300+ Dealers Strong!
RUMBLINGS FROM RUMBLEON OmniChannel Oversight?
DEALER PROFILE: Hellfighters USA, Ministering Through Motorcycles
INDUSTRYLEADERS|THEMOSTENGAGED DEALERSANDPROGRESSIVEBRANDS
NEWPRODUCTS|EDUCATIONANDNETWORKING NEEDEDTOGROWYOURBUSINESS
DEDICATEDPOWERSPORTSTRADEONLY EVENTALIGNEDWITHTHEBUYINGSEASON
INDUSTRY RESEARCH+
Don Musick On Avatar, The Sequel INDUSTRY RESEARCH+
Lenny Sims On The PWC Push Into Summer
INDUSTRY RESEARCH+
Jim Woodruff On NPA April AWP In Review
eDEALERNEWS
After A Deep Dive With PADI, Andy Leisner Is Back In The Saddle
CURRENTS+
CAKE Takes Bite Out Of The Big Apple, Tucker Draws
First Blood, Volcon Says “Charge It”
PRESS PASS+ Electrify Expo Charges Into 2023
NPDA DEALER NEWS
Dealer Association Celebrates Multiple Milestones
NPDA MEETING MINUTES
Did You Miss Your Meeting With The Bobs? I Was Told There Would Be Cake.
NPDA PARTNER PROFILE Cycle Trader/Statistical Surveys
MIC RIDE REPORT May Is Motorcycle Safety Awareness Month #seemotorcycles
PERSONNEL FILES+
Alex Baylon On Big Vs. Small Pros & Cons
ADVOCACY+
Don Amador On Being Back In The Saddle, Again!
CONFESSIONS OF A CUSTOMER
Eric Anderson On The 3 Things Customers Pay For
ADVOCACY+
Scot Harden On Eye Of The Tiger
GEAR+
Telling The Sea Foam Story At AIMExpo
VALE+ Ave Atque Vale Yoji Hamawaki
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This issue Brought To You By…
BACKFIRE
Lowell Anderson On The End Of Motorcycle Performance Parts
EDITORIAL
Robin Hartfiel Editor/Publisher
Bob Althoff World’s Luckiest Man
Gus Stewart Creative Director
Brenda Stiehl Production Manager
CONTRIBUTORS
Don Musick Genesys Technology Solutions
Dr. Paul Leinberger Denny+Leinberger Strategy
Eric Anderson Vroom Network
Jim Woodruff National Powersport Auctions
Mark Rodgers Performance Consulting
Lenny Sims NADA Appraisal Guides
Scot Harden AMA Hall Of Fame/Harden Offroad
Hector Cademartori Illustrations
William Douglas Little Unique Powersports
Charlie Williams Off Road Editor
Marq Smith Holeshot Motorsports, Canada
Alisa Clickenger Women’s Motorcycle Tours
Don Amador Quiet Warrior Racing
Joe Bonnello Joe B Photography
Uncle Paul Wunsch Love Cycles
The Anonymous Dealer
ADVERTISING
Robin Hartfiel Publisher (949) 489-4306 robinhartfiel@gmail.com
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Brenda Stiehl Production Manager brendastiehl@dealernews.com
John Murphy Publishing Consultant johnmurphydn@gmail.com
Dealernews Magazine 3250 Knoll Dr. Columbus, OH 43230 www.dealernews.com
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Remember that scene in the movie Star Wars: Return Of The Jedi when Luke Skywalker and Princess Leia pilot a pair of Imperial speeders to chase down scout troopers who might reveal the Rebel Alliance’s presence on Endor? They careen through the redwood forest at MACH 2. Words like “visceral” or “exciting” and fun come to mind.
I’ve always likened running a dealership during high season to be just like blasting through the redwoods — things coming at you fast and furious! For adrenaline junkies like most of us, it’s a pretty wonderful business to be in.
As Dealer Operators, we fly — over, under and around — every obstacle we face. That’s what we do. Just like Luke flying through the redwoods of Endor.
I can remember sitting around a table with our team months later when the snow was flying outside, and the business had slowed enough for us to be focused on our annual Dealernews Top 100 application. The meeting started with the question,
“So, what did we do this year?” Then there was this long pause. After flying along at breakneck pace, we suddenly couldn’t see the forest for the trees. What the hell did we do this year?!?
Year after year we would lament that we were so busy we didn’t take time to properly document what happened. How many events? How were the attendance figures? How many dollars were raised to support the myriad of good causes that we find ourselves in the middle of? Sometimes we lead; sometimes we follow, but dealers are always in the mix. Our riding community is big and generous… And we are blessed to be a part of it.
Imagine if we were individually and collectively able to carefully document the amazing work being done in dealerships, big and small, in cities and towns all across America? What a story to tell!
Speaking of amazing stories, one of them can be found in these pages. The story of Richard and Gina Headrick, the Bum Ministry and Hellfighters USA is amazing. Read it. Then read it again. Rebuilding lives one motorcycle at a time… This story epitomizes all that is good in our industry.
From the earliest days of motorcycling to today, countless acts of kindness, support and generosity have been the hallmarks of our sport and of our community. Thanks for all you do.
Now twist that speeder’s throttle and go move some iron... and change some lives!
Bob
Line 1, Malcolm Smith calling… I grabbed the wall-mounted phone in the studio and yelled “Yeah, whaddya want?”
“My name is Malcolm, I own a little motorcycle shop out in Riverside…” came the soft-spoken, polite response from the star of On Any Sunday. It really was Malcolm and I was mortified! The rest of the conversation was lost in a blur of stammering apologies, stumbling hero worship, self-recrimination and a huge helping of humble pie!
My first job as a “real” editor and I started it off by being rude to the dealer who introduced me (and an entire generation) to motorcycles! In my defense, I was having a bad day, it was pre-caller ID and my college roommate always called me claiming to be Mickey Thompson, Ivan Stewart or even Malcolm multiple times a week to remind me rent was due or we were out of beer (again). From that day on, I always tried to answer the phone courteously and professionally...
Maybe to an extreme as long after caller ID came about, I still to this day pick up the cell phone, take a breath, put the Chinese fire drill of a hectic Monday morning out of my mind and focus on the call with: “Dealernews, this is Robin. May I help you?” My old roommate still mocks this and my wife hates it when she calls to remind me the mortgage is due… and we are out of beer, again.
Slice of humble pie #1: Be polite, professional and focused when you pick up the phone. You never know who is on the other end of the line, especially when you are a landline Luddite like me.
