day for American road racing as it was announced ... that Tommy Aquino died while training at a Piru California motocross facility. From myself having watched him from amateur to pro rider my heart aches for his family. My thoughts and sincerest condolences go out his parents Carrie and Tom Aquino for their loss.” t

Giant Loop Expands Canada Distribution with Motonation Canada Adventure-proof packing systems innovator, Giant Loop, has appointed Motonation Canada as its international distributor in Canada. Headed by powersports veterans Syl and Shawna Marleau and Vince Harker, Motonation Canada imports and distributes top motorcycle exclusive brands such as Sidi, Forcefield, AGV Sports, Vemar, Powerlet, Mefo Tires as well as Rox Risers and Techniche. Sly Marleau manages dealer sales for Motonation. Previously, he was Klim Canada’s Eastern Canada sales manager, Powerlet Canada distributor/sales manager, and he previously worked as district sales manager for Yamaha Motor Canada for 12 years. He created the brand image for Klim in Eastern Canada. Marleau is based in Keswick, Ontario. Shawna Marleau manages eastern operations, supporting Syl, who is on the road visiting dealers throughout the year. Former owner of DCI Sales, Vince Harker founded the company in 1995. He is business manager for Motonation Canada and is based in Magrath, Alberta. Giant Loop’s adventure-proof motorcycle gear packing systems are available from select international distributors, as well as from a network of premium dealers throughout the USA. t

Dealers Kick Start Inaugural Husqvarna Motorcycles Conference at Anaheim Supercross Many of North America’s top powersports business professionals converged in Anaheim this past Saturday, Feb. 1, 2014, for a night of fun and racing before preparing to head to Temecula, Calif. where they will become part of the historic renewal of one of the most venerated brands in motorcycling. MotorcyclePowersportsNews.com 7

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Inside the Industry The 300-strong group spent Saturday evening trackside enjoying round six of the AMA Supercross series – a suitable precursor to the days ahead – before heading to Temecula Wine Country where they will learn about the all-new generation of Husqvarna Motorcycles, join in the christening of the brand new company headquarters, meet key management and enjoy some product sampling. “Just like their customers, motorcycle dealers are adrenalin junkies, too,” said Brad Hagi, VP of sales, Husqvarna Motorcycles North America, Inc. “With all the exciting products and initiatives we’ll share with them this weekend it seemed natural to bring them here to a Supercross race to kick off this historic event.” Since the acquisition of Husqvarna Motorcycles just over a year ago, this is the first time current and prospective dealers will have the opportunity to see what form the iconic brand has taken. Following Saturday’s fun in Anaheim, dealers will participate in the unveiling of the new U.S. company headquarters in Murrieta. Over the course of the weekend participants got to know the people behind the brand and learned about the initiatives of the brand. The conference wrapped up with a day of riding and evaluating the all-new Husqvarna Motorcycles at The Ranch in nearby Anza, giving dealers the “hands-on” feel for the models and accessories that will soon be on their dealership floors. “It’s been a busy year behind the scenes,” Hagi added. “We’re very excited to pull back the curtain and show everyone what we’ve accomplished. We’re really excited to have the all-new Husqvarnas start arriving in dealerships as early as March.” t

MotorcycleIndustryJobs.com Celebrates 10th Anniversary Whether you just graduated from the Motorcycle Mechanics Institute or have been a front-line sales pro for the past 25 years, prospective employers still need to know you are available. MotorcycleIndustryJobs.com has specialized in getting qualified candidates presented to everyone from the leading OEMs and aftermarket operations all the way to the dealership level for the past 10 years. “Even if you are currently employed, we encourage you to upload your resume today,” says MIJ founder, Alex Baylon. “Hundreds of opportunities never get posted on MIJ, but prospective employers browse the MIJ resume database everyday. Even if you’re not looking for a new opportunity, a new opportunity could be looking for you.” The first step is to register and post a resume. To facilitate this process, MIJ software allows job seekers to build up to five 8 February 2014 | Motorcycle & Powersports News

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Inside theIndustry resumes with five distinct cover letters. Using a Web application template, upload any type of file, or upload your LinkedIn data. You can also add photos, upload videos, attach files and preview your resume before it gets posted. If you have already created a resume for LinkedIn, register using your LinkedIn account to allow resume auto fill and synchronizing. Further expanding the reach is a series of strategic partnerships with leading websites ranging from Motorcycle & Powersports News and CycleTrader.com to Facebook, LinkedIn and Indeed. “For your convenience, we feed our jobs directly onto some of the highest traffic websites in the powersports industry,” says Baylon. “But we are always looking for ways we can enhance the experience.” To celebrate the 10th anniversary of MotorcycleIndustryJobs.com, people who posted resumes in the month of January were eligible to win a Trekker Fly Helmet and other prizes, drawn at random. t

American International Motorcycle Expo Now Four Days Marketplace Events Motorcycle Group, producer of the American International Motorcycle Expo (AIMExpo), has announced the 2014 show will be a four-day event held on Oct.16-19, 2014. Last year’s inaugural event was five days.

In the short time since the launch of AIMExpo, show management has received a significant amount of feedback from the powersports industry hailing the event as much needed and an overwhelming success. Based on input received, and keeping with AIMExpo’s mission of providing the most effective and efficient platform for B2B and B2C commerce, AIMExpo will be streamlined by one day.

Orlando, Fla.’s Orange County Convention Center remains the host venue for the event. Exclusive trade and media days will be held on Thursday and Friday (October 16-17) with the show expanding to include consumer attendees on Saturday and Sunday (October 18-19). AIMExpo is powersports’ only combined trade, media and consumer event in North America. “Since the beginning, a core goal has been to serve as a catalyst for change,” said Larry Little, general manager, Marketplace Events Motorcycle Group. “This means listening and responding to

the needs of the industry. Our post show surveys of exhibitors, trade and consumer attendees, coupled with the extensive conversations we have on a daily basis with our customers and partners, clearly pointed us to the decision to go to four days.” The new four-day format will ensure AIMExpo remains a highly-productive and well-organized event while increasing the efficiency and cost effectiveness for all participants. The inaugural AIMExpo featured 392 exhibitors including manufacturers and distributors Yamaha, Erik Buell Racing, Suzuki, KYMCO and Tucker Rocky/Biker’s Choice, among others. AIMExpo 2014 has already booked over 200 exhibitors and is on track to surpass the launch year in both size and scope. PowerSports Business Institute @ AIMExpo, the events’ highly regarded industry education program, will also return offering attendees invaluable learning opportunities not found anywhere else. Additionally, Motorcycle & Powersports News, the event’s official media sponsor, will again be producing AIMExpo show publications including the Show Directory, Show Dailies and Souvenir Consumer Program. t

AMA Announces 2014 Award Recipients The American Motorcyclist Association (AMA) has announced the recipients of its 2014 AMA Awards. The six national

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Inside the Industry awards, conferred by the AMA Board of Directors, recognize outstanding contributions in the world of motorcycling and acknowledge support of the AMA mission to promote the motorcycle lifestyle and protect the future of motorcycling. The most prestigious of the awards, the AMA Dud Perkins Lifetime Achievement Award, was given to Mike and Margaret Wilson of Cedar Rapids, Iowa, for their lifelong commitment to fostering the growth and acceptance of motorcycling, and their dedication to the AMA and its Hall of Fame. Other 2014 award recipients include: • AMA Bessie Stringfield Award Scot Harden, vice president, Global Marketing, Zero Motorcycles • AMA Hazel Kolb Brighter Image Award had two recipients - “Why We Ride” feature film by James Walker, Bryan H. Carroll and Chris Hampel, and “Road Warriors, The Bleeding Edge of Motorcycle Racing” feature film by Matt Greenstone • AMA Outstanding Road Rider Award - Donald L. Green, lead instructor, Fort Knox, Kentucky Army Traffic Safety Training Program Office, and Motorcycle Safety Foundation rider coach with the Kentucky Motorcycle Rider Education Program • AMA Outstanding Off-Road Rider Award - Jim Pilon and Paul Flanders,

AMA District 37 Dual Sport organizers and promoters of the LA-Barstow-Vegas desert event • Friend of the AMA Award - Roy Garrett, AMA life member, ABATE of Indiana and Discover Indiana Riding Trails (DIRT). t

AMSOIL Announces Specialized Oil Sweepstakes AMSOIL has kicked off the Specialized Oil Sweepstakes program to land one lucky winner and a guest an all-expensespaid getaway to Big Sky Montana in the winter of 2014-2015. The grand prize includes round-trip airfare, fourday/three-night hotel lodging, sled rental, two-day guided snowmobile tour and $500 in spending cash. This once-ina-lifetime AMSOIL-sponsored getaway opportunity will be a memorable life experience, the company says.

