Motorcycle & Powersports News

04.2013

MotorcyclePowersportsNews.com

Adventure Guide April 2013 VOL. 39 NO. 3

How To Sell To The Adventure Set

Volume 39 Number 4 MotorcyclePowersportsNews.com

Selling to the Adventure Set

EDITORIAL

By Alisa Clickenger

Editor – Colleen Brousil cbrousil@babcox.com Associate Editor – Gina Kuzmick gkuzmick@babcox.com

32

Assistant Editor – Matthew Bemer mbemer@babcox.com

A Great Place to Race Motorcycle Land Speed Racing

By Gary Ilminen

Senior Editor – Brendan Baker bbaker@babcox.com Columnists & Contributors Ricky Beggs Heather Blessington Alisa Clickenger Cyclepedia.com Steve Dodds II C.R. Gittere Gary Ilminen Steve Jones Mark Rodgers Vincent Stemp ART Sr. Graphic Designer – Tammy House thouse@babcox.com

Dealership Operations MPN to Produce AIMExpo Show Publications

8

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

The Road Ahead by Colleen Brousil

February 2013 Service Department Performance 14 ........

Best Operators Club by Steve Jones

Sales Slightly Lower, But Spring Is Right Around The Corner

16

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

Black Book Market Watch by Ricky Beggs

Shaft Drive Systems Require Maintenance Care

18

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

Tech Tips by Cyclepedia Press

20

Breaking The Bad News

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

Peak Dealership Performance by Mark Rodgers

Social Media Management

22

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Web Savvy by Heather Blessington

The Cash Customer

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

24

Finance & Insurance by Steve Dodds II

Driving Your Team To Success

Product Focus Black Gold Today’s Top Oils ...................................................................................... 38

26

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The Service Manager by C.R. Gittere

Essentials: Protective Gear

Santa Fe Harley Davidson: Engaging and Honoring Its 30 Community

Driving Forward

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

Destination Dealership by Margie Siegal 6 April 2013 | Motorcycle & Powersports News

Give Riders Peace Of Mind .................................................................... 42

Drivetrain P&A ........................................................................................ 44

THE

Road AHEAD

By Colleen Brousil 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

MPN to Produce AIMExpo Show Publications

I

’m excited to tell you that Marketplace Events, producers of the American International Motorcycle Expo (AIMExpo), has awarded MPN’s parent company, Babcox Media, a contract to publish the AIMExpo Show Daily, AIMExpo Show Directory and AIMExpo Consumer Souvenir Program.

I’ll be leading the editorial team, and can’t wait to begin to pull together these exciting publications for this dynamic show! Our work will culminate live at the inaugural AIMExpo at the Orange County Convention Center, Oct. 16-20, 2013, in Orlando, Fla. AIMExpo has already made headlines, and there’s sure to be many stories to tell as OEMs, distributors, parts and accessory manufacturers, dealers, consumers and the media all converge at the event. Industry veterans Mike Webster, Larry Little, Cinnamon Kernes and Kerry Graeber have done an amazing job building the event, and it is an honor to work with them.

“We’re thrilled that MPN will be the official publisher of the AIMExpo Show Daily, Directory and Souvenir Program,” said Mike Webster, president, Trade Show Division of Marketplace Events, in a press release announcing the deal. “As a leading trade media brand in the powersports industry, MPN is ideally suited to perform this vital function. Collectively, these publications will help convey our vision for an energetic and efficient show platform, and provide additional value to AIMExpo exhibitors and attendees. We’re looking forward to working with the MPN staff to bring these important products to the market.”

While you’ll have to wait a few more months to get your hands on the premier editions of the AIMExpo publications, you can stay up-todate on show news throughout the year by visiting the show’s website at www.aimexpousa.com and by subscribing to MPN’s eNewsletter at www.motorcyclepowersportsnews.com. We’ll keep you posted as more vendors sign on to the already impressive list and as show events and announcements are made. There’s going to be lot to see in Orlando this October, and I hope to see you there! t

Bobbie Adams 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

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 2013, Babcox Media, Inc. 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 nonqualified 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.

8 April 2013 | Motorcycle & Powersports News

Inside the Industry > Mark Blackwell Named Chair of the Motorcycle Industry Council Board of Directors The Motorcycle Industry Council congratulates Mark Blackwell, vice president, special projects at Polaris Industries, on being elected chair of the MIC Board of Directors, effective immediately.

Blackwell has served intermittently on the board since the early 1980s and takes over for outgoing chair Larry Little, who remains an active elected board member after having served as chair for the last 10 years. For 2013, Blackwell joins the other officers: newly elected vice chair Jon-Erik Burleson, as well as returning secretary/treasurer Eric Anderson and president Tim Buche.

“It is an honor for me to serve the industry as chair of the MIC,” said Blackwell. “This is a very exciting time for the industry and for the MIC. Although we certainly face many challenges, I believe the MIC’s work in

providing valuable research, educational opportunities, government relations and marketing support are all vital to our current and future success. Also, I’d like to thank Larry for his lengthy tenure and for continuing service as a director. On behalf of the members, the other directors and the industry at large, we are grateful for his exemplary service, leadership, counsel and investment.”

Blackwell added that one of the many initiatives he’s excited about is the recent implementation of the MIC’s new dealer and retailer class of membership.

“I am excited about the many benefits MIC can provide to dealers, including the ever expanding range of marketing and statistical information, as well as educational opportunities like the new webinar series,” he said. “Plus, having dealer representation across the country will add a powerful voice when the MIC works on behalf of the industry on legislative and regulatory matters and increasing other threats to our industry.”

Little did not seek re-election

10 April 2013 | Motorcycle & Powersports News

to the office of chair after having served in the position since 2003. Also, the vice president and general manager of the recently formed Motorcycle Group of Marketplace Events, Little, requested that he not be considered as a candidate for chairman in 2013 due to time conflicts.

“Simply stated, the pace of my day job — of launching the inaugural AIMExpo this fall — is increasing, and is requiring significantly more of my personal bandwidth,” said Little. “The role of board chair involves much greater interaction with MIC staff, and I was reluctant to try and strike a balance between my responsibilities at Marketplace Events and as MIC chair. With a year left on my current term, I remain an ardent enthusiast of the industry and look forward to continuing to serve as a fully active member of the board. Congratulations to Mark Blackwell on his new position. His commitment to the industry is well-documented, and his leadership skills make him the perfect choice to lead us as MIC continues to actively promote, protect and grow the business of motorcycling.”

Inside the Industry Newly elected vice chair Burleson is president of KTM North America and has served on the MIC board since 2008.

Burleson is excited to assume the new role of vice chairman this year and is enthusiastic about his new responsibilities.

“I feel very honored being elected vice chair,” said Burleson. “I have nothing but respect and admiration for the other board members, their diligence and their dedication to MIC’s mission. In my new role, I look forward to helping further the efforts of the MIC and increasing my contributions to the board’s overall goals. Finally, I want to express my appreciation to Larry for his years of leadership and commitment, particularly during the most challenging market environment of the last decade.”

This year, VROOM Network president Anderson returns for another term as secretary/treasurer on the MIC board. He has been an active board member for the last 12 years and is eager to work with MIC as it faces the challenges of the future.

“I was originally an MIC staffer back in the 1980s,” said Anderson. “So this feels

like coming full circle — I’m home. It’s my hope that my experience as an apparel expert, branding consultant, start-up entrepreneur, retail trainer and MIC board member will help grow our industry. I want to thank Larry for his years as chair. It was a pleasure to serve with him in that capacity and now I look forward to serving with him as a director as we move forward. I also look forward to working with MIC’s new generation of leadership, including chair Blackwell and vice chair Burleson, who will assist us in making a huge difference as we enter a totally new era for MIC.” In addition to Blackwell, Burleson, Anderson and Little, the 2013 MIC Board of Directors includes Bob Gurga (Honda), Steve Bortolamedi (Suzuki), Russ Brenan (Kawasaki), Hans Blesse (BMW), Dennis McNeal (Yamaha), Frank Esposito (Kendon Industries), Steve Johnson (Tucker Rocky) and Don Emde (Don Emde Inc.). t

> Star Motorcycles Unveils New Bolt Models Star Motorcycles, a subsidiary of Yamaha, recently unveiled the Bolt and Bolt R-Spec models during Daytona Bike Week.

Yamaha keeps prices of the Bolt in check (MSRPs of $7,990 for the standard Bolt and $8,290 for the R-Spec) by utilizing the air-cooled, 942cc fuel-injected V-Twin already used in the V Star 950. The 60degree engine mounts in an all-new, double-cradle steel frame with a short wheelbase of only 61.8 inches long and a low seat at 27 inches from the ground in a slim, uncluttered shape. Suspension is handled by a conventional 41-millimeter fork with 4.7 inches of travel and a pair of rear shocks that offer 2.8 inches of cushion.