For the longest time, the magazine’s tagline was “Dealernews, The Voice Of The Powersports Industry” in recognition of our receptionist. The magazine had been bought and sold by a media giant (again) and we moved from Larry Hester’s old building on Dyer Road to a fancy new tower in the flight path of John Wayne Airport. Instead of being the flagship, Dealernews was just one of about two dozen trade groups. Everything from medical books to the porn industry (for real, my office wall was shared with the AVN Show office) and the high flying Video Store magazine (remember video stores?) was the cock of the walk!
In the midst of all this media magnificence, Linda Desmarais was literally the voice of Advanstar from 1997 to 2014. She handled calls on ulcerating eyeballs for Ophthalmology Times to studio heads from Warner Brothers and Wicked for Video Store and the porn show, respectively… and she was good! She knew enough about everything that many times she would answer the question about the rate cards better than the salesmen themselves. She apparently had an auditory equivalent of a photographic memory and could route calls to the correct editors without the caller having to explain who they were over and over again.
She also knew more important things about every one of the magazines… the next time Malcolm Smith called Dealernews, she didn’t just take a message, she put it through to my voicemail. “Hi my name is Malcolm. I have a little motorcycle shop in Riverside and I had a question about the Dealernews Expo in Cincinnati…” I kept that message on my office phone for a decade!
When anyone, even photographer Joe Bonnello would walk into the lobby of the ivory towers in his notorious short shorts, she greeted them warmly (even Joe) and made sure they were taken care of correctly and immediately. After a visit or two she would already be dialing the right office as soon as anyone stepped out of the elevator (especially Joe Bonnello).
Humble pie slice #2: Your name may be on the front of the building, but it is the little people who really keep that name in lights!
When our corporate overseers decided that all magazines needed a cookie-cutter makeover to better reach readership, two things took place. 1) I was pissed and said Dealernews had been “reaching its readership” since 1965 and we had been putting the dealer on the cover since before the Top 100 program was launched (for which I was taken behind the corporate woodshed and flogged). 2) We changed our tagline to “The Voice Of The Powersports Industry” not because of the mandatory corporate edict, but as an homage to Linda… and my refusal to hear what the new guidelines were for better reaching readership.
In fact, Dealernews was of the first of the magazines in the group to recognize the importance of the role the receptionist played and she was proudly included on our masthead (same was true when I was at TrailerBoats and saw that the voice on the phone was higher on the masthead than the foremost PWC expert on the editorial team). This same should hold true for your dealership… the person who greets everyone walking through your front door and answers every phone call is the true voice of your dealership! In this era of the Internet, do you really want Chat AI to be the face of your operation?
Humble pie slice #3: no matter how high you climb on the masthead, it is the person answering the phone who is most important in the hierarchy.
Pick up that line promptly, courteously and professionally! Engage real people in a really meaningful way every single time… after all, the rent is due and we all need happy customers wanting to speak to us!
Gotta go, three slices of humble pie is about all I can handle in one sitting and caller ID on Line 1 says some guy named Bob Althoff from NPDA is calling me… probably another robo-dial phishing call from Chat AI, but you never know until you hear the voice on the line.
Former Editor-in-Chief and publisher of Dealernews circa 1990-2003, Robin returns to the magazine. In addition to having been instrumental in creating the Dealernews Top 100 program (still the industry’s ultimate accolade for a motorcycle dealership), Hartfiel has worked for most of the B2B publications in the Powersports arena. Prior to the trade side, he worked as a beat reporter for a local newspaper and was an editor of publications ranging from All About Beer to VW Trends.
NATIONWIDE BUYER BASE WITH THE LARGEST SELECTION OF PRE-OWNED POWERSPORTS
Mark Your Calendars
NPA 2023 JUNE AUCTION SCHEDULE
JUNE 2 SAN DIEGO
JUNE 7 CINCINNATI
JUNE 8 DENVER
JUNE 9 DALLAS
JUNE 14 PHILADELPHIA
JUNE 15 SACRAMENTO
JUNE 16 ATLANTA
JUNE 21 CINCINNATI
JUNE 22 LAKELAND
JUNE 23 DALLAS
Can’t believe I read this in AMD before Dealernews! This article doesn’t even begin to tell Jim’s story. One of the last remaining “good guys” in our industry. An avid racer into his 70s just for fun! Constantly developing parts for his drag bike, just for fun! When he wasn’t doing stuff just for fun, Jim built and ran one of the highest quality exhaust manufacturers in the industry.
How do you even begin to tell his story as one of the creators and driving forces behind Drag Specialties? You need to get Tom Rudd’s take on this — I’ve heard from Tom and it’s a good story. (And what about a story on Tom Rudd? Do you have to wait until these guys are gone?)
And Jim was one of the most humble, kindest, good-humored people I know.
And how lucky he was to marry Cheryl! Bright, energetic and a perfect match for Jim! When you stopped to talk to either of these two at a tradeshow, their attention was fully engaged. They cared not only about their business and customers but their employees as well. Many organizations could learn from them.
If you ever toured their facility, you’d know that Jim’s knowledge and dedication shined through. Get your act together and do this man justice by doing a “real” article on what he brought to this industry all the while remaining a true enthusiast.
Dan Stern Via BikernetThanks again for doing this article! I shared it with family and friends and have received great feedback! Everyone has loved it and feels it’s such a special tribute to my dad. I really appreciate you reaching out, as well as the person who connected us, Alex Baylon from MotorcycleIndustryJobs.com
Thank you again for a heartfelt tribute to my dad. He’d be so honored!
Jamie Williams Jim Rasmus’ Daughter Via InternetWe said goodbye to longtime Dealernews columnist and industry visionary Jim Rasmus last issue: issuu.com/dealernews/docs/issue_4_ april_cfc5c9f9477792/80
I’m doing a bit of research and have a question for you. Back in the day, DN released an issue which contained a listing of all U.S. distributors and I’m trying to find a recent listing to review. Is there such a thing anymore? Best regards,
David Kaiser, Street Brand Manager Renthal
Unfortunately there has not been a Dealernews Buyers Guide printed since December of 2014. The Internet pretty much eliminated the need for it for our annual 300-page compendiums. We have offered printed AIMExpo Show Directories for the past 5 years, but they are limited to the exhibitors.
BUYERS GUIDE?
Is it still available? Print issues?
Ron HigginsHiggins Energy/Higgins Powersports Barre, MA 01005
We are a digital-only publication except for our January 2023 issue which was printed and distributed at AIMExpo in Las Vegas. We have added you to our mailing list for the monthly digital issue and weekly eblasts.
MUSEUM MAP
I was on your page here: www.
dealernews.com/Home/post/theshow-mustn-t-go-on/2020-09-15 and I wanted to ask if you would consider including my automobile museums map on the page?
drivingtestsample.com/usautomobile-museums-map
The map includes all automotive related museums in the United States, and we listed out their address, phone number and website if that information was available.