Contest entry forms can be found at any of the following AMSOIL-sponsored snowmobile racing series events taking place now through March 31, 2014:

• AMSOIL Championship Snocross (ISOC) • Canadian Snocross Racing Association (CSRA) • East Coast Snocross (ECS) • AMSOIL Eagle River Snowmobile Derby The Specialized Oil Sweepstakes is only eligible for participants in the United States, District of Columbia and Canada (excluding Quebec). Sweepstakes end March 31, 2014. t

Hein Gericke Reportedly Bought by Chinese Investors Following its insolvency filing in December, industry reports suggest that Hein Gericke Deutschland GmbH has been acquired by the Barcelona headquartered group of Chinese investors that is headed by Arthur Liao, the owner of Chinese helmet manufacturer LS2. Some 54 of Hein Gericke’s 85 shops in continental Europe are in Germany, with other shops in The Netherlands, Belgium, Poland and Austria. However, the deal does not include the British Hein Gericke company, with some 12 of the 16 UK stores reportedly being bought by British apparel retailer J&S Accessories. Arthur Liao founded LS2 Helmets in 1990 and created a head office in Barcelona in 2007. The takeover of the Hein Gericke retail network would help fuel the growth ambitions of LS2, and that the takeover will become effective with the formal insolvency declaration. t

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By Robin Hartfiel SHIFTING GEARS Printing All The News That Fits

he demise of pioneering print publication IronWorks was just one of the many ripples in the V-Twin industry pond announced just before the V-Twin Expo in Cincinnati. Always an odd fit within its portfolio of trade publications for the woodworking industry, Hatton-Brown has announced it will stop producing the print version as of the March 2014 issue. Founded by the late Dennis Stemp in 1989, HattonBrown bought the book in 1995 as its first consumer magazine. •••• Undaunted, editor/publisher Marilyn Stemp plans to bring IronWorks back, but as Iron Trader News (the name Dennis originally started with in 1989). “First up is the ITN Facebook page, then the website and blog,” she explains. “We’ll follow with a full-fledged digital magazine at a totally retro subscription price, especially considering the superior quality of its unique content. With your interest and support, subscriptions to the print version of Iron Trader News won’t be far behind.” Like them on Facebook or click on http://irontradernews.com to follow the progress. •••• In more magazine mayhem, Greg Jones joined the MPN staff. Greg joined MPN parent Babcox Media in January 2014 and currently serves as managing editor of both Motorcycle & Powersports News and Engine Builder magazine. He is also content specialist for Speedville.com. Prior to joining Babcox, Greg worked for Smart Business magazine from 2010 to 2013 as an associate editor. Greg has a bachelor’s degree in journalism from the University at

Albany, State University of New York. Contact Greg at gjones@babcox.com or (330) 670-1234 ext. 272. •••• Also news to the V-Twin crowd is the fact that former Progressive Suspension stalwart Pat Lovro becomes the director of outside sales for Vance & Hines. “I am very excited about this opportunity and with the support received from all of you in the industry,” says Lovro, who many dealers will know from his in-depth suspension training courses taught at the dealership level. Lovro now reports to Mark Finnie who recently rolled over from Performance Machine to take over at Vance & Hines last fall. •••• Unrelated to Lovro’s leaving, but still pertaining to Progressive Suspension is the fact the firm is looking to hire a mechanical project engineer. The “progressive” company is looking for a hands-on mechanical engineer to lead the development of motorcycle accessories from the concept phase to volume production launch. If you are interested in this position, please send your salary history, resume and cover letter detailing your relative experience and interest to: hr@progressivesuspension.com •••• More V-Twin related moves announced in January included former CCI/Custom Chrome Europe head honcho, Holger Mohr moving from Mustang Seats to become president of Küryakyn. Company founder, Tom Rudd takes over as chairman and can focus on his passion for R&D and creating new products while Mohr addresses day-today operations for the aftermarket accessories company. “I am really looking forward to kicking Küryakyn into overdrive,” says Mohr. Serious race fans

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may remember Rudd from his drag racing days, but it is the true industry insiders that know Tom actually founded Drag Specialties. He launched Küryakyn back in 1989 after selling Drag Specialties to Fred Fox at LeMan’s Corp. •••• Auction action! Mecum Auctions has taken a financial and marketing stake in MidAmerica Auctions. Mecum’s active involvement with MidAmerica began in January with the 23rd Annual Las Vegas Motorcycle Auction & Races. As Mecum Auctions continues to grow, the company will expand into the motorcycle auction market via the MidAmerica auction brand. MidAmerica founder Ron Christensen will bring his 25 years of auction expertise to his new role as president of Mecum’s motorcycle division. The first joint venture was selling off the “The Evolution of HarleyDavidson Motorcycles” collection, headlined by a 1911 7D Twin (pictured). “The George Pardos Collection is one of the finest groups of Harley-Davidson motorcycles I have ever seen,” commented Christensen. “I’ve seen a lot of bikes cross my path over the last quarter century, but nothing quite like this when it comes to Harleys.” •••• Heads up: Arai Helmet, Inc. has appointed Louisville, Ky.-based Doe-Anderson as its new agency-of-record. “We’re excited to begin working with Doe-Anderson and look forward to the fresh voice that they will bring to our brand,” said Brian Weston, Arai’s managing director. “Their expertise in brand development within the powersports and premium product industries uniquely aligns with the needs of Arai.” For an extended “Shifting Gears” section visit the MPN website. t

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Confessions OF A CUSTOMER

By Eric A nderson

HIP—ster vs. HIP—pie

onestly, modern hipsters are just vintage hippies in sheep’s clothing. A bit more academic, well-trimmed and technosavvy. Cool. So, too, are the interesting and uniquely assembled hip-cult machines of today which rhyme with neo-retro, rat, café, chop-cult or el chollo. Gone are the extended front ends, 300series tires and chrome glitz. These fads have been replaced by a whole new generation of younger and more earthy machines subscribing to murdered-out flat black paint, asbestos-wrapped headers, funky handlebar ergos and Easy Rider, Jack Nicholsoninspired football helmets with DOT certifications. Did I mention these trends are being driven by a market under 30 years old? Goodie for us … at last. Of course, if you don’t cuff your jeans over your RedWings in this crowd, you might not get past the self-appointed arbiters of cool. Just kidding — this is actually the most relaxed generation since free love and Mary Jane. It’s no different than the 1970s, just without the headbands, tie-dye shirts and moccasins. Replace “Easy Rider” with “Why We Ride” as the inspiration for this next generation of motorcyclists (your customers). It’s funny how the indicators don’t really change: clothes, music and motorcycles remain the benchmarks, but now with a fashionable twist. Besides the fashions and the machinery, the vocabulary tends to change too. Last month we looked at the Motorcycle Industry Council/Experian definitions of customers. Now we examine the shift in vocabulary. The trick is how do us aging hippies communicate with the hipsters of Generation Next? It is like they have a different word for everything (you hipsters should Google wild and crazy guy, Steve Martin for that reference). So do any of these terms remind you of the past … or do they demonstrate just how out of touch you are with the future? Chillaxin: A combination of two older favorites — “chillin” and “relaxin” — chillaxin. Usage: “I’d like to be chillaxin after my second moto in my sled … with a brew and a rack.” Two decades ago it was synonymous with “kickin back” before I “kick ass” in the next race against Barry Sheene, Roger DeCoster or James Hunt.

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Rack: A rack is what you think it is, but sometimes super-cool hipsters choose “rig” or “rack spotter.” Usage: “A rack from 2014 isn’t quite a pit tootsie from the 1970s, nor a TLU (TightLittle-Unit) from the ‘90s.” Disgusting? Well, it was the ‘70s … and the ‘90s. Totes: An abbreviation of the word “totally,” because the hipster’s time to say the extra syllable is too time consuming. Usage: “I think that biker with the 6-pack abs is gorge … totes.” Tassel: Girl or girlfriend. Usage: “How does that last-place racer get a new tassel every night?” Piece: Cell phone. Sounds like a .38 cal. revolver, right? No, it’s the modern word for the hipster’s weapon of choice — the smart phone. Usage: “Sling over my piece — I gotta text my tassle.” Mouse Potato: Instead of a couch potato, this person works his mouse-equipped computer all day as a means of communication to the living world. Usage: “Stop being a mousepotato and go outside to sell some bikes.” Cross-titute: A young woman who hangs around the Supercross pit areas trying to get picked up by riders. Usage: “Did you see all the cross-titutes hanging around the Monster tent at A2?” Man-wichism: Having three males on a couch watching TV or playing video games together. Usage: “The TV coverage of the race was so good we had a case of man-wichism happening in the living room.” Panic Mechanic: A shrink, psychologist or psychiatrist. Usage: “Billy is about to freak out on the starting line. Call in his panic mechanic.” Café Cruisin: A repeat of “tavern-to-tavern” racing from the Ace Café days, except 60 years later. The cafés just serve a new kind of genetically modified food than they used to. Usage: “Gotta go café cruisin before Applebee’s closes at 10.”

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Monae Mulisha: Bling meets military. Excess bleeds over function. Confused or intrigued? The slang for either “sole advisor” or “big bucks”… bonds with battalion. You’re supposed to tune in to ‘80s haircuts, big Caddies, incurable male behavioral malfunctions and a juxtaposition of the tendrils holding the X to the Y chromosome. Usage: “He’s suffering from Monae Mulisha Syndrome — maybe related to his previous case of testosterone poisoning.” FOMO: The “Fear Of Missing Out” has made us all over-stressed, overcommunicated and over-interrupted. It is driving us to earlier deaths than the generation before us for the first time in history. Usage: “He’s gonna drive himself off the edge from FOMO.” 2-Wheeled Land Yacht: This isn’t a new meaning, but there are some recent additions to the category. Usage: “Those new ADV bikes with suitcases on their sides remind me of 2-wheeled land yachts on the horizon.” BMW: “Burly Mountain Woman” has been around for a while. But it’s timeless and totally gender biased. It could change to “DDD” for Duck Dynasty DoDos if it makes you feel better. Usage: “Wow! She bench-pressed that F800 like a twig. Now that’s a BMW!” It doesn’t matter what generation you look at. If they ride motorcycles, surf on boards or race cars, they all have their own jargon which connects them to the club. It’s no different now … except for the fact that word travels faster. Much, much faster … so pay attention! Stop checking out that cross-titute, pull out your piece and Google that! t The long-running Confessions of a Customer™ is one of columnist Eric Anderson’s commitments to the industry, which includes his retail sales training efforts and service to the MIC Board of Directors. He has built several well-known aftermarket brands and is the founder of Vroom Network, an industry-specific consulting company specializing in marketing, training and brand development.