Twelve-spoke cast aluminum wheels are fitted with bias-ply tires in sizes 100/90-19 front and 150/80-16 rear.

The 3.2-gallon teardrop tank has subtle badges, the front and bobbed rear fenders are made of steel, and

MotorcyclePowersportsNews.com 11

Inside the Industry contemporary touches include an LED taillight in a classically styled housing and an LCD speedometer beneath a smoked lens.

The two-into-one exhaust features black headers, but with heat shields and muffler done in contrasting aluminum. Gold-anodized shocks with piggyback remote reservoirs distinguish the R-Spec model, which also has an upgraded saddle with contrast stitching. The standard Bolt is available in Raven or Pearl White, whereas the R-Spec comes in Matte Gray or Camo Green.

“We’ve seen the cruiser market transition through the chopper trend to back-tobasics bikes that prove less is more,” said Derek Brooks, product manager. “The focus is now more on the motorcycle itself and less on chrome and flashy paint. This is a solid trend, and I think that the Bolt is going to be very appealing to all types of riders.” t

> Sudco International Releases New Main Catalog Sudco International recently released its latest Main Catalog, Vol. 37. The catalog features 556 pages in full color of its complete line of OEM quality stock replacement and high performance parts for classic and late model Japanese and European street and dirt bikes, ATVs and personal watercraft.

The new Sudco Main Catalog is complimentary to dealer accounts. Retail customers can receive the catalog for $20, which is refundable with the first $50 purchase. t

> Schuberth Wins “Best Brand” Award Eighth Year in a Row German helmet manufacturer Schuberth has once again been awarded the title of “Best Brand” for the eighth time in succession in the helmet category. This title is awarded annually by Germany’s largest motorcycle magazine, MOTORRAD, within

12 April 2013 | Motorcycle & Powersports News

the scope of the reader contest “Motorcycle of the Year.”

This year, 30,245 readers participated in the contest. Schuberth earned 61.9 percent of the votes, increasing the previous year’s tally by 5 percent.

“Receiving the Best Brand award is a very special honor for us,” said Marc-

Throsten Lenze, head of communications at Schuberth GmbH. “In contrast to many other awards from specialized journalists and independent testing institutes, selection here is made directly by the motorcycle riders, with their personal experience from everyday use. We want to express our heartfelt thanks to all participants.” t

BEST

Operators CLUB

By Steve Jones

February 2013 Service Department Performance

I

n this article, we’ll be comparing

February data from a good-performing metric 20-group, the National Norm (NN) numbers and the averages for the Top 5 dealers of the group in each category.

Total store sales were up slightly for the group, but dropped considerably for the Top 5 and almost 4 percent for the NN dealers. Many of these dealers are located in areas that were hit hard by bad weather, so that may have been a factor.

Despite the reduction in total store sales, the overall gross margins continued to improve. It is worth noting that these dealers held tighter to their margins as sales tightened up. It seems logical, but many dealers go the other way and resort to heavy discounting to improve sales. You have to weigh the profitability against the volume because oftentimes, it is worthwhile to sell less and make better profits. Remember, gross profit pays the bills.

Door swings continued to improve for the Top 5, but they paid a premium for it.

Last year, these dealers averaged $32, $53 and $30 per swing, respectively. In the case of the group and NN dealers, this could be a result of fewer swings for the money spent. In other words, they may not have spent more money than last year, but they got fewer swings for what they did spend.

Labor margins were down slightly.

This indicates that overall revenue was down relative to tech compensation.

Most of these dealers are ramping up staff for the coming season, but the business has not started rockin’ yet — these numbers only reflect February business, after all. The target for labor margin remains 70 percent (labor revenue less tech compensation). Dealers need this much

gross profit in order to cover the expenses and end with a profit. As you might expect, repair order volume was down around 8 percent for the group and NN dealers; however, it was up for the Top 5.

The increase in personnel expense as a percentage of department gross profit indicates staff increases prior to the season. This number represents the nontech staff such as service managers, service writers, lot techs, etc. In general, we see successful dealers having about an equal ratio of techs to non-tech staff.

In other words, if a dealership had four

needs quickly. Tech time is the most expensive hourly time in your store. Everything you can do to maximize the time techs are on jobs will return greater profits and higher customer satisfaction.

Billed hours are up nicely for the Top 5, but took a drop for the NN dealers.

Hours per repair order are up across the board from last year. This indicates improvements in the service writer processes. If service writers have the time to properly greet your customers, establish rapport, thoroughly check over the unit and up-sell where possible, they will sell more service labor and parts. In addi-

CHART 1 GROUP NORM

Total Store Stats

816,000

Total Store Sales YTD

TOP 5 DEALERS

NATIONAL NORM

1,362,000 983,000

2.5%

-23.4%

-3.7%

Total Store Gross Margin

24.5%

27.2%

25.4%

Gross Margin for Previous Year

21.1%

27.0%

22.7%

Contribution to Gross Profit: Service Department

18.6%

23.7%

16.0%

Total Store Sales Change from Previous Year

Door Swings: Change from Previous Year

-4.2%

31.8%

-7.0%

Cost Per Door Swing

$40.86

$68.05

$35.66

techs, you would expect to also see four people in support staff roles.

The target for the parts sold to repair order labor ratio is 1:1. The service department should represent 35 percent to 40 percent (or more) of your parts sales.

This is your biggest parts customer, and they need to be treated as such. Service parts need to have priority for fill rate and order status. There should be a designated parts person (usually the shipping/receiving person) who is responsible to respond to service parts

14 April 2013 | Motorcycle & Powersports News

tion, you’ll have happier customers. The goal is to uncover and satisfy all of the customer’s wants and needs without follow-up calls asking for additional repairs. Surveys prove that each additional “We found additional repairs…” phone call reduces customer satisfaction with your service operation. That impacts your ability to retain these customers and sell them their next motorcycle, ATV, UTV snowmobile or PWC. Productivity and proficiency are way down from the target of 85 percent. This

CHART 2

Part 1 GROUP NORM

TOP 5 DEALERS

Labor Margin

67.5%

78.6%

62.2%

Dept. Margin Change from Previous Year

-2.6%

-0.2%

-2.2%

Dept Operating Profit Change from Previous Year

-0.5%

1.5%

-0.8%

Repair Order Volume Change from Previous Year

-8.0%

5.5%

-8.3%

Personnel Expense as a Percent of Dept. Gross Profit

83.8%

45.2%

62.5%

0.89

1.15

0.91

Service Dept Stats

Parts Sold to Repair Order Labor Ratio

NATIONAL NORM

CHART 3

Part 2

Service Dept Stats

GROUP NORM

Billed Hours Precent of Change from Previous Year

0.5%

15.8%

-8.2%

Billed Hours Per Repair Order

1.88

2.29

1.87

Labor Sales Per Repair Order Dept Productivity Tech Efficiency Dept Proficiency Average Number of Service Staff, YTD Gross Profit Per Service Employee, YTD

means that techs are doing a lot of things besides working on units. I suspect that most of these dealers are finding “projects” to keep them busy (and paid) while waiting for the season to break. This is backed up by the fact that they are billing around 100 percent for the hours that they are working on units (efficiency).

Gross profit money sold per employee is a very important measurement of the effectiveness and productivity of your staff. Monitor this closely throughout the year. One of the reasons it is so much higher for the Top 5 is that their average employee is above average in performance. In addition, their staffing ratios are proportionately correct — they have sufficient service writers. If your

TOP 5 DEALERS

NATIONAL NORM

$150

$181

$154

59.1%

77.3%

59.6%

100.0%

110.6%

100.8%

58.7%

76.8%

59.1%

5.6

7.8

5.6

$6,287

$8,777

$6,749

service writers are consistently doing 200 or more repair orders per month, they won’t have time to maximize parts and labor sales, let alone uncover all the needed repairs or services. t Steve Jones, GSA senior projects manager, outlines dealerships’ best business practices to boost margins, increase profitability and retain employees. His monthly column recaps critical measurements used by the leading 20-group dealers. Access to the new Voyager 5 data reporting and analysis system is available to any dealership for nominal fee. For more information on GSA’s management workshops, data reporting system, dealer 20-groups, on-site consulting or training, send Steve an email at steve@gartsutton.com or visit www.gartMotorcyclePowersportsNews.com 15

Black Book MarketWatch

By Ricky Beggs

Sales Slightly Lower, But Spring is Right Around the Corner

T

his month finds the powersports market cranking up for spring.

Values are up for all segments except snowmobiles, but by slightly lower amounts than normally expected at this time of the year.

With record snowfalls in the Northeast coming too late in the year to nudge prices upwards, this month’s negative 2.4 percent decline in sled prices will seem like good news when next month’s numbers are reported.