Many of these museums put on events like open houses, auctions, swap meets, workshops, and other fun events and they are a great resource for car and motorsport enthusiasts. We wanted to put together a map so people can easily find a museum that is near their location.
Our website also has a large number of free driving sample tests including motorcycles, as well as road signs if you’re looking to brush up on the rules of the road.
Also, if you happen to know of a museum or organization that we don’t have on our map, please let me know!
Thanks,
Mark Johansson
Driving Test Sample
Via The Internet
Very cool concept. Dealernews used to compile a similar listing for the motorcycle industry as part of our annual Vintage Directory issues before the Internet made our print version superfluous. Many of the big museums like the collection at The Petersen and Jay Leno’s Garage certainly cross-over directly to Dealernews audience of motorcycle dealers, but it looks like some of the specialty ones are missing like Sturgis Motorcycle Museum & Hall Of Fame and the Glenn Curtiss Museum in New York… Also scratch the National Motorcycle Museum in Anamosa, Iowa, as of September.
Join in the conversation via e-mail: Editor@dealernews.com
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Follow along on: Dealernews.com
Tune into our YouTube channel: www.youtube.com/c/Dealernews50/featured
Recognizing the tremendous growth of the ADV market segment, the MIC Research & Statistics Department has added a new category to the MIC Retail Sales Report for the first time in decades. The latest RSR has divided the adventure and dual sport categories as specific types, underneath the general “dual” heading.
“While 2022 is pretty much flat compared to 2021 and 2020, it still is a significant increase from 2019,” explains Buckner Nesheim, MIC Director of Research & Statistics. The industry’s reference book has been updated and the data indicates 2022 sales of new motorcycles and scooters decreased by -3.5% over the previous year, while ATVs decreased -12.7%.
“When we compare 2022 to 2019 sales, off-highway is up +36%, on-highway is up +4%, and scooters are up +12%,” notes Nesheim. “Dual sport (ADV) is a tremendous growth story. Sales in this category have increased every year since 2016 and more dual sport motorcycles were sold in 2022 than in any other year since we started collecting data in this category in 1990.”
The just released Q1 numbers remain in positive territory. Driven by the ADV sector, off-highway motorcycle sales are up 6.5% through March. Dual purpose data demonstrates a bump of 7.9% compared to the same period in the prior year.
Detailed information by model type is available in the MIC Retail Sales Unit Summary. All members who have signed MIC Restricted Use Agreements may access the Flash Report and Retail Sales Unit Summary at the website: MIC.org
MIC is hiring, but don’t ask Jeeves or ping BING. Go straight to the source! In addition to an EV advocate in DC, The Motorcycle Industry Council is looking for a Membership Manager. This position is responsible for developing, creating and implanting strategic marketing/sales plans to communicate the association’s value to current and prospective members. Of particular note, recruiting dealer members is one of the key parts of the job.
This position secures new business and increases revenue by connecting with both current members and prospects in the powersports industry via various relationship building methods. The Membership manager recognizes new opportunities to create revenue streams to the MIC through sponsors/branding opportunities related to MIC member assets. The ideal candidate will bring leadership, enthusiasm, energy, and a collaborative spirit. Someone who enjoys working with and in the powersports industry is a plus!
Requirements:
• 5-7 years of proven progressive sales experience; 2 years of management experience
• Excellent written and verbal communications skills as well as analytical and interpersonal skills
• Ability to work independently as well as collaboratively to prioritize, plan, and carry out multiple projects simultaneously under deadlines
• Proficient with CRM software
• Ability to conduct oneself professionally at all times
• Excellent ability to create, build and maintain professional business relationships with contacts
• Ability to travel when necessary (less than 20%)
• Knowledge of and passion for the Powersports industry preferred.
The MIC provides a comprehensive benefits program to include PTO, Paid Holidays, medical, dental, vision, and retirement. To be considered for this position, please send an email with your full name and “Business Development Manager” Submission as the subject title to: Recruiting@mic.org
Led by a surge of sales in the U.S., Ducati delivered a new record of 14,725 motorcycles to passionate Ducatisti in the first quarter of 2023. This marked a 9% increase compared to the same period in 2022, which was the best year ever for Ducati in terms of deliveries, revenue and profitability. Guess our February cover dealer Bob Henig was onto something when he became the newest Ducati dealer in the nation?
“After closing our best year ever in 2022, we began 2023 with strong results that confirm a company strategy that is paying off with a great outcome,” claims Ducati CEO Claudio Domenicali. “Based on these positive numbers, we continue
working to achieve the best possible result, with the main goal to satisfy all passionate Ducatisti in our beautiful community.”
Confirming Claudio’s statement, domestic distribution of 2,717 Ducati’s in Italy (up 7% year-over-year). The United States, remains Ducati’s second-largest market globally, saw 1,677 of the Borgo Panigale product bikes delivered — up 21% in the first quarter of 2023. Germany, in third position, also grew 21% compared to the same period in 2022 with 1,666 motorcycles delivered.
The Multistrada V4 in all its versions is still the most successful motorcycle in the Ducati range with 2,668 models delivered worldwide in Q1, followed by Monster with 2,005 units. The third most appreciated model is the new DesertX with 1,442 deliveries, which demonstrates Ducati’s commitment to enlarging its product range and entering new market segments.
“The deliveries achieved in the first quarter of 2023 set a new record for Ducati, with growth in all main markets,” adds Francesco Milicia, VP Global Sales and After Sales Ducati: “Our trusted dealers in the world play an important part when it comes to achieving these results… I want to thank them for their commitment to the brand along with our valuable Ducatisti.”
Ducati now has more than 800 dealers in 90 countries, which Milicia says is just the beginning. In fact, the Bolognabased manufacturer plans to open 55 new dealers in 2023 (including Bob’s Motorcycles). This calendar year also saw the first Audi Ducati Retail integration dealership open in Zurich, Switzerland, in March.
Continued on page 14
Noting the time was right, Boneyard Harley-Davidson coowners Marc Ingwersen and Jerry Carrillo sold the dealership to current GM Bobbie Krull and new partner Steven Towers. “Jerry and I had great success in Winterville, North Carolina, but felt it was the right time to focus on our Ohio dealerships,” says Ingwersen. “We decided to hire the industry experts and professionals, George Chaconas and Juan Pardo of Performance Brokerage Services, to help find the right buyer who would continue the great success we had.”
“I want to thank Marc and Jerry for trusting my partner Juan and I in helping facilitate the sale of Boneyard Harley-Davidson and finding a passionate and qualified first-time buyer, Steven Towers, who will be partnering with the current GM, Bobbie Krull,” says Chaconas. “We wish Steven and Bobbie great success and look forward to working with Marc and Jerry in the future.”