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Recap

Pre-owned monthly

By Jim Woodruff

NPA Pre-Owned Monthly Recap December in Review

ith 2013 in the rearview mirror, we can see that it was a year of mild contrasts in the pre-owned wholesale market. Almost all product categories followed a normal seasonal wholesale price curve, yet several categories exhibited lower average wholesale pricing than 2012. ATV values were fairly consistent compared to 2012, while sport bikes had a softer summer and fall than the last few years. Both domestic and metric cruisers had softer performance than 2012, with metric cruiser values softening in early summer after this year’s cold, wet spring, and domestic cruiser values softening in October with the launch of 2014 Rushmore bikes. As 2014 drew closer, dealers began buying with new confidence, with December’s strong performance providing a glimpse into powersports dealers’ expectations for 2014. Wholesale values for seven out of the nine major product categories that make up the pre-owned wholesale market were up in December over the average of the three months prior. This is similar to the upswing in December of 2012 as dealers optimistically approached 2013. Yet, December 2013 outperformed December 2012 in all categories except the cruiser and sport categories. This suggests confidence this spring season will be more temperate despite the harsh winter so far, as well as confidence that consumer optimism and strengthening pre-owned retail financing programs will encourage retail sales. We expect 2014 seasonality to follow normal curves, with wholesale values rising another 5-10 percent across various categories into April, then declining somewhat in the summer months as retail demand wanes. We do not expect the same degree of softness however, provided that this coming spring’s weather is more moderate and economic conditions hold steady. 2014 should be a good year for the powersports industry. All data provided for this column is copyrighted by National Powersport Auctions (NPA). For more information, please visit www.npauctions.com or call 888-292-5339. t

MPN has partnered with NPA to provide our readers with a monthly recap of pre-owned wholesale powersport sale results. National Powersport Auctions is the largest provider of pre-owned vehicles, selling approximately 5,000 each month. We hope you enjoy this new segment.

18 February 2014 | Motorcycle & Powersports News

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Finance Insurance

By Steve Dodds II

Separating the Best From the Rest

t the end of every year, I like to look back and see what went well for our dealers and what didnâ&#x20AC;&#x2122;t go so well. This year, I noticed a definite trend in the F&I PVS (Per Vehicle Sold). Most dealersâ&#x20AC;&#x2122; numbers were, on average, flat or a little bit up. When I separated the top 10 percent from the average dealers, I saw a different trend. The top 10 percent were up between 20 and 30 percent over last year. Why?

Metric 2013 2012 HD 2013 2012

Average $432 $430 Average $1038 $975

Top 10 percent $865 $612 Top 10 percent $1283 $988

A lot of dealers made more money in 2013 than they did in 2012 due to the fact that there are fewer dealers in their market than there were several years before, or because they are in an area where a particular industry is booming (such as oil or natural gas). The problem is that all of this will pass eventually. The market will change, new dealerships will open and booming industries will slowdown. You need to get more out of every customer so that when the industry catches up with demand, you can still make the money you need. So, what is the top 10 percent doing to get more out of every customer? Here are three things that stick out: They are NOT satisfied with being average As in any sport, you will only play as well as the people to whom you compare yourself. If you are always comparing yourself to the average, you might feel good about where you are, but you will never be one of the best. These dealers always compare themselves to the best, and that is why they succeed.

They train their people Good training is not cheap but the hidden price of not training will cost more in the long run. The top 10 percent of dealers all take advantage of industry training. With many options out there for training (manufacturers, service providers, or dedicated training companies), there is

20 February 2014 | Motorcycle & Powersports News

something to fit dealerships of any size. The top 10 percent all take advantage of what is out there. A wise man once said: The only thing worse than training an employee and watching them leave is not training them and watching them stay. They follow through on what they say they are going to change Providing or participating in training is only half of what it takes. Itâ&#x20AC;&#x2122;s equally important to make the commitment, and to follow through on the implementation of what is learned. You might have heard the saying that the definition of insanity is doing the same thing over and over again expecting different results. Improvement requires change, and the top 10 percent change. If you are in the top 10 percent, then good for you! You get it. You change with the times, and you will be in business through good times and bad. No matter what the market throws at you, you will adapt to the changing conditions and make the best of the situation. If you are not part of the top 10 percent, there is still time to change. If you choose, today can be the first day of the rest of your life. Choose to make 2014 your best year ever in the industry! t

Steve Dodds II is a moderator, trainer and consultant for Gart Sutton and Associates with experience in every position in the sales and finance departments. Dealers rave about his ability to identify areas for improvement and implement the changes that produce superior results. If you have questions about what he or one of our other talented consultants can do for you, contact us at info@gartsutton.com.

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ADP Lightspeed Dealer Management Solutions are designed to help manage dealer operations by tracking and storing data from every department and delivering information that will assist dealerships in making successful business decisions. Every night, more than 1,600 Lightspeed powersports dealers automatically transmit their information to a collective database held at the ADP Lightspeed offices in Salt Lake City, Utah. Summaries and aggregated reports are available to dealers for both current tracking and historical research. This helps you know how your dealership is performing compared to other dealers across the country. Parts and major unit inventory information is gathered and used in the highly successful Lightspeed Dealership Locator program. This program is designed for dealers to post obsolete inventory, allowing other dealers from across the country to locate hard-to-find parts and units. ADP Lightspeed stands ready to work with all parties and move the industry to new levels of understanding, and ultimately to more efficient and profitable operations. For questions regarding this report or to inquire about a custom report, please contact Lightspeed Data Services at (800) 521-0309.

Powersports Dealer New Units in Stock

January 2014 1,713 Lightspeed Dealers, Distribution of Units by Type and Model Year Prior to 2013 Model Year

2013 Model Year

2014 Model Year

13%

36% 51% ATV 6% 21% 73% Utility Vehicle 17% 34% 49% Off-Road Motorcycle 21% 48% 31% On-Road Motorcycle 10% 16% 74% Snowmobile 25% 55% 21%

www.adplightspeed.com

Scooter

22 February 2014 | Motorcycle & Powersports News

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RCU For

You

What Can Dealers Learn From The Greatest Of All Time By Robin Hartfiel

Photos by Josh Rud, Shift One Photography

Tickle; working in the broadcast booth every weekend for Fox Sports; making countless personal appearances… and the list goes on. So why would somebody with so much on his plate want to dish out riding tips to a bunch of amateurs? “I do this because it’s something I enjoy and it is also a way to develop something cool within the sport. It is a way to give something back to the sport that has given me so much,” he explains. “I believe things like RCU are programs this sport needs – our fans and competitors deserve options and opportunities. I genuinely want to see our sport grow and earn the respect that it and its riders deserve.” It wasn’t something as simple as slapping his name on an existing program, he and manager JH Leale spent a considerable amount of time creating the concept, designing the curriculum and making sure that RCU was legit long before it was ever

hat began as a once-in-a-lifetime learning experience for a handful of lucky motocross fans has taken flight to become the fully fledged Ricky Carmichael University. Riders of all ages and skill levels now have an opportunity to learn from the “GOAT” (Greatest Of All Time) as the legendary motocross/supercross racer Ricky Carmichael has become known. Obviously graduates stand to gain the most from RCU, however dealers, sponsors and others in the industry can gain tangible benefits. RC took time out of his incredibly hectic schedule to explain more about RCU. In addition to being the “dean” of RCU, he is still actively involved in “Ricky Carmichael’s Road To Supercross” as the Arenacross series has become known; preparing for the 2-day Ricky Carmichael Amateur Supercross held at Daytona International Speedway during Bike Week; heading the RCH Soaring Eagle Supercross team of Josh Hill and Broc

24 February 2014 | Motorcycle & Powersports News

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announced back in 2010. “When we first discussed the idea, we looked at other sports and saw how they helped develop their future talent. We set out to do the same thing in moto.” They also looked at the backend opportunities for the industry. “Not only do we work hard to make it great experience for the students, we try to make it worth everyone’s while in many different ways. It brings positive attention to our sponsors and allows the participants to get closer to those brands as well.” Of course the initial focus is on the students. “We believe a rider can get so much out of RCU. First being a great experience and being exposed to the depth of knowledge we have from the instruction staff to help these riders reach their true potential.” The riders are divided by age and ability level so everyone has a chance to learn and improve from their personal level. From up-and-comers on 85s to Vet riders, RCU caters to each group. “By keeping the class sizes small it allows us to spend more one-on-one time with each rider. We believe that we have put together a trend-setting program with RCU,” claims the GOAT. “We can give some insight to not only