Continuing the trends from last month, off-road, ATV and utility vehicles are all up about 1 percent. On-road street bikes are up a little bit

ATV

Cruiser

Jet Boats

Off-Road

0n/Off-Road

Scooter

Snowmobile

Street

Utility

Watercraft

Average Used Values

February to March Used Unit Value Change

ATV Cruiser Jet Boat Off-Road On/Off-Road Scooter Snowmobile Street Utility Watercraft

February

March

Percent Change

$3,710 $8,389 $17,413 $2,499 $4,896 $1,929 $4,662 $7,009 $6,989 $5,297

$3,741 $8,692 $17,797 $2,528 $4,977 $1,962 $4,551 $7,143 $7,037 $5,412

0.80% 1.50% 2.20% 1.10% 1.70% 1.70% -2.40% 1.90% 0.70% 2.20%

16 April 2013 | Motorcycle & Powersports News

more with cruisers up 1.5 percent, scooters and dual sports up 1.7 percent, and the non-cruiser street bikes up 1.9 percent.

The biggest jumps in value this month are personal watercrafts and jet boats, which are up 2.2 percent.

These gains, while substantial, are slightly less than we normally see at this time of the year. But, some of the more recent auction results to come in have shown more pricing strength, so expect those same segments to show additional increases next month. t

TECH

Tips

Cyclepedia Press LLC

Not as Low Maintenance as You Might Have Thought: Shaft Drive Systems Require Maintenance Care

S

haft drive systems are advertised to consumers as low maintenance systems.

 While they may not require the habitual maintenance of a

chain or a belt, shaft drive systems do have maintenance needs.

If a shaft drive system isn’t serviced correctly, problems may stay hidden in the short-term. In the long run, this could result in a dangerous and expensive failure. The three main elements of caring for a shaft drive system are lubrication, bearing condition and gear fitment.

Lubrication is the most basic maintenance item for shaft drive systems. The final drive unit requires periodic oil changes.

When draining the oil, check for signs of metal shavings as this could be a sign of damage to the gears.

 When refilling the final drive oil, be sure to check with the

service manual for the correct lube type. These systems often require Hypoid gear oil. Fill the final drive unit with the correct amount of oil or until the oil level reaches the check bolt hole. Take note that not all final drive units have a check bolt hole. If there isn’t one, fill the unit with the precise volume of oil called for by the service manual. Take extra caution to not overfill.

When servicing a final drive, pay close attention to the condition of the oil seals. Refilling a final drive with a leaky seal won’t do any good. If the final drive goes dry, it will cause much bigger problems than an oil seal replacement.

A shaft drive system will have multiple bearings supporting the shafts. If the bearings are worn out, it will accelerate the wear of the rest of the system. Many times, replacing the bearings in a shaft drive system will require special tools. Consult the service manual for the model in question to have special holders, locknut wrenches, bearing pullers and drivers ready for the job at hand.

18 April 2013 | Motorcycle & Powersports News



Shaft drive systems do require maintenance.



Fill the final drive with the correct type and volume of oil.



Bevel gears allow the power to be transferred at a right angle.



Use a dial gauge to measure the backlash.

 On most models other than Goldwings, the crankshaft

and transmission are spinning at a right angle in relation to the drive shaft. In order to transfer power, a set of bevel gears is used to direct power from the transmission to the drive shaft. In the final drive unit, a pinion and ring gear transfer the power from the drive shaft back into line with the rear wheel on a motorcycle or the drive wheels on an ATV. In both cases, the fitment of these gear sets is crucial to the performance of the shaft drive system.

 The first item to check when inspecting the gear fit-

ment is the backlash. The backlash is the maximum amount of movement the gear can turn without turning its mate.

Measure the backlash by holding one shaft still and turning the other back and forth. Measure the amount of free movement with a dial gauge. Adjust the backlash by changing the shims with the gears. There are shims with both gears. Usually the OEM service manual will call for adjusting only one set of shims to set the backlash and using the other set to adjust the gear tooth contact.



Use shims to adjust the backlash and gear fitment.

 After the backlash is adjusted to specification, check

the gear tooth contact. Remove one of the gears and apply machinist’s dye to the teeth of the drive gear. Mate the gears together as if installed and rotate them in the normal direction of rotation. Check the marks transferred by the dye to see where the teeth are making contact with their mates.

The teeth should be connecting on their centers, not on the edges, tops, or bottoms. Adjust the shims so that the backlash is in specification and the teeth are mating correctly.

 In addition to the gear oil, bearings, and gear fitment,

be sure to check any universal joints or constant-velocity (CV) joints in the system. The U-joints should move smoothly. Some U-joints have replaceable bearings if they are not turning smoothly; others must be replaced as a whole. Check the CV joints for damaged boots and smooth movement. If a boot is damaged, disassemble the CV joint and rebuild it with OEM specified grease and a new boot. t



Inspect the movement of universal and constant velocity joints.

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

MotorcyclePowersportsNews.com 19

PEAK

Dealership PERFORMANCE

By Mark Rodgers

Breaking The Bad News: How to Give Trade Values Without Getting Punched

“S

o what will you give me for my trade?”

The customer eyes you up with the intensity of a Turkish carpet trader at the Grand Bazaar in Istanbul. You look at his gleaming 9-year-old freshly washed ride and take in the custom paint job. It truly is a piece of work.

You’ve probably seen this on a bike before: an airbrushed wizard fighting off a mongoose surrounded by an army of rabid squirrels on the edge of an impossible cliff. Lots of time, money, effort and a little dash of crazy went into a piece like that.

It’s a tricky spot to be in. This person is convinced that the bike is worth a million bucks, and you know you’re either going to have to find the perfect wizard-loving, mongoose-hating buyer or a paint gun. You sigh as you think to yourself, “This

isn’t going to go well.”

We’ve all been in similar situations. The fastest way to get punched during a deal is to insult the trade. It’s so common in today’s dealer world that we rarely think twice about running down a laundry list of scratches, dents, ill-advised accessories, bald tires and just plain bad taste when delivering a trade-in value. There are no winners at the conclusion of that conversation.

Endowment Effect A research experiment tested what would happen if students who purchased sport bottles asked for more money than they paid for when someone wanted to buy the sports bottles back.

Students purchased the bottles at various prices ($5, $7, $9) and used the bottles for a couple of hours while they engaged in other activities. When it came time to sell the bottles back, the students were offered exactly what they paid for the bottle initially. Almost none of them sold at that price; they all wanted more! This phenomenon is called the endowment effect. Once a person possesses an item, they attach a higher value to it.

Building Them Up, Not Tearing Them Down What if we were to think unconventionally about trade value?

What if you started low and, through a series of compliments, added on dollars until you reached the amount you are willing to provide for the trade?

“Typically the trade-in value on your bike is $4,000,” you say, knowing what’s going to happen next. The customer immediately begins his Tomahawk Cruise Missile launch sequence. Just before he achieves lift-off, you chime in, “But, you’ve made some smart moves that will enable us to offer you more.” You can see the rage dissolve to pride in his eyes as he says, “Tell me more.”

Now you can relax and enjoy talking about what’s cool about the bike.

“Are these tires new? Great, we can add an additional $250 to your trade-in value. You’ve kept the paint original and in great condition — we can add another $500 to your trade.

Have you done all of the scheduled maintenances? Great, we can add dollars for that, too!”

The options are almost limitless. This approach will make the customer feel like the customization and maintenance of his bike has paid off. Why start this deal off on a sour note?

20 April 2013 | Motorcycle & Powersports News

Setting Expectations Earlier When the subject of a trade comes up in the sales process, don’t be afraid to set some expectations. If a customer throws out an out-of-this-universe trade figure, don’t stop the music.

“Hmmm … $53,000 sounds like a lot of money for a 1979 Sportster. I don’t think we’ve ever come close to offering that sort of money. Here’s what I’m going to suggest: let’s find the right bike for you, then let’s look at your trade and talk about what’s fair.”

“I was at the latest auction this past Friday, and a bike almost identical to yours sold for $12,300. Because you are a great customer and have taken care of your bike, I can give you $12,700 for it.”

That sounds a whole lot different than, “I’ll give you $12,700, take it or leave it.”

Which would you rather hear as a customer?

Want more ways to avoid a black eye?

Stay tuned for part two! 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. Contact Mark@peakdealership performance.com to improve your performance.

Previous Sales History How do you get to that initial starting place? Start with all the books and guides you’d like, but nothing is as relevant or strong as your own personal previous sales history. If the last black 2010 Road Glide in similar condition sold for $14,500, it’s a good bet that it’ll bring similar but probably slightly lower money this time around. When you are about to send that offer over, you need to have a sales history to verify what that trade will sell for on your floor. If you have taken the time to crunch the numbers, then you’ll already know what you should offer on trade.