Although this is Towers first time in the saddle for a powersports dealership, it is by no means his first rodeo as he has over a decade of experience as a franchisee for automotive-related retail giants. From 2013 to 2022, Towers managed a network of more than 20 Midas locations. In 2022, he divested his stores to Legacy Auto Group of Texas. He then joined Big O Tires as a franchisee in 2021 and has since acquired 9 Big O Tires locations across the Midwest.
“Juan Pardo at Performance Brokerage Services introduced me to several Harley-Davidson dealership opportunities, but Boneyard Harley-Davidson was the right fit to be my first acquisition,” Towers remarked. “Juan was instrumental not only in working with Marc and Jerry, but also with Harley-Davidson Motor Company in getting the deal done. The unique process involved in getting approved as a Harley-Davidson dealer was something I couldn’t have done or been prepared for without the help of Juan and George.”
The dealership will remain at its current location at 2300 Elaine’s Way in Winterville, North Carolina.
“Work Hard, Play Harder” is the motto of Bobcat of Brandon in Manitoba, Canada — a sentiment that epitomizes the OPE/ UTV OEM’s 2023 Dealer Leadership Group. The Top 16 Bobcat retailers were honored at a dealer reception held in conjunction with CONEXPO-CON/AGG 2023 trade show in Las Vegas. The highest-performing dealers in North America were determined according to the company’s Dealer Performance Review.
“As a result of their excellent performance and demonstrated commitment to exceeding customer expectations, these dealers are being honored for their outstanding work,” said Jeremy Holck, VP of sales for Doosan Bobcat North America. “Year-in and year-out, dealers throughout our entire network continue to lead our industry and grow the Bobcat brand. I am pleased we can recognize these 16 businesses that have performed at the highest level in all areas.”
The Bobcat Dealer Performance Review is not only used to help dealers compare their performance against their peers, it identifies the top performing dealers across Bobcat’s North American network, which comprises 300+ dealerships in the United States and Canada. As members of the Dealer Leadership Group, these dealerships function as the “voice” for the dealer network and meet with Bobcat senior leadership throughout the year to provide insights and feedback. To recognize and celebrate the achievements of this select group, Bobcat will also honor members at a dealer incentive trip to Iceland later this year.
Bobcat continues to expand its dealer network in North America. As part of the Bobcat dealer partner program, dealerships are provided with development opportunities, ongoing training and educational and marketing resources to help position their customers, employees and businesses for long-term success. To learn more about the Bobcat Company dealer network, click here: www.bobcat.com/dealer
Back in 2014 ADP Lightspeed became part of a bigger entity, changing its name to “CDK Global Recreation” as the Dealer Services portion of ADP spun off into a new corporation. “There’s enough uniqueness to the market, customers and products that the decision was made to spin off the Dealer
Services division,” claimed Greg Smith, VP/general manager of CDK Global Recreation at the time. However the honeymoon is over and Lightspeed is going back to a stand-alone entity.
“We are thrilled to share with you that going forward, the Lightspeed DMS business unit of CDK Global will operate as a standalone business: Lightspeed DMS LLC,” explains newly promoted President Kris Denos. “This new structure confirms Brookfield Business Partner’s confidence in the Lightspeed business unit and elevates our position within its portfolio,” (see next story). “We have set ambitious growth goals and are making changes to support our strategic model for innovation.”
Supporting this strategic realignment, Denos has been promoted to president of Lightspeed DMS LLC. In his nearly 30 years at Lightspeed, he has held leadership positions across customer service, quality assurance, product management, training and implementation and research & development. His vast experience makes him the ideal choice for his new role.
“Kris knows the challenges and frustrations you face,” says Woods Cycle Center Strategic Advisor and Texas Motorcycle Dealer Association and National Powersports Dealer Association Board Member Mark Sheffield. “His first position at Lightspeed was in customer service, where he answered support calls from dealers. He truly understands that innovations in product functionality and fast resolutions to technical issues are what keep your business moving forward and growing.”
Industry veteran Scott Greenwood is now Eastern Sales Director for iconic Italian motorcycle marque Moto Morini. “We are certainly excited to welcome Scott to the Moto Morini family,” says COO Chris McGee, “It is our goal at Moto Morini to build strong partnerships with our dealers. With Scott’s great connections with dealers across the East, we will be able to connect with and service more dealers with a personal touch.” Greenwood’s motorcycle industry career began in 1991 at the parts counter of his local dealer. He expanded his dealership experience by working in all departments at several different dealerships over the years. Greenwood has also held a Sales Director position with an OEM, further strengthening his connection with dealers. “Scott’s combined knowledge of dealership inner workings and OEM experience makes him the ideal choice to lead Moto Morini expansion in the Eastern states,” according to McGee. “I am very happy to join the Moto Morini team,” adds accomplished AMA, Formula USA, CCS and international roadracer Greenwood. “The motorcycles are great, from the style, design, fit and finish, the overall high quality as well as the exceptional price points. Dealers will want to offer Moto Morini Motorcycles in their stores and will find the ease of doing business with our brand is second to none.” From their new HQ in Irvine, California, Moto Morini now supplies dealers nationwide with world class support. Become a dealer today by contacting Scott Greenwood at scottg@ MotoMorini.com or calling 949-620-5025. Learn more and see the full line of highquality, high-performance Moto Morini motorcycles at: MotoMoriniUSA.com
After four years as Arrowhead Engineered Products’ Chief Executive Officer, John Mosunic is now selfemployed, according to his LinkedIn page. He was named president and CEO of Arrowhead on April 1, 2020 and they subsequently engineered the acquisition of All Balls Racing Group, Western Power Sports and most recently Bihr (a big distributor in Europe). In addition to powersports, Arrowhead holdings include Red Hawk golf, Stens the parts company for landscaping & lawn care industry, Tiger Lights and a host of other brands in adjacent industries. Arrowhead says they are: “North America’s largest aftermarket supplier of non-discretionary parts.” After 20 years of executive management experience as CEO, COO and CFO working at OmniParts (a Nissan Company), InterAmerican Motor Corporation, FleetPride, General Parts International (CARQUEST) and WorldPac, Mosunic joined AEP in 2019 as the COO. “We thank John Mosunic for his leadership and dedication to the organization during his tenure,” stated the corporate communications’ announcement. “We wish him all the best in his future endeavors.”