MotorcyclePowersportsNews.com 25

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the riders but their parents and guardians, mechanics and others — it is truly a great experience all around. For the parents and mechanics we also have classroom time for them as well with seminars from companies such as Cometic, Dunlop, Hookit and others.” Dealership personnel take note: “We also have a factory mechanic on hand to help answer any set up questions they may have. We have learned a lot and tried to implement ideas from those big camps athletes from other popular sports (stick and ball) in America attend.” So how does the average dealer get involved? “Whether it’s a dealer or potential sponsor, there are many different options with how they can be involved — from a scholarship side for individual riders to the advertising/partnership programs that the RCU provides,” says RC. “It is really up to them what they want do. We try to accommodate dealers and sponsors alike. We give them the option as to what way they feel is best to promote their brand. “ Carmichael cites Fox Racing and Rocky Mountain ATV as two prime examples. “Fox has been involved from the beginning and they work with their reps and dealers to provide ‘scholarships’ to deserving local riders by building it into some of their sales programs. It’s a great way to reward their dealers and reps.” Rocky Mountain ATV/MC came on last year and

did an online essay contest on why they should pick you to attend. We love new and fun ideas like that and are always open to hearing ideas on how people can get involved with the program.” Time constraints being what they are for Carmichael, RCU is the best way to spend time with the champ these days. “I don’t do private lessons any more,” he says regretfully. “With all the programs we have going on and the RCH Soaring Eagle race team responsibilities, it keeps my time totally locked up. I still do the Suzuki Camp Carmichael, which is exclusive to Suzuki riders. Suzuki rewards 24 riders with a private RCU at my track in November and the racers earn points throughout the year via Suzuki’s contingency program. It’s a really cool program that they do.” Look for an updated schedule of RCU classes including the addition of Red Bud and for the first time ever, expanding into Europe with 2-day stops in Sweden and Belgium. RCU is supported by Ricky’s personal sponsors including Monster Energy, Fox Racing, Oakley, Cometic Gaskets and Suzuki as well as RCUspecific supporters such as Mechanix Wear, Hookit and Trek. t For more details, click on www.rickycarmichael.com or www.rickycarmichaeluniversity.com. 26 February 2014 | Motorcycle & Powersports News

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The Ricky Carmichael University Faculty Who is on the RCU faculty? “The staff of the RCU programs are myself, Jeff Emig and Jeff Stanton,” notes the head instructor, Ricky Carmichael. “These two guys have been a permanent fixture on the instructors side since day one.” Care to guess how many national, world and Motocross des Nations championships this team has between them? We can't count that high! There have also been some supporting instructors. “It really just depends on their schedules and what country or region we are in, but normally we try to have the best “guest” instructors we can get. In the past we have had Johnny O'Mara, Jeff Ward, Damon Bradshaw, Ivan Tedesco and Grant Langston among others.” This year RCU will be working with Jamie Dobb in Europe and some other surprise instructors to be announced later, including 10x World GP champ Stefan Everts! The knowledgeable and

experienced panel of instructors are all more than qualified to teach students everything from proper body positioning to utilizing organized drills focusing on flat turns, riding rhythm sections and improving braking techniques. Long-time fans may remember Carmichael’s own training started with his mother. She definitely knows what she is doing since she helped create the legend of the GOAT. “My mom helped out with the first couple we did, but she isn't really involved in the RCUs anymore. She is busy helping with the riders we have at my track,” he says. “My dad and her run things at my track in Florida and keep things going up there for the few riders that use it.” How about that JH Leale guy? Where does he fit into the RCU picture? “JH is a huge part of the RCU,” claims Carmichael. “Honestly it’s his program and he spends a majority of the time on it and the growth of it and always trying to make it better. I do share my ideas and things that I think we should do, but he is the boss.” t

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PEAK

Dealership PERFORMANCE

By Mark Rodgers

What Makes Them Click? How to Write a Persuasive Email That Gets Results

mail — love it or hate it — isn’t going anywhere. The total number of worldwide email accounts is expected to increase from 3.9 billion in 2013 to 4.9 billion by the end of 2017, according to The Radicati Group, a Palo Alto, Calif.based technology market research firm. Even teenage digital natives, who left email behind long ago and equate the platform with carrier pigeons, still use it for homework and file sharing. But email, by its very nature, is fraught with communication challenges. Messages are one-dimensional, which means customers often aren’t able to interpret their “tone.” When you’re speaking with someone, the other person may (either knowingly or not) use voice inflection to communicate an emphatic statement, a question or sarcasm. Those cues are eliminated within the confines of an email. Additionally, because people’s email accounts are inundated with spam on a daily basis, the intended recipients of your message may not receive it because it’s caught in a spam filter. Even if the message does get through, it may not be read, because nothing about it captures the recipient’s attention. This is why you want to tell customers to make sure you’re on their “safe sender” list. It doesn’t hurt to come up with provocative subject lines, either (Well, not too provocative). At the same time, emails can significantly enhance communication with customers by allowing you to inform, engage and connect with them. You also can customize emails by targeting specific buyer groups. Every dealership should already have email policies in place regarding employees who send messages to their own customers or use store-owned computers for personal email. But every dealership also should develop email

objectives. What do you want to achieve with each email you send? Here are seven types of email a motorcycle dealership should have in its arsenal: Sales email: To promote prices 1. and get buyers through your doors. Example: The annual “Shift Into Spring” sale. Marketing email: To let 2. customers know about special happenings at your dealership. Example: Upcoming charity rides, chili cook-offs and unusual promotions. Research email: To share new or 3. existing information that riders can use. Example: News about researchers in favor of universal helmet laws. Informative email: To share 4. important, non-sales information. Example: BMW recalls 50,000 motorcycles for potential fuel pump leak. Educational email: To teach 5. your customers useful information. Example: How to prep your motorcycle for spring riding conditions. Email update: To provide 6. dealership or industry news. Example: Stop by and check out the new 2015 models. Email inquiry: To serve as a 7. reminder or a call to action. Example: When was the last time you changed your motorcycle’s engine oil? Understanding your objectives will help you craft the five key components of a compelling, persuasive email: attentionseeking subject line, effective message, call-to-action, appropriate sign-off and useful signature. Subject Line Is Your Handshake Treat the subject line of your email the same way you would an initial handshake; it

28 February 2014 | Motorcycle & Powersports News

may be your only chance to make a first impression. And just as a handshake can linger a tad too long, keep the subject line brief, indicating why your message is worth the reader’s time. There are multiple ways to do this. In his book To Sell Is Human: The Surprising Truth About Moving Others, New York Times-bestselling author, Daniel Pink, reports on research from 2011 that determined people open emails based on three factors: utility (opened because the recipient has something to gain or lose), curiosity (opened because the recipient is, well, curious) and specificity (opened because the recipient knows exactly what he or she is getting once the message is opened). To that end, craft your subject headers to fall into one of the following five categories: Descriptive: 10% Off Repair Services Through the End of May Fast Fact: Tire Tread Patterns for Motorcycles and Cars Differ Provocative: Our Shoei Helmets Can Withstand Bullets Rhetorical: Are You Tired of Looking at a Beat-Up Wind Deflector? Nearly Naughty: Let Us Show You How Much We Love You Also keep in mind to whom you’re sending the email. If it’s an email blast to your entire list of customers, many of whom might never have met you, use a straightforward subject line that gets right to the point: ABC Motorcycles Customer Appreciation Event This Thursday If you’re sending out details about a customer appreciation event to your own list of customers who’ve worked with you one-on-one in the past, you can afford to be a little more personable:

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I’m Inviting All of My Favorite Customers. This way, you’re communicating the bottom line of your message before your recipients even open the message. Effective Message This requires you to be engaging, clear, concise and persuasive. We all know how easy it is to just hit “delete” without reading more than the first line or two of an email. Why is that? Because we intuitively believe that if nothing interests us in those lines, we don’t need to waste our time reading the rest of the message. Let’s break down an effective sample email that could be sent to new customers: Hi, Steve: Hope all is well and that you are enjoying the new motorcycle you bought from ABC Motorcycles. We certainly hope so! Have you been able to put many miles on it yet? “Hope all is well” is a polite opening and invites the recipient to comment (“We’ve been swamped!” “We just got back from vacation!”). Then, by mentioning his new ride, you’ve begun to steer the conversation in the right direction by reinforcing your commitment to a positive

customer experience. Asking about miles further invites an exchange (which is what you want). Note the use of “yet” at the end of that statement. I like it, because it makes the question more casual, rather than threatening and interrogational. The email continues: As you know, it’s a special bike, and you’re now a member of our dealership family. So we wanted you to know the family is having a get-together. ABC Motorcycles is hosting a customerappreciation event this Thursday beginning at 5 pm inside the dealership and out in the parking lot. This reaffirms the buyer’s purchase decision and emphasizes that your dealership treats customers like family. The message than segues into the customerappreciation activities. The use of “your” makes everything a little more personal. If your mail program allows it, highlight the sentence that contains the date and time of the event. Back to the email: We’ll have special deals on accessories, apparel and service packages, plus food, drinks and sweets for the entire family. We want to hear about your experiences with your new motorcycle and introduce you to fellow

riders in the area. This portion of your message is intended to give your new customer an idea of what to expect. It indicates you’ll be a welcoming host and can dramatically increase event participation. The emails ends: Please consider joining us — you might even win one of the cool prizes we’re giving away. Will I see you there? Let me know. This is your “call to action” line. Many blog and social media posts use this technique, and so should your emails. What do you want your recipient to do as a result of reading your message? Email you and confirm that he will attend! That’s why you ask the question directly. When people go “on the record” and make a commitment (especially in writing), they are more likely to keep that commitment. Also note the use of a cliffhanger: “…you might even win one of the cool prizes we’re giving away.” What kind of prizes? How cool are they? Stop by, and you’ll find out. Because you come across as friendly, enthusiastic and down-to-earth, customers will have a hard time saying “no” to your call to action.