Time on Floor Inventory costs money. You have to pay for it in cash flow, or you have to pay to floor plan it. Either way, that inventory sitting on your floor is gobbling cash and decreasing your real profit margin the longer it sits. If your average time on floor for Dyna models is 126 days, you had better take that into consideration when coming up with the number. What does this have to do with telling your customer what the trade is worth?

Buyers are more educated than ever.

If you can statistically demonstrate how long their bike will take you to sell, you have demonstrated a logical and hard to refute reason for the trade-in value. Don’t be afraid to build them back up from this point with some extra dollars for quality components on their trade.

Auction Prices Another great way to build your credibility as an expert on bike values is to head to your local auction and watch the gavel fall. There is no better insight to the market than the actual market itself.

MotorcyclePowersportsNews.com 21

WebSAVVY I

f you are like most dealers, managing your social media channels is a random mix of posts updated only when time permits. Measuring performance on your channels gets pushed to the back burner since figuring out content is time consuming enough.

This article will help you create a social media marketing plan that works for the long term. The information provided here includes proven strategies specifically for dealerships. All you have to do is hold up your part and commit to three things: resources, time and budget.

Social Media is Free By now, you know that although it’s “free” to sign up for social media channels, managing these channels requires budget and qualified staff. On average,

dealers should be spending 10 to 20 hours per week on social media marketing. That time should include performance reporting. This time equates to either a part-time or full-time internal position depending upon the size of your dealership, objectives and goals.

I Want ROI, Like NOW No doubt about it, social media market-

By Heather Blessington

Social Media Management ing requires patience. This arena of marketing is by no means turnkey, but I can assure you, I have never seen a dealership fail if it commits to its efforts. You should be seeing foot traffic marching into your dealership within three to six months — even sooner if you start offering social-media-specific coupons right out of the gate.

Track Conversions The biggest hurdle to driving foot traffic to your dealership is you. I speak from experience. Each week, my highly motivated, extremely passionate team meets to whine about our dealer clients who promised to track our well-executed Facebook promotions through to sales conversion — but then the dealer doesn’t hold up its end of the bargain.

We cry, we scream, we get all the venting out of our system, and then we discuss solutions. To date, we have not discovered one, so if you have the magic answer, please tell me.

You must require your entire staff to track social media driven promotions at checkout. Here’s where it gets tricky.

Customers may come in with printed coupons, but they’re more likely to flash their mobile phone to your cashier with the Facebook offer displayed on it. If your cashier gazes back, dazed and confused, it’s a problem. Your cashier must track this sales conversion. The tracking can be easy as a checkmark on a piece of paper — just make sure they do it. Every single coupon/offer redemption must be tracked. Otherwise, what’s the point?

Assigning the Right Resources Let’s start with what may be my biggest pet peeve of all time: dealers who say something like,“My daughter is coming

22 April 2013 | Motorcycle & Powersports News

home from college for spring break, and she’s big on all this social stuff, so she’s going to handle it from here on out.”

This is so foolish. You are running a business. Don’t be a cheapskate, and don’t underestimate the power of social media marketing. The first issue is that just because your son or daughter spends 18 hours a day on Facebook it doesn’t mean that they know how to market your business. Second, I don’t care how old you are, you need to learn about this stuff. Don’t pawn any marketing responsibility off on others and expect it to get done correctly. It’s time to get your hands dirty and learn it at a high level so you can assign resources appropriately.

If I were a dealer, I would have the most qualified internal resource manage my social media marketing. This person would generally be your marketing person, but not always. Perhaps your service manager or IT person possesses the right skills for the job.

If I didn’t have an internal resource, I would hire one on a part-time hourly basis. Word of warning here, everyone is a social media specialist these days, so do your due diligence in reviewing past work samples, client references and resumes.

Outsourcing Social Media Management In both scenarios, I would outsource with a company specializing in the powersports industry to work as a mentor/trainer with the internal staff member. The social media market is changing and evolving so quickly that even my company has a hard time keeping up with it. For example, Facebook and Google+ enhance and update weekly. This information can make or

break your social media efforts –– your marketing person may be moseying along with no sense of industry best practices in security, privacy or current feature set. Read: security breaches to your customer data, lack of reach to target demographic, and content postings that sit and spin when they should be informing your social communities of your dealership happenings. All of these stories result in lost revenue for you.

Social Channel Relevancy Facebook is by far the most utilized social channel by dealers, and with good reason: it has the highest number of subscribers in every single demographic.

This means you should dedicate at least 50 percent of your social media marketing time to Facebook efforts, which includes Promoted Post Advertising campaigns.

Google+ and Twitter are the other two channels that I consider must-haves.

The thought of managing three channels is daunting; however, the use of Hootsuite makes this problem disappear.

Hootsuite is a social media management tool that allows you to post to multiple channels simultaneously, and it only costs $9.99 per month. Even better, Hootsuite allows your posts to be scheduled, so content can be planned ahead of time and posted when your fans are most active.

YouTube is another powerful social media marketing tool. The ability to express company culture, personality and style via video is second to none. Furthermore, 30-second walk-around videos sell vehicles like there’s no tomorrow.

Dealers who dive into YouTube are the most successful I have seen. The hard part is figuring out who is going to put their face on camera and who is going to shoot the video (it’s simple to shoot from a smartphone using the YouTube app which will automatically upload the video).

Finally, we have two other visualbased tools: Pinterest and Instagram. Instagram is owned by Facebook and it can be integrated into your account, so that is a plus for its usage. Pinterest is known for its “boards” format, which

Read about the reporting tools for the other social media channels mentioned in this article at the following URLs: Twitter: http://hootsuite.com Google+: http://www.allmyplus.com/ Pinterest: http://bit.ly/13XLYlV Instagram: http://statigr.am/ YouTube: http://bit.ly/Qov7m2 auto-magically sorts your images into an eye-pleasing display that begs to be viewed and repinned by any enthusiast with a passionate bone in his or her body. My advice here is to take one of these channels on, if and when you have mastered the management of the big three under the umbrella of Hootsuite, Facebook, Google+ and Twitter.

Performance Reporting Facebook insights are right there for the reading, so you must take the time to review the reports. The demographic and city reports tell you who your fans are and where they live, and you will likely be surprised to find that your in-store demographic is different than your online demographic — which is something you need to consider and accommodate for when planning your content and promo-

tions. Next, the daily performance reporting on key metrics is essential. The key metrics include “Reach,” “Likes,” “Engagement,” “Talking about this” and “Virality” (hover over each metric on your report to learn what each statistic means for your business).

Your website reporting tool (i.e.

Google Analytics), will tell you the referral traffic from your social media channels. t

Award-winning blogger and CEO of Duo Web Solutions, Heather Blessington is a nationally-renowned speaker on social media marketing and a digital marketing veteran. Her company provides MPN monthly columns focused on best practices in Web marketing for powersports dealers.

MotorcyclePowersportsNews.com 23

&

Finance Insurance

By Steve Dodds II

The Cash Customer Swing At the Conversion Every Time

O

ver the past several years, I’ve spent a lot of time looking at dealership numbers and talking to sales and finance managers about how they do what they do. I have been able to quantify and explain why particular behaviors, environments and approaches produce the best results in a finance office.

In this three-part series, I will share with you how top-performing finance managers convince customers to finance with their dealerships instead of using their own financing or cash that they have on hand.

I would like to start by saying that conversions are successful about 10 to 20 percent of the time. This percentage shift adds between $50 and $250 to your Per Vehicle Sold (PVS) average. This can make a huge difference to both you and the dealership.

The most important thing that all successful finance people can do is to keep the customer’s ego out of the discussion. If a finance person comes across as telling the customer what to do with his or her money, the customer will defend him or herself. If, on the other hand, the finance person provides information that makes it easy for the customer to make the logical decision, then the help is appreciated and people’s egos go along for the ride.

Step One: Find out where the money is coming from The easiest place to start this conversion is at the finance manager’s first meet-andgreet. I talked about this in last month’s article, Meet the Customer Early, which is available in the MPN online archives.

After verifying that the customer’s information is correct, complete and legible, say, “The last piece of information I need is your lienholder’s address.” The customer

might answer in a variety of ways, and you’ll be able to determine where the money is coming from and whether they have a lienholder based on how they answer. It’s a reasonable question because you need this information in order to register the lien.

cash as a down payment and keeping the remainder in the bank, customers will not only have a current credit history but also cash on hand. This allows customers to borrow money for larger needs and have cash to cover smaller emergencies.

Step Two: Present your evidence If you are dealing with a true cash customer — not a credit card or cash from the bank — make a series of arguments against cash payment.

Step Three: Close You want to include these word tracks when you ask a buyer to choose your financing plan: • “I am not telling you what to do.”

This further disarms the ego.

• “This loan can be paid off at any time.”

If customers know that they can pay the loan off or refinance it at their bank, it’ll make them feel more comfortable going forward with your financing plan.