John Mosunic. Transitioning from C-Suite position with Swagelock and most recently Ohio Transmission Corporation (OTC), “Bill has led several organizations to unprecedented growth,” states Genstar Capital Group, the parent company to Arrowhead and OTC. “He is a proven leader with a track record of driving results through innovation, strong business insights and financial discipline.” Canady claims, “I’m pleased to have been chosen to lead Arrowhead, a company with an incredible workforce and loyal customer base. With the confidence of the board and in partnership with the leadership team, we will improve our business performance, continue to take market share and deliver long-term value for all our shareholders. I’m confident that our best days are ahead.” Speaking of days, “Over the next 100 days, Bill will focus on improving revenue, EBITDA and business performance. The recently announced Global Operating Model is paused as we concentrate on executing the day-to-day basics.” Day #1 Canady named Adam McMahon as CFO. Current CFO Jim Buckelman will stay onboard for six months to ensure a smooth transition.
Also lost in the shuffle was Chera Gibb’s position as Chief Marketing Officer for Arrowhead Engineered Products. She joined AEP from BRP where she had been manager of Global Retail Operations & Dealer Marketing and Textron Specialized Vehicles’ director of Marketing & Strategy — Parts & Accessories. Before that, Gibb had served in a number of C-suite positions and had recently relocated to Boise to focus on FLY, HardDrive and WPS.
Continued from page 16
From eBikes to Baggers ? One of motorcycling’s fastest-growing genres of racing took a step forward by naming longtime entertainment and festival executive Lon Nordbye as its VP of Commercial Development. “This year is all about improving BRL’s scale and quality and I’m confident Lon has the experience, skill sets and relationships to do just that,” said Rob Buydos , BRL’s Founder & President. “We are bringing together everyone from legacy V-Twin brands and hungry aftermarket challengers to give racing fans a festival style, motorcycling racing experience that’s fresh and unique,” Buydos adds, noting the next step is to expand the festival aspect, which is where Nordbye comes in. “BRL is a mindset, a culture and an experience,” noted Nordbye. “My sole focus and responsibilities are to make it more accessible to a broader cross-section of platforms, brands, and fans while staying true to the roots of those who created it.” Nordbye has most recently held high-profile marketing and business development roles for two of America’s leading motorcycle festivals — the Sturgis Buffalo Chip and Electrify Expo . Both events experienced tremendous success with unprecedented growth in partnerships, marketing outreach as well as attendance numbers. See more here: baggerracingleague.com
Auction action! The leading provider of powersports remarketing services also announced Brad Maxon has been promoted to General Operations Manager for NPA San Diego. “Brad’s extensive experience and knowledge of NPA’s operational processes and procedures made him a perfect fit for General Operations Manager,” notes Jeff Kinney, VP of Operations. “He has shown his dedication to NPA and the operations teams from not only San Diego but all locations, and we are excited to have him in this new role.” This is not his first rodeo — Maxon has been with NPA for more than eight years overseeing different departments during his tenure. A rider since 1983, Maxon started his powersports career over 25 years ago, working in dealerships throughout San Diego. Before joining NPA, he worked in dealership sales, service, parts and finance roles. Maxon has been NPA’s Reconditioning & Service Manager since his start in July 2014. “Being able to build a career around what you love to do is why I chose this path,” adds Maxon. “Most people in the industry share the same passion, so I am always in good company. I am looking forward to being a key part of providing the best service to our clients and being a good team leader.” When Maxon is not overseeing an operation, he shares his love of riding and racing with his three children, who ride together regularly as a family.
National Powersport Auctions has also hired Brian Wood as the Territory Sales Manager for the Southeast territory. NPA’s TSM is now handling Alabama, Georgia and Mississippi. Wood will be working closely with Regional Sales Manager, Dusty Krepp, and other territory sales managers to get up to speed. In fact, you may have already seen him in some of your dealerships. “We are excited to have Brian on board and for him to maintain current relationships and begin building new ones in this territory,” says Mike Murray, Vice President of Sales. “Adding Brian’s knowledge to the team helps dealers see the additional possibilities with NPA for their preowned inventory.” Wood has been in the powersports industry for more than 30 years, starting as a parts associate while in high school. His sales career started when he joined the sales team at Tucker Rocky in the early 90s in Kansas City. When an opportunity came to move to warmer weather in 1998, he joined Parts Unlimited as a rep in Florida, where he worked until 2017. Since then, Wood has been with KYMCO USA as a District Sales Manager covering Alabama, Florida, Georgia and Mississippi. Along the way he has raced everything from personal watercraft to performance sportbikes. He has competed in both motocross and GNCC off-road events in past years and still tries to attend as many races and rallies as possible. “My passion and love for the powersports industry have led me here, and NPA allows me to experience a new and exciting segment of the industry that furthers my career,” states Woods. “I am excited to be working with dealers to help grow and expand their businesses.”
By Marianne Todd
Towering 140 feet over Interstate 59 in Laurel, Mississippi at Exit 95C, is a larger-than-life sign stating its owner’s signature mission: Hellfighters USA. The unmistakable sign cannot be missed! It draws in thousands of visitors each month to the popular independent motorcycle dealership in this small Mississippi city.
“A lot of people mistake it for hell raisers, but we’re actually fighting hell,” explains Eddie Parker, general manager of Hellfighters USA Motorcycle Shop. The 83,000-square-foot “dealership” housing everything from pre-owned Harleys to Jeeps, guns, a museum, home decor and even a chapel was birthed from humble beginnings.
The chapel is a place where people can pray, but the dealership has also held its share of weddings there, Parker adds. Situated among the antiquated buildings of a restored downtown, Hellfighters, owned by its parent, The Headrick Companies (makers of Love’s gas station signs), grew from a small shop with a mechanic or two into the bustling center it is now. To do that, Headrick also grew its own employee base from scratch.
The original shop, which still sits across the street from its current location at 325 South Magnolia Street, sprung from another Headrick venture, Mission at the Cross, a men’s faith-based substance abuse recovery center.
“A lot of us guys that work at Hellfighters today came through Mission at the Cross… I am one of them,” Parker added. “I was on alcohol and drugs, and I got delivered to Mission at the Cross on August 20, 2017. I checked into the mission and completed the program in six months. It’s now a 12-month program, but we offer vocational training. Some of our guys learn to work on motorcycles, some work on Jeeps. Some learn how to sell them. Some learn how to do Internet stuff or process inventory. Some learn how to become service writers.”
Founded by visionaries and missionaries Richard and Gina Headrick, the couple was credited with “restoring more men than Harleys,” by the local newspaper, The LaurelLeader Call. Although Richard Headrick died in 2020, his widow carries on the mission work. She has expanded Hellfighters to include not just used motorcycles and 4x4s, but a planned full-service restaurant and putt-putt golf course set to open this summer. Visitors can easily make a day of shopping in this gargantuan building, so don’t forget the tennis shoes.
The original shop, next to a retro-styled burger and ice cream joint, was created with a modest 10,000 square feet after the Headricks and their longtime employee, Director of Operations Mike Shirley, began looking for vocational work for the souls they housed at their mission.