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Sign Off Many people don’t spend much time thinking about their email sign-off, and that’s a mistake. This is one of the last impressions you’ll leave with your message, and you want it to be as effective as possible. “Talk soon” is friendly and familiar, and suggests the relationship between your customer and your dealership is just beginning. Other commonly used sign-offs: “Thank you,” “Sincerely,” “Warmest regards,” “Best,” Don’t be afraid to get a little more specific: “Ride safe,” “See you on the road,” “See you at the dealership.”

web page that lists five reasons to buy from “New England’s oldest dealer.” (Reasons include being family-owned, winner of several awards and a firm belief in no surprise fees.) So put your contact info in the signature: first and last name; store phone number, URL, email address, mailing address and your cell phone number. If your dealership

Signature Just because you’ve signed off doesn’t mean your efforts to persuade customers to attend your event are done. Even your email signature can be persuasive. Not only does it reaffirm who you are and your role at the dealership, it reinforces your dealership’s brand and gives customers the ability to quickly and easily contact you. John W. Lyon, co-owner of Wilkins Harley-Davidson in Barre, Vt., includes this line: “Why Buy From Us? CLICK HERE.” Clicking there takes email recipients to a

30 February 2014 | Motorcycle & Powersports News

has a cool slogan or tagline, has won awards or been voted “Best” something, add those details, too. That said, be careful with images (the smaller the better) and sounds (we all know what a motorcycle sounds like). Many smartphones or email programs will convert your phone number and email address to hypertext, which allows recipients to click and call you quickly and hassle-free. Humans follow the path of least resistance: If you make it as easy as possible for people to contact you, the chances they will, go up considerably. Following these steps to an effective, persuasive email will significantly improve email open and response rates. t

An award-winning author, top-rated trainer and founder of Peak Dealership Performance, Mark Rodgers holds a master’s degree in adult education and the National Speakers Association Certified Speaking Professional designation — only 500 people in the world have this coveted recognition. For more information, contact Mark at: Mark@peakdealershipperformance.com to improve your performance.

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PWC UPDATE Yamaha Unveils IndustryFirst PWC Buyback, Lease Programs

amaha continues to explore new avenues to promote personal watercraft ownership. Last year, the brand introduced the industry’s first certified pre-owned (CPO) program, which allowed consumers the opportunity to buy a pre-owned PWC with the peace-ofmind that comes with a full factory warranty. In late December 2013, the company was at it again, unveiling two more industry firsts, a guaranteed buyback program and the opportunity to lease, rather than buy a new WaveRunner. “We know the numbers are through the roof as far as people that go boating and use a personal watercraft,” notes Bryan Seti, general manager, Yamaha WaterCraft Group. “Our goal is to drive as many people as possible into the dealership to buy new.” The guaranteed buyback program is aimed at buyers of new-model WaveRunners that finance on a 60-month term. The program gives these buyers the opportunity to return the craft after 36 months and “walk away,” or instead trade up to a new model. Yamaha will offer buyers a 30-day window at the end of the 36 months in which to make the decision. The value of the craft will be based on used PWC pricing from the National Automotive Dealers Association (NADA). Yamaha will pay remaining loan balances up to $2,500. Dealers pay no fee to participate in the program, which is financed through either GE or Capital One. According to Seti, the program is aimed at first-time customers unsure about getting into the sport, as well as the high-end consumer who wants the “latest and greatest” every three years. As of Jan. 15, 2014, 175 dealers have signed up to participate in the program. Though these programs have long

been staples in the automotive industry, Yamaha is the first to bring the lease concept to the personal watercraft market. The company is rolling out the WaveRunner lease program in six states to start — Arizona, California, Florida, Georgia, Nevada and Texas — and plans to announce additional states soon. “We don’t think there’s a ‘one-size-fitall’ approach to the purchase process for every consumer,” explains Seti. “So we

Both programs, as well as Yamaha’s existing Rental Operator program, will offer dealers multiple opportunities to acquire good used units at a very competitive price. In turn, this will give dealers the opportunity to place those units on the CPO program and earn additional, incremental revenue. “Our goal is to have a program for every customer who walks into one of our dealerships,” says Seti. “For new

want our dealers to have a toolbox at their disposal to find the right option for every customer who walks in their door. Some want new, others want used or maybe short-term ownership. “We are aiming to remove the barriers of entry into the marketplace with our products. Leasing is a great option for many potential customers since it removes the commitment factor of ownership. We also wanted to offer an option for the customer who wants the latest and greatest product every three years.”

PWC owners, leasing is one of many great options for them. Existing customers can absolutely use it as a way to always have a newer model. “This gets at the essence of our strategy in creating these sales programs. By expanding the breadth of what our dealers can offer, we believe we will not only attract new sales, but also ensure that our customers have a great ownership experience with our products... “...and build meaningful, long-term relationships with our dealers.” t

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WebSAVVY

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he power of YouTube as a primary social channel should not be underestimated. Videos serve to boost your website’s organic search ranking, build your dealership brand and sell more bikes — which is enough reason to dive in. Getting Started The best aspect of YouTube is you don’t need to invest thousands of dollars on sophisticated video equipment and professional editors to jumpstart your efforts. Got a smartphone? You’re ready to shoot. Webcam on your computer, or even better, a GoPro camera? Now, you’ve got no excuse! Here’s is a step-by-step guide to setting up a YouTube account: Sign-in to YouTube with your Gmail account from Google — if you don’t have one, YouTube will walk you through the process (remember Google owns YouTube that’s why publishing content here helps your organic search rankings). Go To All My Channels. Here, you’ve got the option to create a YouTube channel for a Google+ page that you manage. Select this option, as you’ll want to associate your YouTube account with your dealership’s Google+ page. If you don’t have a Google+ page established, a new one will be created when you click, “Create a new channel.” Fill out the details to create your new channel, and you’re ready to roll film … well, almost. Planning Your Content Strategy While going “viral” may sound appealing, the chances that your dealership’s new video will compete with adorable kittens and viral sensations like the Harlem Shake are slim-to-none. Instead, your goal should be to create videos that connect with your niche customer base. As a rule of thumb, if you can blog about it, you can create a

By Heather Blessington

Do You YouTube? video about it. Your video content could include new unit walk-arounds, service department how-tos, local racer interviews or an over-the-handlebars perspective of your newest unit in action. Here are just a few examples to get your creative juices flowing: Woods Cycle Country Dealership Tour: http://youtu.be/PHSSpu819Gg In this video, Woods Cycle Country based out of New Braunfels, Texas, takes advantage of video to give its prospective customers an aerial tour of its dealership. Road, Track and Trail Virtual Test Ride Series: http://youtu.be/NQeGYxc-PDo Just one of a series, Road, Track and Trail’s Virtual Test Ride is an opinion-based video that compares two similar motorcycles head-to-head. Harlem Shake Motorcycle Dealership Original Calgary: http://youtu.be/NPj7UIXrjLg Blackfoot Motorsports in Calgary, Alberta, took advantage of one of 2013’s most viral videos by doing its own spoof on the Harlem Shake. Optimizing Your Videos for SEO Just like on Google, keywords drive the discovery of your YouTube videos. You can use YouTube’s Keyword Tool (https://www.youtube.com/keyword_tool) to generate a list of keywords to work into your videos. Here are the key places to use your keywords in each video: Title: Just like your blog posts, make sure the title of your video includes your keywords. Description: At the very least, you should write a one-sentence description, but you don’t have to stop there. You can write a blog-post length description, working in your keyword phrase(s) multiple times. This section is an ideal place to plug in a secondary call to action which clicks through to a landing page on your website (insider tip: there is

32 February 2014 | Motorcycle & Powersports News

no character limit on this field, so include all the detail you would like). Tags: Make sure you use your keywords and related terms in the tags section. Script: YouTube takes the audio from your video and creates an automatic transcript, so working your keywords into your script will help your video’s SEO. Annotations: The ultimate goal of all of your videos should be to drive traffic to your website. Utilize annotations to place words on the screen with a call to action, such as, “For more information on all of our 2014 new unit inventory, visit us at xyzmotorcycles.com.” Be Consistent One video doesn’t cut it. Forget about coming up with the world’s most creative viral video. Instead, focus on creating a steady, consistent stream of videos that address your target customer’s biggest needs. Sit down with your entire team and create an executable schedule of video content to ensure your YouTube channel stays current. It’s also important to remember that YouTube is just one channel in your overall social media marketing strategy. When you’re coming up with video ideas, be sure to think about how your video fits into your dealership’s overall social media and digital marketing strategy. If you remember anything from this article, remember this: the key to digital marketing success is to publish relevant content on a regular basis to establish authority. t