• “If it makes sense for you, did you want to go ahead and finance through us?”

When you say this, it makes it hard for the customer to say no. It also allows you to back out if you’re not able to get someone approved. If they say yes, take their information, and assume they are going to finance with you.

Mortgage: If customers have mortgages, it might make sense for them to use the cash they have saved to pay down their mortgage rather than to buy a motorcycle.

Here’s an example of the math that goes along with your proposal. Feel free to do this calculation with the amount and interest rate you feel makes sense.

If a customer has a $100,000 mortgage, and they put $10,000 toward the principal on the loan, it would shorten the loan by five years. With an interest rate of 4.25 percent, payments would be $491. That would create a savings of almost $30,000 ($491 x 60 months), and with mortgage insurance and all the extra costs, the total savings would be around $37,500 by saving five years on a mortgage.

Forced savings plan: The idea here is that people should save a little money each month. By keeping money in the bank and making affordable payments, people are able to be in the same situation at the end of the loan with the security of having that money available to them if an unforeseen emergency arises.

Keeping credit current: With the insecurities of today, it’s important to make sure that all avenues are open in case of an emergency. By using a small amount of

24 April 2013 | Motorcycle & Powersports News

I guarantee you this: every time you don’t swing, you miss. Swing for the fences every time, and it will always make a difference. 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.

THE

Service

MANAGER

By C.R. Gittere

Driving Your Team To Success

Assemble Your Pit Crew and Get Your Rider on the Road

I

f you have ever watched racing on TV, you’ve probably noticed that everyone in the pit crew has a specific job during a pit stop. Think of your service department like a race team with your customer as the rider. When the customer drops off his unit, he will get it back sooner if everyone has a specific job.

The general structure of a service department makes up about five to seven employees such as a service manager, service writer and a couple of technicians.

The service manager should be just that: the department manager. His main job functions should include: • Assuming responsibility of staffing the department.

• Assuming responsibility for the profit and loss of the department.

This includes setting all menu prices.

• In conjunction with the parts manager and general manager, purchasing all supplies for the department and determining when bulk purchasing is best.

• Managing and monitoring the filing of all warranty claims.

• Managing and putting into place all departmental and interdepartmental work flow processes.

• Managing the use and upkeep of all departmental equipment.

26 April 2013 | Motorcycle & Powersports News

• Applying a process to measure and evaluate the performance of all department employees.

• In conjunction with the GM, developing service-based promotions to increase service sales.

• Keeping up-to-date on all factory recalls and managing the unit inventory on the sales floor to perform recalls before a unit is sold.

• Maintaining a good relationship with all OEM service providers.

• Submitting billed hours to payroll and maintaining all reporting procedures to the general manager.

• In conjunction with the service writer, overseeing the dispatch of repair orders.

There are too many times when a general manager expects a service manager to perform a certain number of repair hours every month while managing the service desk. This can cause a service manager to lose sight of the high-level tasks that need to be done every day.

Service writers typically have an unstructured day. In most cases, promoting a mechanic to a service writer is not a good plan. Service writers should be salespeople with mechanical aptitudes. They should be able to multitask, organize and plan.

Their main job functions should be: • Greeting, checking in and selling service work to all customers.

• Answering all service department phone calls.

• Scheduling incoming service jobs and repair jobs.

• Maintaining all contact with customers. Only in very rare instances should the mechanic communicate with the customer.

• Keeping the service desk neat and clean.

• Organizing the parts for the repair orders.

• Looking up the service schedules for the mechanics.

• Checking all incoming units for recalls.

• Keeping up-to-date on all factory recalls and their associated parts.

• Doing new unit walk-arounds so products can be introduced to a new customer.

• Coordinating all sublet labor pickup and delivery.

other day who was all excited about having all “A” techs in his facility. While that’s great, it will eat away at your department’s profitability. A service department should have a good mix of young “B” and “C” level technicians.

Nationally, we see top level techs in the $25 to $30 per hour range and “B” and “C” level techs in the $18 to $22 per hour range. If you are paying your techs on flat rate, and you have your top-level tech burning through service work, things can get expensive.

It is important that every store’s department make sure that every tech knows what his job is and that he has time to perform that job. On paper, it might look good for service writers or managers to perform repair work and for techs to help customers, but many times this causes confusion with your clients and can lead to more headaches. t

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

The task list above centers around staying at the service desk all the time. The service writer is coordinator of the department. The service writer should be the main point of contact for any internal or external customer.

Your top level “A” technician should do nothing but work on units. This should be his sole focus. Each department needs a workhorse, and your technician should be that person. He should not always be at the top of the heap on hours, and he often will get bogged down with difficult repairs. But, he should be doing nothing else but working on units. Always give your hardest and most difficult work to your best tech.

Your “B” level technician should spend all of his day working on units. He should be at the top of the heap in weekly hours billed. He should be very proficient in service work. He should also be able to diagnose most common repair issues quick and easy.

Your “C" level technician should spend a significant amount of time working on units during certain times of the year. The “C” tech should be placed somewhere in the department where the master techs can watch over them. He should be performing simple green lane jobs and possibly be the second highest hourly producer in your department. He should be building the new units and making sure the department is clean and ready for business.

This mix of technicians can mean a lot to the overall profitability of the department. I was chatting with a dealer the

MotorcyclePowersportsNews.com 27

PWC UPDATE RIVA Breaks Restrictive Hold of Stock ECUs on PWC Engines S

tock engine management systems have proved a difficult hurdle to clear for personal watercraft performance enthusiasts bent on pulling additional speed and performance from their craft. PWC aftermarket leader RIVA Racing, in conjunction with engine management hardware and software producer Athena’s GET DATA division, promises to break the restrictive hold stock ECUs have on personal watercraft engines, and as a result, open the door to significant performance gains. The just-released RIVA/Athena Pro-Series ECU is available for Sea-Doo models featuring iControl (including the RXPX 260, RXT-X 260 and GTR 215) and Yamaha watercraft equipped with the brand’s 1.8-liter engine (including the FX HO and SHO models, as well as the VXR).

The RIVA/Athena Pro-Series ECU was developed to be a direct, plug-and-play replacement for its stock counterparts, units that RIVA maintains are saddled by restrictive programming from the manufacturer, in addition to comparatively slow processors. In contrast, the RIVA/Athena unit features enhanced engine control programming and a far faster processor. It takes an estimated 15 minutes to replace and install. The unit mounts in the identical position to the stock ECU using an anodized, CNC-machined aluminum mounting plate, and uses factory connectors to plug directly into the stock wiring harness. Once installed, it controls engine functions including fuel delivery, timing, rev limit, electronic throttle control and, for performance customers using turbochargers, electronic boost control.

A knock-control function is designed to protect the engine.

The aftermarket ECU is also fully programmable and designed to take the guesswork out of the process. Customers can download pre-calibrated maps from RIVA’s ECU Manager website (www.riva-athena.com), designed to perfectly complement any of the brand’s popular Stage kits or IJSBAlegal racing packages. Customers can also customize the RIVA maps using supplied software to match special applications.

Customer support options include both phone and email technical support, in addition to the RIVA performance forums and online documentation.

Sea-Doo-specific units will make it possible to eliminate the stock GPS-controlled speed limiter. End-users will also be able to diagnose and clear fault codes using the included software.

Previously, this was possible only with the dealer-proprietary B.U.D.S. diagnostic tool. The ECU will also choose Sport mode, rather than Touring, as the default at startup, and retain all iControl functions including Intelligent Brake and Reverse.

In addition to diagnostics and map downloads, owners can 28 April 2013 | Motorcycle & Powersports News

use the second of the ECU’s two expansion connectors to add a number of accessories, all of which can be daisy-chained together. A Dash Logger display, featuring seven separate screens, enables the driver to monitor boost temperature, engine sensors, an accurate GPS-based top speed, as well as allow for a later download of all pertinent information for user review. The Logger operates in conjunction with the stock display unit, which can be mounted to the handlebar crossbar using an optional mount. Additional expansion modules include a boost controller, Lambda fuel-delivery controller and a dual-mapping switch to easily switch between an A and B map.

End-users can also customize the RIVA maps for special applications using the supplied software. The Sea-Doo unit’s features include the ability to eliminate the restrictive stock GPS speed limiter, enable the craft to start in Sport mode, and retain all the stock iControl functions, including braking and electronic reverse, as well as retain the stock dash functions and warnings.

RIVA/Athena ECUs also include a barometric sensor that can compensate for changes in altitude, knock-control engine protection and an easy-to-use diagnostic system that monitors all engine sensors. Of particular note to dealers, the unit does not require the Sea-Doo dealer-proprietary B.U.D.S. tool. Instead, users can diagnose and clear fault codes using only a computer connection with the included software. t

DESTINATION

Dealership

By Vincent Stemp Photos by Marilyn Stemp

Santa Fe Harley-Davidson: Engaging and Honoring Its Community

B

ecause our hard-earned dollars only go so far today, people actively seek ways to get more “bang for their buck.” Customers who spend money in today’s economy aren’t looking to just exchange cash for goods and services. They use their buying power to express support for the things that they believe in. Customers’ dollars are effectively their voice, and dealership owners have to be willing to listen.