“That was in 2011. They needed vocational stuff for the guys to learn how to do,” Parker said. “Well, Mike had always been into motorcycles and so had Richard, and somehow through it all, they ended up with the same dream and opened the shop as a way for the guys to get some vocational tech training.”
Since the budget wouldn’t accommodate brand-new inventory, Shirley and the Headricks taught their mission men to refurbish bikes that were headed for the junkyard.
“Gina named them ‘Born Again Motorcycles,” Parker said. “We’d find wrecked motorcycles, a lot of them totaled without frame damage, and we’d rebuild them. Then we had more bikes than actual mechanics, so we’d strip them down to the bare frame and figure out what parts were good and which ones were bad. Then we’d reassemble these motorcycles and they became, “Born Again HarleyDavidson Motorcycles.”
It wasn’t long before the idea caught on with motorcycle enthusiasts.
“We did quite well. We even had people that would preorder some of these motorcycles,” Parker said. “They could pick what color they wanted, and we would custom build them. It brought in a lot of customers that wouldn’t buy a motorcycle with some kind of damage.”
“The ministry is the reason why Hellfighters exists,” Parker said. “Our recovery center is free. It’s one of the last free ones in America. When a guy checks in with us, we take every single responsibility he has. We feed and clothe them and help them with their teeth, medical, court dates and transportation.”
Parker said the program offers apartments for those who graduate. They’re able to service 22 men in the recovery program at any given time, but have had as many as 40 at once at varying levels of recovery.
“We’ve checked in over 1,400 men at Mission at the Cross. Not all have graduated, but every single one has heard about Jesus Christ,” Parker said. “The men we meet are men just like me. They’re down on their luck, have lost all hope, and are at the end of their rope, at what we call rock bottom. We help build them into productive members of society. We want all our men to be tax-paying, tithing citizens.”
Sean Rubin serves as the Hellfighters service manager and the vice president of the Hellfighters Ministry. He came to Hellfighters in 2012, strung out on drugs and about done with life. “The Lord changed my life,” Rubin said. “He made an addict into a father again. I was a pipefitter and a millwright by trade, and when I came here I fell in love with this ministry and working on motorcycles. I became Service Manager three years ago.”
Continued on page 22
As Hellfighters grew and became a household name, the dealership outgrew the building, so in 2019, the company purchased a defunct garment store next door and moved in. Overnight, their service department expanded from 2,000 square feet to 15,000 sq./ft., and their workforce of 10 expanded to include 20. The $4 million remodeling and renovation project included purchasing a 6.5-acre lot for further expansion. The Headricks opted to keep and polish the original hardwood floors that run the length of the building.
Continued from page 21
Rubin watched as the old shop’s three mechanic stalls evolved to 12, where mechanics (all who went through the Mission’s recovery program) now work on Jeeps, motorcycles, trucks, and “pretty much anything that comes in here. If we can’t do it, we’ll figure it out. We help with a lot of breakdowns, people from out of state. People who need a tire changed. We try not to work on metric bikes, but we will service them and change a tire if it means getting someone back on the road. We try not to leave anyone stranded, but if your bike is in a million pieces we might send you down the road.”
Parker said while the expanded dealership brings in a good share of dollars, at the end of the day, it’s not about the money. “I came to this mission after spending a lot of years in prison. I was homeless for a lot of years. During this time, I’ve learned how to become a man and to stand on my own two feet and how to keep going through adversity,” he said. “I’ve learned to become a productive member of society and to help other men who are just like I was. We’re sewn into a ministry here. It’s not just about a 9 to 5 job. Here, you get a brand new life in Christ.”
On any given day, about 160 “Born Again Harley-Davidsons” grace the showroom floor, while another 25 bikes are being repaired in the back. Rubin manages roughly 10 mechanics, training several who start with oil changes and small repairs and work their way into full-fledged mechanic positions.
Many customers are locals “because they know where their money is going,” but the dealership also attracts its share of out-of-towners, being the only dealership to offer myTops electric handmade convertible tops for Jeeps with full installation services, he said.
The dealership keeps about eight to 10 used “Rhino” Jeeps in stock that have been fitted with various custom amenities such as oversized tires, bumpers and lifts. Some carry unique paint jobs, like American flags and other patriotic regalia.
“We named them Rhino because Richard Headrick is the Rhino man,” Parker said. “That’s been his name since he was young. Rhinos, you know they never back up, they just go straight forward. He’s still with us in spirit. His signature is all over this place.”
Hellfighters’ profits support not only The Mission at the Cross but also the 28 other missions in 14 states and Belize. Richard Headrick’s book, America’s Churches Through the Eyes of a Bum, is also available on store shelves. The book chronicles how he and Gina spent their weekends, starting in 1998, dressed as people experiencing homelessness, hanging around the lawns, parking lots, cemeteries, and doorsteps of American churches before services were to begin.
Rejected by some church-goers on Sunday mornings, and loved and cared for by others, the parishioners soon found Richard and Gina were guests of the church, there to give the day’s sermon: how God’s Golden Rule is no longer being applied to the down and out that show up on the doorsteps of American churches. The act delivered the ultimate “Do Unto Others” lesson, Parker said.
Aside from the restaurant, gun shop, and chapel, Hellfighters also boasts its own T-shirt printing shop, a museum and hosts an enormous Swap Meet, offering a massive collection of used parts —everything from panniers and handlebars to exhausts — merchandise collected from dealers nationwide. The Swap Meet is a virtual store within a store, encompassing several thousand feet of used merch. “If it comes on a motorcycle, we resell it,” Parker sums it up succinctly.
The dealership’s next ventures are to continue to work on its full-service restaurant, whose construction halted during the COVID-19 outbreak and to create a putt-putt playground for visitors. They recently demolished an old gas station in front of the original shop to make room for Rhino’s Goofy Golf, slated to go into operation sometime next year, Parker said.
“It’ll be bigger and better than you’ve ever seen because the Headricks do everything bigger and better,” concludes Parker. “They don’t know how to do anything halfway.”
Back in 1998, Richard Headrick, founder of Hellfighters International, and his wife, Gina, launched “the Bum Ministry.” They would show up at churches dressed as homeless people, sleep outside the church on Saturday night and be there on Sunday morning when the church-goers arrive. When the church service began, they would wander inside the church and look around for a seat, often sitting on the floor where church members would notice them. At some point during the sermon, the pastor would recognize Richard who would go to the pulpit and preach a message on Christian kindness and reveal the fact that they are there at the invitation of the pastor to check the hearts of the congregation toward those less fortunate.