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

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Tire R

Whether it’s woody trails or rocky tundra, your riders need tires that will stand up to the toughest terrain. This all-star lineup of ATV and UTV tires is sure to withstand even the harshest riding conditions. K592 Bearclaw Evo Kenda Tires Placing a priority on reducing weight without sacrificing durability, the newest Bearclaw has been redesigned in different aspects of performance. Featuring an all-new tread pattern designed to perform exceptionally across all terrains, the K592 Bearclaw Evo has large center knobs for improved straight line and braking traction, uniquely shaped transition knobs for improved cornering traction and handling and recessed-dimpled knobs for improved wet traction. The six-ply rated casing allows for puncture resistance while keeping weight to a minimum. The K592 Bearclaw Evo is available in all popular four-by-four ATV/UTV sizes with 28-, 29- and 30-inch sizes coming soon. ------------

For More Info: www.kendatire.com

Sedona Tire & Wheel Mud Rebel RT Tire Sedona Tire & Wheel The six-ply, heavyduty radial construction allows the Mud Rebel RT Tire to offer stability and control. The high-grade rubber compound brings a high quality of traction and excellent tread life wear. With a 1-1/8 inch deep, aggressive, computer designed tread pattern, the tire performs on normal trail rides and in extreme conditions, providing comfort from the tire’s traction capabilities. The sidewall structure is designed for today’s larger CC side by side and ATVs. The retail price ranges from $119.95-$169.95. ------------

For More Info: www.sedonatires.com

Magnum Tires Magnum Distributing Magnum Distributing offers a full line of ATV/UTV tires that fit an array of needs in a variety of prices, guaranteed to match your riders’ budget and vehicle. With a full line of options, Magnum offers tires with different tracking solutions for the track, trail or even the mud pits. With all of the different tread and knob patterns, the Magnum line will have tires for multiple styles of vehicles as well as tires to service a plethora of riding conditions. Sizes are offered from mini quad tires to 27 inches. ------------

For More Info: www.magnumdistributing.com

34 February 2014 | Motorcycle & Powersports News

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Roundup STI Outback STI Tire & Wheel The STI Outback is an “all conditions” tire that’s versatility was achieved by creating a model that provides comfort and control while still delivering grip and cleanout capabilities. With a six-ply bias carcass and robust rim guard, the Outback provides a high level of reliability while remaining surprisingly light. Most of these accomplishments above are due to the tire’s unique tread pattern. The tread pattern’s “V” design provides an OEMlike ride on hard surfaces, while the deep, dimpled lugs aggressively dig into loose, soft terrain; the wraparound shoulder lugs supply controlled side bite; and the unique, stepped lug profile sheds mud. The Outback comes in two models: the AT, which features 3/4-inch deep lugs, and the XT model, which uses 1 1/8-inch deep lugs. Initial sizing is ideal for a wide range of current ATV and UTVs with more sizes to come. Currently, the AT is available in 25x8-12 and 25x10-12. The XT is available in 26x9-12 and 26x11-12. ------------

For More Info: www.stitireandwheel.com

AMS Radial Pro A/T Tires Parts Unlimited The built-in rim guard makes the AMS Radial Pro A/T tire ideal for use on the roughest terrain, while still maintaining DOT approval to remain street legal. The radial casing gives the tires a smooth, consistent ride. The tires have an eight-ply rating proving that they are highly puncture resistant. The AMS Radial Pro A/T tires are available in 25- and 26-inch sizes for both front and rear applications. The 12-inch and 14-inch rim size makes these tires a high-quality fit for all UTVs. The manufacturer’s suggested retail price is $117.95. ------------

Power Grip V2 Duro Tire Designed with an offroad and trail rider mindset, the Power Grip V2 is a lighter tire that is more responsive with increased puncture protection. With a tough six-ply rating, Rock Deflectors in spaces between tread lugs, a rim guard and an extended radial belt to cover and protect the shoulder area from punctures, this stands as the most durable tire Duro has manufactured. The tire has a slightly rounded profile for easier steering and reduced weight for better transfer of horsepower as compared to the original Power Grip. The first size combination is 27x9R14 and 27x11R14 with more sizes coming in 2014. The manufacturer’s suggested retail price for the 27x9R14 is $150, and the manufacturer’s suggested retail price for the 27x11R14 is $180.

For More Info: www.parts-unlimited.com

Severe Duty Alloy Wheel Series ITP The new Severe Duty Alloy Wheel Series includes the first lightweight aluminum alloy dual-bead lock wheel. The 14-inch wheel incorporates bead lock design on both the inner and outer wheel lips, providing “total tire security.” The tires are backed by an industry first two-year limited warranty against bending and breaking. The 12-inch Severe Duty Alloy features a secure bead lock on the outer lip and ITP’s “Rock Armor” reinforced inner wheel lip. The advanced manufacturing process for the series yields an incredibly lightweight yet ultra strong wheel. The SD series wheels will soon be available in 14x7 Dual-Bead Lock and 12x7 Single-Bead Lock in bolt patterns to fit all of today’s popular ATVs and SxS’s, where de-beading is vital.

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

For More Info: www.durotire.com

For More Info: www.itptires.com MotorcyclePowersportsNews.com 35

ATV/UTV 36 utv products_Layout 1 2/12/14 12:52 PM Page 36

Accessories

Slasher Dual Exhaust and Fuel Programmer

QUADBOSS UTV 4-SEAT COVER

MTA Distributing The Slasher Dual Exhaust and Fuel Programmer for the new Polaris RZR XP1000 is 6 lbs. lighter than OEM and produces 6 HP more than stock. The Slasher Dual Exhaust and Fuel Programmer is made in the U.S., constructed out of stainless steel, has an adjustable mount for easy installation and a Bristol Core high-end pillow packing for long life. Slasher’s exhaust and fuel programmer are also easy to repack, has turn down end cap, removable Spark Arrestor included and optional Quiet Insert available (96db). Dual Exhaust System MSRP $879.99 and Fuel Programmer MSRP $318.99.

QUADBOSS These covers provide reliable all-weather protection for your utility vehicle. Constructed of quick-drying, heavy-duty, coated polyester it provides maximum water repellency and UVresistance. Vents on both sides help prevent them from blowing off in high winds while an elastic cord sewn into the bottom hem ensures a snug fit. Convenient nylon storage bag is included and driver side zipper access. Designed for the Polaris RZR-4, the Quadboss’ dimensions fit UTVs up to: 131” x 75” x 59”. The retail price is $89.99. ------------

For More Info: www.quadboss.com

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

For More Info: www.mtadistributing.com

OMF Performance 15” Billet Center Wheels OMF Performance Products, Inc. OMF Performance’s new 15” Billet Center wheels are designed specifically for UTVs. An American-made spun aluminum rim shell insures a solid foundation for the wheel. OMF then goes to work creating its own bolt in billet center. Aside from the obvious strength benefits of a billet center, it also allows you to change the offset, bolt pattern, style or color of the center without purchasing a whole new wheel. OMF also adds a heavy-duty reinforcing ring on the back side of the wheel in addition to a beadlock on the front side of the wheel. Wheel weight varies with options, but a race ready 15x6 wheel weighs in at 16 lbs. complete with the beadlock and inner reinforcing ring. Almost any combination of colors, styles and modifications is available. Smaller 12” and 14” sizes are also available. ------------

For More Info: www.omfperformance.com

All Balls UTV Steering Rack Tie Rod Assemblies All Balls Rather than spend up to $700 for a complete steering rack assembly, replace bent and worn tie rod assemblies with All Balls heavy-duty tie rod assemblies at a fraction of the cost. The inner rod assemblies have oversize shaft diameters for improved strength. Each kit includes heavy-duty inner and outer rod ends with replacement boot, clamps and any required lock washers. Outer tie rod ends and boot kits also available individually. Priced from $69.90 - $90.28 per side depending on application. ------------

For More Info: www.goallballs.com

36 February 2014 | Motorcycle & Powersports News

37 kymco 2/12/14 10:47 AM Page 37

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Off Road Gear Essentials GOGAD/GOGJR Fulmer Helmets Featuring both anti-fog and anti-scratch technology, the GOGAD and GOGJR adult and youth motocross goggles allow older and younger riders to venture down trails with the added bonus of actually seeing where they are going. The goggles have UVprotective lenses, a non-slip silicon-backed adjustable strap and a precision-tooled frame for enhanced peripheral vision. These goggles also contain Fulmerâ&#x20AC;&#x2122;s optically correct lens with an additional spare lens in either smoke or clear. The goggles come in red, yellow, pink, green, blue and black with a microfiber goggle bag included in the purchase. The manufacturerâ&#x20AC;&#x2122;s suggested retail price is $19.95. ------------

For More Info: www.fulmerhelmets.com

38 February 2014 | Motorcycle & Powersports News

FLY Racing Evolution Clean Racewear FLY Racing The Evolution Clean Racewear demonstrates a unique, revolutionary design. This design was made possible from exceeding the boundaries of typical racewear technology, fit and finish to produce something entirely different. The Evolution Clean Racewear features exclusive technology such as a 2D Buckle System, a Zipper Lock System and the introduction of Magnetic technology. The pant, jersey and glove combination retails for $232.85. ------------