“We work very hard to create an at-home feel here,” says Tina Reeves, marketing and social director at Santa Fe Harley-Davidson.

“We’re a family owned dealership, and the customers can feel the difference when they come in.”

For Santa Fe Harley-Davidson, it’s crucial in today’s market that riders who stop by feel that they’re a part of a family — a feeling that keeps them coming back to voice their support.

Harley-Davidson riders are a passionate group, and Santa Fe Harley-Davidson’s family ownership and cultivated sense of belonging sounds strongly with these riders. “The sense of belonging and family at Santa Fe Harley-Davidson is why I ride 60

30 April 2013 | Motorcycle & Powersports News

miles every day to work there,” Reeves says.

Success comes from more than just striking a chord with your customer base. Dealerships have to recognize the strong presence of armed service veterans among Harley-Davidson riders. Reeves has worked hard to establish her dealership as a focal point for armed service veterans who ride. Most Harley-Davidson dealerships have a good relationship with their local Harley Owners Group (HOG) chapter, but Reeves has worked diligently to reach out to veteran rider groups in addition to the local HOG chapter.

As a Marine Corps veteran and active rider herself, she’s been able to work with these veteran groups to use Santa Fe Harley-Davidson as a starting and finishing point for their group rides. Nothing gets the customers through the door like a gathering of their peers, and the veterans show up in force not only to ride, but also to spend money on parts, accessories and service.

Another strong sign of the dealership’s relationship to its customer community is its Wall of Honor, which recognizes the sacrifices made by armed service veterans for their country. The wall

started when Army servicemen stationed in Afghanistan took with them a HOG flag that they donated to the dealership once they returned as a thank you for the dealership’s support. Since then, Reeves has worked to expand the Wall of Honor by offering local veterans awards. “It’s a great attraction that shows veterans we’re committed to supporting them,” she says.

At the end of the day, Santa Fe Harley-Davidson is all about riding, and New Mexico just so happens to be a great place to do just that. “We do long and short rides from the dealership. We’re situated just far enough outside of the downtown area to make it easy to get to the good roads,” says Reeves, adding that some of the best rides in the area can be found in and around the Jemez Mountains, as well as the Angel Fire resort area on the northern edge of the Santa Fe National Forest. With more than 16 million acres of National Forest in New Mexico, there’s no shortage of natural beauty to explore. And what better way to explore it than on a motorcycle, surrounded by a group of like-minded peers?

Reeves organizes rides for other groups as well, including the American Woman Riders group (which can be found on Facebook at facebook.com/SantaFeHarley) that she founded and actively leads. She’s no figurehead, though. “I’m not the CEO, I’m the Chief Executive Riding Officer,” she laughs. Because Reeves is an active enthusiast, Harley-Davidson riders respect her and, as a result, are engaged and plugged into the dealership.

Santa Fe Harley-Davidson www.santafeharley.com www.facebook.com/SantaFeHarley

Santa Fe Harley-Davidson’s reputation for its motorcycle rides has made it a hot spot to stop for longer rides as well. “We get quite a bit of tourist traffic, including groups riding cross-country.

We have a group of Norwegian riders coming through in a couple weeks,” she says. With more and more riders riding their motorcycles to travel and unwind, Santa Fe Harley-Davidson has found its identity as a place to meet, greet and ride. The face of the dealership that Tina has sought to shape is one of respect for its community —something that more than just Harley-Davidson riders can appreciate. t

MotorcyclePowersportsNews.com 31

By

By Gary Ilminen Images by Gary Ilminen and Jacci Shauger

T

here are few places left in motorsports where the backyard mechanic with virtually no budget can still compete and earn a national or even a world record. Thanks to organizations like the American Motorcyclist Association (AMA), Bonneville Nationals Inc. (BNI), the Southern California Timing Association (SCTA) and others, there are great racing events where lowbudget amateur racers — like me, for example — can compete and have a chance to make a little history.

I started motorcycle land speed racing in 2009, when I competed in the SCTA World Finals at Bonneville. I rode a 1984 Honda V30 Magna purchased non-running for $400 that included an equally old trailer which towed the bike under a blue tarp behind my 1992 Ford Taurus. That first effort was as low

32 April 2013 | Motorcycle & Powersports News

budget as it gets. Nonetheless, the old Magna reached 104.54 mph and gave me the thrill of a lifetime. On that first time out, I missed setting a new national record in the 500cc production class by less than eight miles per hour!

The salt got in my blood, and I went back to Bonneville in 2010, this time with a 1974 Honda CB350F to compete in the BUB Racing Motorcycle Speed Trials, sanctioned by the AMA. In that event, my little four-cylinder Honda, which I got in barely running condition for $600 at an auction, unofficially set the first national record speed in the 350cc production class. When I set that record, I took my first trip to the hallowed ground known as “the impound area.” Making it there means you’ve qualified to set a record, and your displacement must be verified for the class. The bike passed final inspection, but my unofficial record didn’t survive the meet — it was beaten a couple of days later by a much newer Yamaha. Nonetheless, I had made it to the impound area — not 30 feet from Alan Cathcart and the new Norton 961 he rode to a world record that year.

In 2012, it was back to Bonneville with the V30 Magna in hopes of capturing the national record in the 500cc Production class at the BUB Racing Motorcycle Speed Trials sanctioned by the AMA.

Thanks to some wet weather, I didn’t get a record attempt, but I did get out on the salt and had a ball.

The assumption most of us have is that to be competitive in virtually any motorsport these days, you need bigtime corporate sponsors and a bottomless personal bank account. In a lot of motorsports, it’s true, but motorcycle land speed racing is still accessible to those of us who spin our own wrenches, pay for our own gas, pay our own hotel bills and buy our own parts and gear — or most of it, anyway.

In most instances, competitors like me will need a helmet, gloves, boots, leathers, sanctioned safety gear, and a range of parts and items the casual rider usually doesn’t have: a tether kill switch, steering damper, high-speed rated tires, number plates, metal fuel system components, Nomex fuel line covering, shop manuals (not only necessary in the pits, but may be required for validation of specifications), safety wire, twister pliers, pipe wrap, spark plugs, oil and extras of everything. You get the picture. It all adds up.

Before preparation for competition happens, the bike may need some attention to the basics. That was the case with both of the vintage bikes I’ve run in competition.

For example, the V30 Magna needed a

fuel system extreme makeover due to the 12-year-old gas that was left in it. That involved carburetor cleaning, flushing the system, testing the fuel pump and replacing the fuel filter. Closer to the competition, part of the fuel filter had to be redone to add the braided Nomex and replace the plastic fuel filter with a metal unit. The original tires, rusty O-ring chain and sprockets all had to be replaced. The “H” rated tires specified for street use didn’t have a high enough speed rating for competition, so those were changed to Continental models with a “V” rating.

Through it all, my friends at local dealers were great assets in helping the Bonneville dream come true. Vetesnik Power Sports in Richland Center, Wis.; Motorcycle Performance in Madison, Wis.; Team MS Racing; Papa Wheelies Speed Shop, in Richland Center, Wis.; and Suter’s Speed Shop, in Madison, Wis., all provided sponsorships in terms of free or discounted parts, safety gear and technical advice.

I hardly go a day without sharing my appreciation of these sponsors with friends, family and other riders. Are you offering grassroots support to local racers? If not, you may be missing an opportunity to develop an invaluable customer evangelist like me. t

With the help of friends, sponsors and a little luck, the Bonneville dream lives on.

MotorcyclePowersportsNews.com 33

By Alisa Clickenger

A

dventure motorcycling is growing. It’s loosely defined by the bikes, and the genre is not limited to knobby tires or big metal panniers — it encompasses almost everything in between. Adventure motorcycling is a mindset; a way of approaching the world. It’s a means of expression; riders want to live out their dream adventures or maybe just look like they are. The way you approach your customer is key to success with this segment of the market.

The Lifestyle The next customer that walks in your door is your next adventure motorcyclist. Whether it’s the person who has fond memories of growing up on dirt bikes, the person getting back on her bike, or the family that has just packed their

Selling to the

Adventure 34 April 2013 | Motorcycle & Powersports News

MotorcyclePowersportsNews.com 34

Photo by John Beck youngest off to college, people are looking for more reasons to ride off-road than they were five years ago. “From small 250s to big 1200s, the equipment differs, but the goal is the same: to get off the welltraveled routes, see remote places and enjoy the satisfaction of overcoming challenges,” says Edward Wilkinson, Klim’s dual sport / adventure product line manager.