In 2005, regardless of what state they were in or what church denomination they were visiting, church members would share with Richard and Gina their burning desire to see some sort of shelter to assist those coming out of prison in their attempt to merge back into society or those who had lost their homes, families and jobs due to drugs and alcohol. It seemed really odd that every week, whether over a meal with a church member or during a brief conversation after a church service with someone they had never met before, the same subject kept coming up. Since Richard and Gina didn’t believe in coincidence, they knew God was up to something.
After much prayer and seeking the Lord on exactly what it was He wanted them to do, God gave Richard a vision for a ministry named “Mission At The Cross”—a homeless shelter with a huge, lighted cross standing next to the building. The vision God gave to Richard was to build one hundred Mission At The Cross shelters all over America. Hellfighter members and other volunteers would man each Mission At The Cross and minister to the needy 24/7/365.
In 2007, the Lord provided the absolute perfect location for the very first Mission At the Cross, right beside Interstate 90 in Sturgis, South Dakota. Mission At The Cross-Sturgis is open 24 hours a day during the Rally. At the same time that Richard
and Gina were renovating the Mission At The Cross building in South Dakota in 2007, they started on a second Mission At The Cross in their hometown of Laurel, Mississippi. The future mission was a three-story, 18,000 sq./ft. monstrosity, being used as a storage warehouse that had been ready for a demolition ball since Hurricane Katrina took off its roof in August of 2005.
To say the least, the building was in rough shape and on the verge of being condemned by city inspectors. Immediately, God began to provide in ways that still amaze us. He sent laborers from near and far with the exact skill sets that were needed on the very day they arrived. This happened on many occasions. God provided a wonderfully talented man who is a fellow believer to be the construction boss and God provided wood, tile, fixtures, appliances, furniture… everything! Right on time and just when it was needed. On December 27, 2008, after two years of nonstop work, a dedication service was held in the Mission At The Cross chapel.
The Hellfighters Motorcycle Shop was opened next door, with all proceeds used to fund operations at Mission At The Cross. In addition, a motorcycle repair shop was established to teach Mission residents repair skills. By 2011 the Hellfighter unit in Batesville, Arkansas established a small Mission At The Cross operation of its own. In 2012 Sturgis, South Dakota and Laurel, Mississippi and Batesville, Arkansas were joined by Missions in Richmond, Indiana; Belmont, North Carolina and Chipley, Florida, with plans to start facilities in San Bernardino and Taft, California.
Even though Richard passed away, his ministry continues. In the past decade, Mission At The Cross has expanded to 28 other missions in 14 states and Belize. Well on its way to the original vision of 100 Missions, changing lives one motorcycle at a time. Learn more here:
missionatthecross.com
After three years of unprecedented growth in the powersports industry, are we finally seeing the growth stop? I don’t think anyone can accurately predict what may or may not happen in the coming year but we can be proactive to ensure we see success this year no matter what. With rising inventory levels and a slowdown in consumer demand, we need to be fully aware of the environment we are entering this year.
In the last 2-3 months, I’ve seen that inventory supply in some dealerships is getting back to pre-pandemic levels. This is mostly due in part to rising interest rates, decreasing consumer confidence, rising cost of living due to massive inflation and the fact that people are starting to go back on vacations and travel more. During the pandemic the whole world was stuck inside and wanted a way out that they could enjoy with friends and still feel like they were participating in “social distancing”. Luckily for us we were a part of the outdoor explosion and we all benefited from it.
Pre-pandemic inventory levels were outrageous and most dealers were paying more in flooring charges than ever before. The surge of sales came as a big relief to dealers that were bursting at the seams with inventory. Hopefully, the manufacturers won’t participate in a big you know what
contest to see who can outproduce who and shove inventory on the dealer’s floor. It would be beneficial for them to keep inventory a little short of consumer demand so we can keep prices up and keep all our employees on payroll and maintain healthy profit margins to ensure longevity of the dealership.
If you’re like me and don’t want to rely on what the manufacturers do, there is one thing you can guarantee that will keep your dealership ahead of the curve. That is focusing on salesmanship! Follow up in the sales department and be aware of competitive pricing on certain models and brands.
Let’s face it, we are no longer “shooting fish in a barrel” — there aren’t bidding wars on models in stock any more. You can’t just put a high price in front of people and expect them to say yes or else “someone else will buy it before the day’s out” —Now more than ever we must remember what it’s like to be a salesperson and what works in a sales department.
The first part is purely a shift in mindset, just being aware that what has worked the last few years will not continue to work and being open to change. The second part is knowing that the gold is in the follow up. On average, 80% of sales takes 8-12 contacts with a customer to close the deal and most salespeople only follow up 1-2 times. This fact alone should show you the amount of business that could be gained (or lost) with effective follow up.
The third part is being aware of competitive pricing in the marketplace on certain units or even brands. Speaking from experience, you can lose a lot of customers by being thousands of dollars above what someone can buy something someplace else. I’m not advocating for giving stuff away or being the cheapest in town, but I am advocating for being aware and being competitive to keep the customer coming to your store.
On those models that are being price shopped hard (Polaris RZRs... hint, hint) you must focus on selling accessories and back-end F&I items like extended warranties, theft, gap, and GPS to make up for lost front end profit. It’s more important to keep a good customer and their circle of influence than it is to lose them over price.
So, how do we do this? Here are four things you can do now to make sure you stay ahead of the curve and remain competitive in the marketplace:
1- Start implementing some sort of sales training. Whether it’s done in house by the sales manager or done on a sales training platform. There are several different options out there from Grant Cardone’s Cardone University, Garage Composite and Tom O Connor Sales Academy. It doesn’t matter which one you do, just do one of them. This will keep your sales manager and your sales staff engaged, growing and continually sharpening their sales ability.
2- Follow up, follow up, follow up. The gold is in the follow up. Some dealers have a BDC department, some swap leads between salespeople, some have processes in place to ensure the salespeople are contacting the lead a certain number of times. Each of these are effective; it’s not important which one you do, just that you’re implementing something to make sure the customer is being contacted enough times to ensure your dealership gets the sale (8-12 times minimum).
3- Sales managers need to be more engaged in the sales process and processes need to be set up for the manager to contact as many hot leads as possible to ensure deals get closed. I have seen this tactic work better than almost anything. A salesperson gets a customer on the hook and the manager comes in with his authority and MAKES the deal happen. Sometimes the customer just wants to feel important and all it takes is that touch from the manager. As a GM, I have stepped in on a lot of deals just to show the customer we care that much that the GM would take time out of his day and walk in a sales persons office and help close a deal. As a manager, being engaged in the sales process is extremely important.