For More Info: www.flyracing.com

39 kymco 2/12/14 10:49 AM Page 39

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Off Road Gear Essentials

AXO America A2Â Boots

Officially Licensed Hoodies Factory Effex Factory Effex offers a wide range of Honda, Yamaha and Suzuki screened and embroidered fleece pullovers, zip-ups and hoodies. They retail between $54.95 and $79.95. ------------

For More Info: www.factoryeffex.com

40 February 2014 | Motorcycle & Powersports News

Axo Sport The newest addition to the AXO footwear family, the A2 boot encompasses technology and comfort in motocross boots while also offering a great fit. The new A2 features a reinforced nylon anti-torsion ankle brace with a hinge system, AXO engineered alminum buckles for an enhanced lock/unlock operation and antiabrasion upper materials. The A2 also has a breathable, anti-bacterial and anti-sweat 3D-shaped mesh lining within the boot, AXOâ&#x20AC;&#x2122;s traditional easy-to-replace sole and is designed and produced with plastic molded materials. The A2 boot comes in black or white in sizes 5-13. Suggested retail price is $475. ------------

For More Info: www.axo.com

41 walker 2/12/14 10:49 AM Page 41

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DESTINATION

Dealership Story and images by Gary Ilminen

Vetesniks Power Sports Steady Growth of a Powersports Powerhouse of the Upper Midwest

“V

ariety is the spice of life,” as they say. It is also a key element of not only surviving but flourishing in tough markets. Vetesnik Power Sports in Richland Center, Wis., and Vetesnik Mad City Power Sports in Madison, Wis. are

the automobile sales operation was phased out. In the 1990s, the product line continued to broaden with the addition of Polaris, Yamaha and Bombardier Recreational Products (BRP). By 1999, the

for Honda cycles, ATVs, UTVs and power equipment, Suzuki, BRP with Ski-doo, Spyder and later Commander. The facility and location, however, were not ideal and planning began for a new facility in the same general area.

dynamic proof of that. Starting with a 1,000-square-foot shop offering Buick and Pontiac automobiles and Honda motorcycles in 1974, the family-owned enterprise has adapted to changing market and economic conditions. “That original shop we purchased from Bristol’s was one of the first Honda stores in the state. In those days, we sold about 100 new units a year,” co-owner George Vetesnik, Jr. said. By 1980, the business expanded to about 9,000 square feet in facilities across the street from the original location. In the 1980s, John Deere lawn and garden equipment was added to the dealership, the powersports product lines were expanded, and eventually

enterprise made a huge commitment with construction of an all-new sales, service and warehouse complex totaling about 54,000 square feet a couple of miles east of Richland Center on U.S. Highway 14. The facility houses a massive selection of motorcycles, snowmobiles, ATVs, UTVs, boats, parts, accessories, supplies, gear and apparel. Growth continued in the 2000s with the acquisition of nearby Jones Powersports in 2007, which included Suzuki, Kawasaki and Tracker boats. In 2005, the business expanded to Madison, Wis., 65 miles east, with the acquisition of the assets of powersports dealer, Young America, to access the larger, urban market around the state capitol city. The acquisition brought with it the territory

“There were a lot of regulatory issues with land in Madison, so we acquired a parcel that is actually about a quarter mile outside the city limits. The location for the facilities on that land was affected by the fact that the building site was close to a wetland. Even the location of the sign we wanted to put up there had to meet a lot of requirements like setback distances. We had to get approvals from about 15 different agencies to get it done. Others had looked at the land and the things that would have to be done, and gave up. We kept at it until we got it done, and when it was done we had a file of permits and papers about this thick,” Vetesnik explained holding his hands about six inches apart. Persistence paid off; construction on the new facility, which is actually located in

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Deforest, began in 2008 and opened in Jan. 2009 as Mad City Power Sports. It provided an additional 20,000 square feet of sales and service floor space, together with additional warehouse space. In addition to the robust retail location presence provided by the two locations, Vetesnik has extended its reach into the

pretty good in 2007; it was 2008 when things got tougher and we had to reduce our overhead. Keeping costs in line was a matter of keeping up with how fast things were changing.” Today, as the economy continues to recover, Vetesnik’s operations employ an average of 30 to 32 staff members at both facilities combined.

Vetesniks Power Sports 27475 US Highway 14 East Richland Center, WI 53581 608-647-8808 www.vetesnik.com OEM: Honda, Yamaha, Suzuki, Kawasaki, Can-Am, Arctic Cat, Polaris, Sea-doo, Ski-doo and Tracker Boats Number of employees: 32 URL: www.vetesnik.com market nationwide through its Internet operations. “We’ve had inquiries and sales from all around the Midwest and even from as far away as Alaska through our website; it’s important,” explained vehicle sales representative, Ron Olson. Taken together, the physical sales presence in the region’s market and Internet activities have taken the business a long way from the humble beginnings of 100 units a year. “We sell about 2,000 units a year now, including wholesale, and things have been gradually improving,” said sales and marine manager, Chris Gerber. Of course, the recession had an impact on Vetesnik’s operations, despite the longterm growth of the enterprise, as George Vetesnik, Jr. explained. “Things were still

Visibility and community connections are supported by dealer sponsored events at the store locations, in the community and around the region. The Vetesnik Power Boat Show in February, Spring Consignment Auction in March, the 2014 Honda Wing Ding Gold Wing Rally in July, Vetesnik’s Rendezvous, local bike nights, sponsoring local ATV, snowmobile and motorcycle racers are just a few examples. Vetesnik Power Sports is a family enterprise that has grown and progressed even in the face of tough markets, perhaps because they strive to follow their business motto: “Where customers are treated like family.” t

MotorcyclePowersportsNews.com 43

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BEST

Operators CLUB

By Steve Jones

December 2013 Year End Dealer Data Report Key performance indicators for the overall store.

ll-in-all, 2013 was a decent year. You can see from Chart 1 that total store sales were up, as was Net Operating Profit (NOP) – albeit slightly. Overall store margins slipped a small amount for the group and the Top 5, but increased slightly for the National Norm (NN) dealers. The Top 5 continue to do a better job of getting people in the door and capturing their information for less cost than the norm. There is a reluctance to advertise, but it is a necessity. The key is to put the money in the right places with sufficient frequency. It takes more exposure now to get a response than it used to because of the increase in media bombardment. Chart 2 – Unit sales are up across the board with the exception of the drop in used sales by the group. This is doubly bad because this is where the gross profit is. You can see the result in their NOP. Gross profit pays the bills, folks. Check out the relationship of number of turns to flooring and advertising expenses for the Top 5. Volume decreases the expenses per vehicle sold. They are not only better at getting people in the door, they are better at closing them. Chart 3 – F&I went up nicely for 2013. This has been helped by the improved financing situation with banks and credit unions. That said, the members of the group could use some help. The group norm is weak and even the Top 5 in the group are being pounded in per vehicle sold by the overall NN dealers. The results we see in dealers who attend an F&I training session make all these numbers look pretty anemic. Chart 4 – PG&A sales were up with decent gross profit per vehicle sold and reasonable parts margins. The accessories margins for the group and the NN dealers could use some work. Very soon we will be able to break this out by clothing and

Total Store - YE 2013 Total Store Sales

CHART 1

GROUP NORM

TOP 5 DEALERS

7.5 mil.

11.2 mil.

9.2 mil.

13.6%

8.7%

Percentage of Change in Total Store Sales from Prior Year 5.1%

NATIONAL NORM

Total Store Gross Profit Margin

23.2%

25.7%

Gross Margin for Prior Year

24.1%

26.3%

25.4%

Total Store Net Operating Profit (EBITD)