There’s an allure to casting off the shackles of civilization, even if it’s just for a cruise across town or for a weekend in the woods. It’s your job as a dealer to fuel a customer’s imagination with a dream that he will believe is within reach. The beauty of it all is that adventure motorcycling is accessory-rich, more so than any other segment of the motorcycling market.

Photo by Helge Pedersen

Set

Building Community Building community is an important aspect of this niche. “Dealerships benefit from realizing the importance of adding value to the customer’s experience by giving them [sic] other reasons to visit the shop –– for workshops or guest speakers. Make it a community center, just like they put Starbucks in Barnes & Nobles,” says Adventure Motorcycle Magazine’s publisher Carl Parker. Informative workshops, tire changing seminars, guest lecturers and group rides all supply the education and inspiration for your customers to travel more on two wheels.

“Building a community is important because it’s the best advertising you can get,” says Michael Spencer, BMW Motorcycles of Ventura County’s general manager. His dealership engages its customers before, during and after the sale. They organize three rides a month, catering to three levels of riders. Once a quarter, Spencer himself takes out a permit, brings a group of riders out to the Hungry Valley SVRA and invites new riders to learn the basics of dual sport riding.

BMW Motorcycles of Ventura County also offers road support. One of the store’s perks is its pickup van for service appointments. The dealership also picks up customers who may have technical difficulties while riding on their own. Riders who join their innovative GS Venture Challenge Ride Series, earn patches for rides they participate in, as well as a dealership-branded jacket if they complete three easy rides, two medium rides and one hard ride. Riders in the series also receive a wider range of free ride support pickup. Best of all, if customers organize their own rides, the dealership will rent their pickup vehicle and staff for support.

“The way you approach a customer who’s interested in these bikes is by having a compelling story,” says Jim Hyde, owner of RawHyde

MotorcyclePowersportsNews.com 35

The good news for dealers is that there is a wide variety of aftermarket accessories for every make and model, with a wide variety of margins. Be forewarned, however, that the adventure set has many online resources and tends to think of its trips as expeditions. “If a customer isn’t happy with their purchase, it reflects back on the dealer. You might have made a good margin, but at the end of the day, if your customer isn’t satisfied with what they bought from you … that’s not looking after your customer,” says Kurt Forgét of Black Dog Cycle Works.

Photo and this month’s cover by Paul Guillien of Touratech Adventures, an official BMW training center.

“Very few dealers have that; they just sell motorcycles. So what you have to do first is build a community of riders at the dealership. You build a community, then you foster certain people and empower them to be leaders within that community.”

To that end, Jim Hyde has started the “World of Adventure” program. Hyde is building a community within the dealer community to promote adventure motorcycling. The program already consists of 60 companies and the idea is to create an explicit focus on this market segment, pool resources between all the companies and help promote each other. The program educates dealers and puts pieces in place for them to be successful.

Bob Honz of Gateway BMW in St. Louis offers a great bit of advice: “Don’t be a fake adventure rider if you’re not an adventure rider.” Parker agrees; “You can’t sell something you don’t understand.” Adventure Motorcycle Magazine welcomes dealers to contact them with questions regarding adventure motorcycles and will send a sample issue to anyone interested in promoting this exciting new market segment.

Show Them, Don’t Sell Them Even though it’s important to talk to your customers about adventure motorcycling, it’s also vital to inspire them. Just take a look at a Touratech catalog, and you’ll see why they sell so many accessories. It’s one part catalog and one part travelog, engaging customers on a variety of different levels.

Consider taking that same idea in-house. Set up a display with a fully kit-

ted adventure bike. Group all your adventure models together and, if your floor space allows it, perhaps even set up a tent and campsite. There are numerous videos about adventure motorcycling so have one looping on a monitor to get riders excited. Map displays, gear displays, magazines, books and valuable accessories enhance the shopping experience. This showroom display will also help your bottom line.

“Remember, it’s not about selling. It’s about enhancing a rider’s experience,” says Klim’s director of marketing John Summers. Part of building a community is education. Show customers the endless opportunities for fun and teach them something that will keep them safe and comfortable. Offer clinics, lead rides, get your sales force involved. It’s hard for a dealer not involved in this type of riding to break into the market, so encourage your sales force to go out and explore.

Function vs. Form Riders in the adventure set are looking for quality. Consumers in this segment are willing to pay more in order to get a quality product. But that product needs to perform as advertised, because in most cases, the parts and accessories will be used hard. It can also be a safety issue.

“This is a crowd that is usually going to go out and ride in an aggressive environment for a prolonged period of time,” says Eric Hougen, founder of Wolfman Motorcycle Luggage. “This is a crowd that will definitely go for function and quality, and they’ll pay for it. They don’t have a problem buying something that will work and last a long time.”

36 April 2013 | Motorcycle & Powersports News

Growing the Sport “It’s about the customer, not about the retailer,” says Ben Slavin, adventure traveler and MotorcycleMexico.com producer. “Get them excited, make them feel cool.” Paul Guillien, general manager of Touratech USA, does just that with the production of the “Backcountry Discovery Routes” videos. These videos help promote local tourism as well as adventure motorcycling while educating riders about the road less traveled.

One of the greatest threats to adventure motorcycling in the USA is the closure of public lands. Support all of your customers on these issues through education and encourage them to speak up.

“There’s growth everywhere in this segment, but what will make adventure motorcycles successful comes down to getting butts in saddles. Dealers carry the biggest burden to make this happen,” says Parker. t

Alisa Clickenger (MotoAdventureGal) is a 20-year road rider who’s toured almost every continent. She’s fallen in love with the roads less traveled and has racked up 70,000 off-road miles in the last five years — her longest trip was a seven-month solo trek through Mexico, Central and South America. Clickenger speaks to other women about touring alone or in a group and leads tours during her rolling classroom sessions, the “Women’s Empowerment Motorcycle Tour.” Through a combination of personal coaching, skill building and in-tour seminars, Clickenger supports and empowers other women to achieve their two-wheeled dreams. Email Clickenger at Alisa@MotoAdventureGal.com.

20W-50 Semi-Synthetic Motorcycle Oil

Drag Specialties This oil is specially formulated for V-Twin engines when ambient temperature is between 30 and 100 degrees Fahrenheit. Special additives provide excellent wear protection and durability while guarding against sludge buildup and oil breakdown. This oil meets all warranty performance criteria for Harley-Davidson engines without voiding new vehicle warranties. It’s sold in quart bottles and retails at $9.95.

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For More Info: www.dragspecialties.com

EXS Synthetic Ester 4T Engine Oil

Bel-Ray This product is a premium synthetic motor oil for all high performance 4-stroke engine applications. It features superior anti-wear properties for longer component life and controls sludge and varnish formation for cleaner engine operation. A high viscosity stability minimizes friction, while shear stability offers superior lubrication and film strength. This oil meets API SG/SH/SJ/SL/SM standards and is available in 1and 4-liter bottles, 60-liter kegs and 208-liter drums. The retail price is $18.60.

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For More Info: www.belray.com

38 April 2013 | Motorcycle & Powersports News

Pro 4

Silkolene Silkolene’s Pro 4 is an ester-based full synthetic engine oil produced using Electrosyntec Oil Technology that releases the hidden power inside the engine, offering longterm performance retention and improved protection against engine wear. The oil is specifically formulated for both street and offroad motorcycles and exceeds JASO-MA2 standards. It is available in 10W40 and 15W50 viscosities. The MSRP is $17.95 per liter, or $68.95 per four liters.

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For More Info: www.silkoleneusa.com

20W-50 Premium SemiSynthetic Oil

Dynacycle Dynacycle’s motor oil reduces friction and increases horsepower up to 35 percent over other brands, according to the company. The oil’s friction reducing formula builds a chemical bond to metal engine parts in order to protect against cold engine start-ups and extreme heat situations. It contains no graphite or silicone and is specifically engineered for air and liquid cooled 4stroke engines.

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For More Info: www.dynacycleoil.com

SAE 60 Synthetic Racing Oil

AMSOIL This oil's durable formula is designed to provide maximum horsepower without sacrificing protection. The product is heavily fortified with zinc and phosphorus anti-wear additives to provide additional protection against scuffing and wear in severe racing conditions. It's designed to provide outstanding protection in both hot and cold temperature extremes.

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For More Info: www.amsoil.com MotorcyclePowersportsNews.com 39

Pro Plus+ Full Synthetic Race Grade Oil

Maxima Racing Oils Maxima Pro Plus+ is an ester fortified, full synthetic 4T engine oil. Pro Plus+ is formulated to exceed JASO MA requirements for 4-cycle engines with integrated wet clutches. A balanced additive system minimizes engine deposits while protecting critical engine, transmission and clutch components. Pro Plus+ is designed to prolong wet clutch life and offers excellent feel.