3.0%

4.7%

4.4%

Door Swings: Percentage of change from Prior Year

-4.1%

12.4%

-0.3%

Cost per Door Swing

$29.72

$43.45

$44.19

Logged Working Contacts: Change from Previous Year

-1.5%

30.0%

2.1%

Contribution to Total Store Gross Profit: New Sales

28.1%

18.7%

29.3%t

Contribution to Total Store Gross Profit: Used Sales

12.7%

34.9%

13.1%

Contribution to Total Store Gross Profit: F&I

11.7%

14.6%

14.0%

Contribution to Total Store Gross Profit: PG&A

28.8%

35.2%

26.1%

Contribution to Total Store Gross Profit: Service

18.4%

22.6%

17.2%

Selling Expense as a Percentage of Total Sales

4.8%

3.2%

2.4%

Personnel Expense as a Percentage of Total Sales

8.2%

5.8%

10.0%

Administration Expense as a Percentage of Total Sales

3.4%

2.6%

5.2%

Facility Expense as a Percentage of Total Sales

3.8%

2.7%

3.6%

Average Total Store Staff Headcount, Year to Date

14.94

21.07

17.5

112,473

132,413

130,611

Gross Profit per Employee, Year to Date

CHART 2

Unit Sales GROUP NORM

TOP 5 DEALERS

NATIONAL NORM

New Units Sold Percentage of change from Previous Year

13.7%

36.8%

11.2%

Preowned Units Sold Percentage of change from Previous Year

-9.0%

11.2%

5.2%

Percentage of Change in Department NOP from Prior Year

-1.1%

.7%

.4%

Total New Units Gross Margin

12.0%

13.6%

14.6%

Total Preowned Units Gross Margin

19.8%

23.4%

20.0%

Change in Selling Margin from Previous Year

-0.6%

2.2%

0.7%

0.47

0.8

0.56

Preowned Inventory Turn

7.2

12.1

5.3

New Inventory Turn

2.5

2.7

Sales Personnel Expenses Per Vehicle Sold

$362

$220

$267

Total Advertising and Promotion Per Vehicle Sold

$61

$28

$107

Flooring Expense Per Vehicle Sold

$118

$68

$125

Average # of Customer-Facing Staff, Year To Date

3.76

5.33

4.95

185,235

242,472

200,983

PC&A Dept Stats – Part 1

Preowned to New Ratio

Gross Profit per Sales Employee, Year To Date

44 February 2014 | Motorcycle & Powersports News

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CHART 3 accessories. Then we can make a better determination of how to improve this situation. The sticking point has been getting all the dealers to set up accurate dealer management system categories so they can accurately track these numbers. You should be doing this as well. Note that the Top 5 averaged about two more employees in this department and they sold around $20K more per person than the group or NN dealers. If you do the math, they had almost $300,000 more gross profit than the NN dealers. Think about this for a minute. Right people, right training. Chart 5 – Service was interesting. While the NN and Top 5 dealers improved in gross profit, the group went down. The Top 5 were beating the goal of two hours per repair order and parts to labor ratio, but the NN and group dealers are still lagging. This is a key element in increasing service profits and it is largely attributable to the service advisor. These folks have an important position. You need an adequate staff with proper training. You want them to have less than 200 repair orders per month so they can properly conduct a walk-around and up-sell with the customers. Tire and battery sales are health indicators. Dealers who sell more tires than units are generally stealing this business from other dealers. So what? If you have a decent service advisor, you are getting a lot of add-on sales with every tire change. If you can capture their tire business, you have a chance to capture their service business and that can lead to more unit sales. It all works together. Conclusion: The upward trend for our business is continuing – slow, but steady. This bodes well if we keep our expenses in line and provide the exceptional customer experience that ensures we keep them as customers. Your people make the difference. Hire the right staff and provide ongoing training. It pays off. t In April, GSA will be conducting a 3-day workshop called “5 Profit Centers.” The workshop covers the basics of 5 profit center accounting, personnel management, best practices and vital benchmarks for all departments. See www.gartsutton.com for further details. Steve Jones, GSA senior projects manager, outlines dealership best business practices to boost margins, increase

GROUP NORM

TOP 5 DEALERS

NATIONAL NORM

Finance Gross Profit change from Prior Year

6.1%

23.8%

14.0%

Gross Profit Per Vehicle Sold

$238

$337

$448

Finance & Insurance - YE 2013

Gross Profit Per Vehicle Floored

$674

$911

$829

Percentage of Finance Penetration

51.0%

59.1%

53.9%

Percentage of Service Contract Penetration

32.1%

43.0%

31.2%

Percentage of Prepaid Maintenance Penetration

3.6%

9.3%

13.1%

Percentage Financed with GAP

9.8%

20.7%

15.7%

Personnel Expense as a Percentage of Department Gross Profit

28.6%

18.0%

20.5%

Average # of Customer-Facing Staff, Year To Date

1.01

1.28

1.26

Gross Profit $ per Finance Employee, Year To Date

202,056

289,411

256,514

CHART 4 GROUP NORM

PG&A - YE 2013

TOP 5 DEALERS

NATIONAL NORM

PG&A Sales - % of change from Previous Year

1.3%

9.3%

4.0%

Total PG&A Gross Profit Per Vehicle Sold

$790

$1,095

$829

Parts Margin

35.9%

40.5%

34.9%

Accessories Margin

30.4%

35.2%

30.4%

Invoice Volume of Change from Previous Year

-0.7%

20.1%

0.0%

Percentage of Inventory Obsolete

15.4%

2.5%

8.1%

Parts Inventory Turn

4.6

6.5

4.44

Accessory Inventory Turn

2.26

3.21

2.67

38.5%

30.2%

34.7%

Personnel Expense as a Percentage of Department Gross Profit Average # of Customer-Facing Staff, Year To Date Gross Profit per PG&A Employee, Year To Date

4.2

6.41

4.85

121,893

141,748

125,713

CHART 5 Service Percentage of Change from Last Year’s Gross Profit

GROUP NORM

TOP 5 DEALERS

NATIONAL NORM

-0.6%

10.3%

4.1%

Labor Margin

71.5%

78.2%

69.0%

Department Productivity

73.1%

86.3%

72.0%

Tech Efficiency

98.8%

107.3%

101.7%

Department Proficiency

72.6%

85.6%

71.5%

Billed Hours per Repair Order

1.76

2.31

1.76

Labor Sales per Repair Order

$145

$184

$155

Parts Sold to Repair Order Ratio

0.96

1.1

0.95

Percentage of Change in Repair Order Volume from Prior Year

-4.5%

6.2%

-0.8%

Tires Per Vehicle Sold

1.29

2.04

1.67

Batteries Per Vehicle Sold Personnel Expense as a Percent of Department

0.9

1.26

0.14

49.4%

35.0%

37.8%

5.74

7.79

6.34

51,870

62,132

61,030

Gross Profit Average # of Service Staff, Year To Date Gross Profit $ per Service Employee, YTD

profitability and retain employees. His monthly column recaps critical

measurements used by the leading 20-group dealers. MotorcyclePowersportsNews.com 45

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Roberto Almenar 330-670-1234 ext. 233 ralmenar@ babcox.com

RTISE TO ADVE IED SIF IN CLAS ACE L P T E K R MA

Ad Index ADP Lightspeed ..........................23 Amrep Inc ....................................15 Amsoil Inc ....................................5 Air Suspension Parts by Arnott, Inc. ..................43 Carlson Company ........................38 Duro Tire/Wheel..........................40 Emgo International..................7, 26 Fulmer Helmets ............................8 HJC America ......................Cover 2 Kymco USA ............................37, 39 Lonski and Associates, LLC. ........20 MBA Insurance ............................30 Motor Trike ..................................9 MTA Distributing......................3, 33 Namura Technologies ............10, 11 National Powersport Auctions ......1 Protective Asset Protection ........21 Rizoma USA ............................6, 29 Service Manager Pro ....................8 Sudco International Corp ....Cover 4 Sullivan's Inc. ........................16, 17 Vee Rubber America....................19 Vega Helmet Corp. ..............Cover 3 Walker Products..........................41 Wizards Products/ RJ Star Inc ................................27 XY Powersports ..........................25 Yuasa Battery Inc. ......................13

MotorcycleAndPowersportsNews 47

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Find out more about the classified advertisers in this issue online at

48 pitpass_Layout 1 2/12/14 10:56 AM Page 48

The Real Winners at the Anaheim Supercross

n a night when the legends helped celebrate 40 years of Supercross, and the evergreen Chad Reed added to his own legendary status with a win, the stuff of future legends played out in the pits even before the races started. Thanks to the kindness of a neighbor, a sick little boy and his family enjoyed a day at the second round of Anaheim Supercross as the special guests of the GOAT (Greatest Of All Time) Ricky Carmichael, Carey Hart and the entire RCH Racing team.Three-year-old Valentino “Valen” Ricciotti from nearby Dana Point, CA suffers from OMS, a rare auto-immune disorder that makes it tough for him to enjoy life. RCH Racing Soaring Eagle was able to put a smile on little Valen’s face … and introduce some new words into his vocabulary. Knowing that Valen loves motorcycles, neighbor Kyle Gryzanoski reached out to Shiela Howe from Sycuan Casino which resulted in Valen becoming an official member of the RCH Racing Soaring Eagle team at the Anaheim 2 Supercross. As a fully fledged team member, he received a personalized VALEN Fox/RCH racing jersey, an RCH team helmet, his name in lights on the scoreboard and a chance to walk the track. Of course, no factory ride is

48 February 2014 | Motorcycle & Powersports News

complete without a bike. Strider stepped up with a pair of “works” RCH Striders for Valen and his big sister. But perhaps the greatest part of being on the team was a chance to get some tips from Ricky Carmichael and Carey Hart. He isn’t saying what secrets the RCH Racing superstars passed along, but little Valen was beaming … and so were the big guys. “Thanks for the chance to hang out with Valen,” said team principal, Carey Hart afterward. “Such an awesome little kid. He and his family are great people. Positive thoughts for you lil’ man!” “Thank you so much,” added Valen’s mom Shandi in a post-race tweet. “You have no idea how awesome our day was ... Valen fell asleep hugging his helmet tight ... Great to have a day where Valen never stopped smiling!” Little Valen doesn’t talk much, but after his day as an honorary RCH Racing team member, he has added, “Vroom, vroom” and “Ricky” to his repertoire. OMS is a rare childhood disease where the immune system tries to battle a neuroblastoma (cancer) and instead attacks the brain. Left untreated, OMS will cause a life of agony for the child. The organization was founded on the principles of raising awareness of OMS and helping those researchers looking for a cure. Unlike the well-known diseases that afflict thousands of people, OMS has difficulty getting attention in the research circles and research funding is extremely limited. The OMSLife Foundation’s mission is to ensure that research is done on this terrible disease. Get more details at: http://omslifefoundation.org. In a case of good karma, Valen’s RCH teammate Josh Hill went on to win his heat race that night. Thanks to Fox, Sycuan, Strider, Feld Entertainment and Valen’s neighbor, Kyle Gryzanoski, for making this day the stuff of future legends! t

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