It retails for $12.50 per liter.

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For More Info: www.maximausa.com

Full Synthetic Transmission Oil

Ultima Ultima Full Synthetic Transmission Oil is designed for use in all V-Twin transmissions where the clutch uses a separate lubricant. Full synthetic transmission oils are designed to provide smoother shifting and longer gear and bearing life than petroleum-based oils. It offers excellent chemical stability to prevent oil oxidation and corrosion, as well as shear stability to prevent metal-to-metal contact at high heat and speed.

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For More Info: www.ultima.com

Heavy Duty Platinum Sportster Transmission Lube

Spectro Oils This fully formulated synthetic transmission lubricant is engineered to work in all applications where the same oil lubricates the clutch, primary and transmission. It is designed to provide easier shifting, less gear noise and reduced heat for Sportsters. The lube has earned an API GL-1 rating and exceeds all known OEM warranty requirements.

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For More Info: www.spectro-oils.com

40 April 2013 | Motorcycle & Powersports News

0W20 Motor Oil

Red Line Synthetic Oil Red Line’s 0W20 provides excellent wear protection and friction reduction across a wide range of operating conditions. It helps maximize the performance of your rider’s vehicle by having a natural viscosity index (VI) that provides thicker oil film in bearings and cams. It is available in quarts and gallons for $11.49 and $45.95, respectively.

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For More Info: www.redlineoil.com

Essentials: Protective Gear ICON Stryker Vest Drag Specialties The ICON Stryker vest incorporates a low-profile design to fit under most jackets and hoodies. It features D30 intelligent foam, an injection-molded chest plate, CE-approved articulating back armor, integrated airflow channels, vented bio-foam and an air mesh chassis. A HydraDry moisture-wicking liner and fully adjustable waist and shoulder straps ensure a cool, comfortable ride. The Stryker is designed to pass U.S. military high-visibility specification requirements. It comes in sizes small through 3XL and retails at $150.

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For More Info: www.dragspecialties.com

Barricade Body Armor FLY Racing The Barricade Body Armor features a high impact molded chest with integrated hard plastic plates. Back and chest protection is removable to use with your rider’s favorite roost guard, and a built-in kidney belt offers additional protection. Other features include genuine YF brand shoulder and elbow protection and impact-resistant back protection. Adjustable straps allow for a customized fit, and all hard plastic protection is removable for cleaning. The MSRP is $139.95.

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For More Info: www.flyracing.com

Speedmaster 2.0 Back Protector Joe Rocket The Speedmaster 2.0 replaces typical rigid plastic with a polymeric-infused, high-density sculpted shell backed by comfortable, medium density, impactabsorbing foam padding. The result is CE’s highest level 2 rating. High velocity honeycomb mesh provides maximum heat and humidity dissipation, while a lightweight design and extreme adjustability add comfort. It comes in standard and large sizes and retails at $74.99.

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For More Info: www.joerocket.com

42 April 2013 | Motorcycle & Powersports News

Manis Back Protector Dainese This back protector’s innovative construction gives it three more degrees of freedom than others, allowing it to closely replicate the form of the human back in typical motorcycle racing positions. It is capable of extending or retracting by bending, following the movements of the torso. It is also able to bend and twist to follow the lateral bending movements of the body. The protector is characterized by maximum thermal comfort and a lightweight design. The MSRP is $219.95.

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For More Info: www.dainese.com

MotorcyclePowersportsNews.com 43

Driving Forward Drivetrain P&A Primary Chains

Drag Specialties Designed for Harley-Davidson motorcycles, these chains feature improved fatigued resistance, which means they’ll last longer and perform better. The chains are pre-loaded to reduce stretching, ensuring proper functionality. They feature high quality, raw materials and retail starting at $71.95.

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For More Info: www.dragspecialties.com

44 April 2013 | Motorcycle & Powersports News

Superlite RS7 Series 520 Conversion Steel Sprocket Kit

Drive Systems USA, Inc. This sprocket kit provides a 20 to 30 percent weight reduction over the stock chain kit, improving braking and acceleration while still maintaining durability and longevity. All kits include chains that are pre-cut to save installation time. Each kit includes a lightweight steel drilled front sprocket; a Superlite RS7 series CNC machined black steel rear sprocket; premium DID 520VX2, 520ERV3 or 520ZVMX ring sealed chains cut to length; and a rivet style master link. The retail price is $184.95.

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For More Info: www.superlitesprockets.com

RK Colored Chain Series

RK Chain RK Chains are now available in a variety of colors, allowing for a customized ride. Choose from gold, non-gold, red, blue, green, yellow, orange or black. They are available for 520MXZ4, XSO and GXW series chains. This product retails starting at $120.17.

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For More Info: www.rkexcelamerica.com

Open Belt Primary for Twin-Cams

Exile Cycles Exile Cycles offers a 3-inch open belt primary drive for both five- and six-speed Twin-Cam applications, both Softails and Dynas. The kit includes pulleys, a belt, diaphragm clutch, starter ring-gear, starter/bearing support plate and front pulley cover. The MSRP for satin finish is $1,999 and $2,149 for polished or wrinkle black powdercoat.

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For More Info: www.exilecycles.com

Clutch Arm Extension Kit

Daystar Products This kit greatly reduces clutch pull, which simultaneously reduces rider fatigue. It fits all 2009–2013 CRF 450R Honda motorcycles and works by enlarging the clutch engagement period.

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For More Info: www.daystarweb.com

520SSR Standard Sealed Ring Chain

Sunstar Sprockets & Chains This strong, long lasting O-ring chain is perfect for off-road bikes or ATVs of 400cc or less. It features a tensile strength of 7,700 pounds and is available in 100L for ATVs and 120L. It comes in the natural color option and uses a clip-type master link. The 100L option retails at $63.95, while the 120L version rings in at $76.95.

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For More Info: www.sunstar-mc.com

Sportsman Clutch

Bandit Machine Works Now available for all Harley-Davidson Big Twins (2007 and later) and Dynas (2006 and later), the Sportsman Clutch features 11 full size friction plates with segmented RQ lining, two more than stock.

The plates are more than twice as wide as the stock plates, and the total lining area is nearly 2.5 times that of stock. The pressure plate is machined from billet aluminum and features six coil springs for total adjustability and crisp lever feel. Two models are available for cable-operated clutches and OEM hydraulic operated clutches.

Two sets of springs are included, and the retail price is $499.95.

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For More Info: www.banditmachineworks.com

MotorcyclePowersportsNews.com 47

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

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909-350-2727 888-258-0369 48 April 2013 | Motorcycle & Powersports News

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Ad Index

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Adran Tie Downs ...................................................................39 Amrep Inc..............................................................................21

Arai Helmet Americas Inc. ....................................................23 Automatic Distributors..................................................Cover 3 Bendpak ................................................................................41

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MotorcyclePowersportsNews.com 49

Essentials

Defender 2000 Nelson-Rigg USA Made from a durable UV-treated Tri Max polyester with electronically taped seams, this 100 percent waterproof cover offers superior year-round protection from the elements. It features heat shield panels, a soft windshield liner, 24/7 ventilation, security grommets and an elastic hem. It's also packed inside a compression bag for ultimate compact storage. The Defender is available in four sizes to cover small short bikes to full dress touring models starting at $69.95.

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For More Info: www.nelsonrigg.com

Motorsport Shelter Speed-Way The Speed-Way Motorsport Shelter serves as a personal shelter for your rider's motorcycle, ATV or scooter. The retractable, waterproof cover is easy to use, keeps out weather, dust and debris, and features cross-ventilation to prevent any condensation from occurring inside the tent. Other features include builtin locking hardware for added security, an LED bright light for night access and a carrying case with handles for portability.

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For More Info: www.speedwayshelters.com

Series II Expedition Tent Redverz The Series II Expedition Tent shelters riders, motorbikes and gear out of the elements and under one roof. Expedition-grade ripstop nylon ground cloth, fly sheet and floors offer superior protection, while the double wall design of the sleeping bay helps eliminate condensation. The spacious, 6-foot high garage bay shelters motorcycles, while the sleeping area has enough room for two people. It comes in two colors (green and yellow) and retails at $449.

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For More Info: www.redverz.com

Asylum XP 900 Roll Cage Pro Armor Made of 1.75-inch DOM steel tubing, the Asylum cage integrates the vehicle's cage into the rear of the frame, strengthening it by preventing flex and fatigue. The Asylum roll cage comes in powdercoated semi-gloss black to match the Pro Armor RZR doors and is available with options such as a aluminum roof, fabric roof and a cooler rack.

The Asylum Cage system was subjected to the Roll Over Protective Structure (ROPS) test, passing and receiving the ANSI/ROHVA 1-2011 Certification.

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For More Info: www.proarmor.com

50 April 2013 | Motorcycle & Powersports News