4- Open mindedness from the owner, GM, SM and sales staff that any success you may or may not see in the future is determined by your ability to adapt to an ever-changing marketplace. Becoming complacent and believing what’s been working will continue to work has been the death of many businesses and sales departments. If there’s one thing you can count on, it’s that things are going to change. Being open to change and putting egos aside will prove to be one of the biggest benefactors in your business.
I hope this has been helpful and opened some eyes as not so much what to expect but what can be done in the face of uncertainty. Adaptability has been the key to success in our businesses and given us the ability to determine our own outcomes. You can’t foresee the future but you sure as heck can do everything in your control to be proactive to ensure you stay ahead of the curve. These four things worked pre pandemic, during the pandemic and will continue to work post pandemic.
If you have any questions or want to chat more about implementing these things in your dealership, please feel free to reach out to me. I’d love the opportunity to get to know you and your dealership and help achieve the goals you have for yourself.
We help Powersports Dealers drive traffic into the dealership, leads into the CRM and ultimately help close more deals. Our digital marketing strategies are proven to increase dealership sales. Our main focus is driving clients to the dealership’s website as well as in the front door.
www.motorsportsmarketinggrp.com
Iwrote my first book!” Dealer Principal and longtime GM at Great Western Outdoor in Marion, North Carolina, Brandon Prokupek was not satisfied with the school of hard knocks approach to running a dealership, so he decided to create a Cliff’s Notes for aspiring powersports dealers. Navigating The Powersports Industry is a guide for dealers. “This book breaks down the three fundamental things I have used over the last 15 years to help build and grow dealerships.”
Along the way, he also launched a consulting firm, specifically for dealers. “As a General Manager at a dealership, I found myself partnering with marketing firms that just did not understand the needs of the powersports dealership or how to integrate properly into the sales department to actually make the marketing effective,” he notes. “It was because of this that MMG (Motorsports Marketing Group) was founded. We’ve spent the last 4 years dialing in the most effective marketing strategies for the powersports dealer. As a General Manager or owner, I know how many things are on your plate day in and day out between your employees, customers, processes, returns, bank accounts, managing inventory, hiring/firing, advertising, bookkeeping, relationships with manufactures and reps, as well as the hundreds of other things that pop up in a day.”
Back to the book: “I started in the powersports industry in 2008 at which time the statistic was that 70% of all dealers went out of business between 2008-2011. This is a staggering statistic but an all too real one,” concludes Prokupek. “That being said, with the uncertainty of the economy right now, it’s important that dealers are doing everything possible to retain current customers, reach new ones and deliver an experience that keeps customers coming into the dealership.”
Check it out on Amazon: lnkd.in/eQwT_dUX
Billed as “the nation’s first technology based powersports platform” and the future of OmniChannel business, RumbleOn, Inc. (NASDAQ: RMBL) has been grabbing headlines since March 15 when they issued a statement to shareholders that “acknowledged two former directors and current shareholders, William Coulter and Mark Tkach, regarding their announced intention to nominate five individuals for three seats that they propose should be available on RumbleOn’s Board of Directors at RumbleOn’s 2023 Annual Meeting of Shareholders. These shareholders also announced their intention to make certain other governance related proposals at the annual meeting regarding the composition and organization of the Board.” The statement concluded no action was needed at this time... nothing to see here, move along (see below). On March 16, RumbleOn released its Q4 and 2022 full year financials which reported Net Loss of $(261.5) million with Diluted Loss per Share of $(16.48). Marshall Chesrown, RumbleOn’s Chairman and Chief Executive Officer commented, “Our fourth quarter results reflect forward-looking actions taken to better position the business for 2023 and beyond. We are aggressively addressing macroeconomic uncertainties, as we operate in an environment of normalized inventory levels and associated margin pressures.”
Tkach and Coulter responded by making their letter to the Board public and in press release form (see the following page for the announcement in its entirety). On April 5, they issued another statement “acknowledging” Tkach & Coulter’s proxy plans and added “no shareholder required at this time.” From there the war of words quickly escalated with “the dissident directors” demanding CEO Peter Levy be removed from the board and the company and new board members named. As required by SEC filings, RumbleOn issued a “First Quarter 2023 Earnings Release and Conference Call Schedule” on April 26. This announced the next call would be conducted on May 10. On May 3, RumbleOn announced the date of the 2023 Meeting of Shareholders would be July 14, to which Tkach and Coulter reiterated Levy and others would have to be removed before that...
On May 10, just before releasing its Q1 financials, RumbleOn “significant corporate government enhancements” including releasing Levy without cause and adding a Board member proposed by Messrs Tkach & Coulter (see page 30). However the Q1 financials that reported a Net Loss of $(16.9) million with Diluted Loss per Share of $(1.04), did little to appease the dissidents. So on May 15, RumbleOn announced Steven J. Pully had been appointed to the Board, which was not enough... You really can’t make this stuff up! Rather than making it up, what follows are highlights from both parties in chronological order.
DALLAS - RumbleOn, Inc. (NASDAQ: RMBL) today acknowledged the press release filed by two former directors and current shareholders, William Coulter and Mark Tkach, regarding their announced intention to nominate five individuals for three seats that they propose should be available on RumbleOn’s Board of Directors at RumbleOn’s 2023 Annual Meeting of Shareholders. These shareholders also announced their intention to make certain other governance related proposals at the annual meeting regarding the composition and organization of the Board.
Consistent with its fiduciary duties to all shareholders and RumbleOn’s governing documents, the Board and its independent Nominating and Corporate Governance Committee will follow all appropriate processes regarding any properly noticed nominations for the two Class II director seats to be elected at the 2023 Annual Meeting and any other governance related proposals. Shareholders are not required to take any action at this time.
RumbleOn’s Board welcomes open communications with all shareholders and appreciates shareholder input. The Board remains committed to acting in the best interests of all RumbleOn shareholders as we design and execute our strategy to support sustained growth and value creation.
RumbleOn has filed a preliminary proxy statement as the Board continues to seek agreement with dissident stockholders to avert a costly proxy contest according to today’s announcement:
RumbleOn, Inc. (NASDAQ: RMBL) (“RumbleOn” or the “Company”), the nation’s first technology-based powersports platform, today announced that the Company will hold its 2023 Annual Meeting of Stockholders (the “Annual Meeting”) on Friday, July 14, 2023. The board of directors established the close of business on Friday, May 26, 2023, as the record date for determining stockholders entitled to receive notice of and vote at the Annual Meeting, which will take place in-person at our Field Support Center in Texas at 901 W. Walnut Hill Lane, Irving, Texas 75038 beginning at 8:00 a.m. Central Time.
Further information regarding the Annual Meeting will be set forth in the proxy statement and other proxy materials for the Annual Meeting.
Important Information
RumbleOn intends to file a proxy statement with the SEC in connection with the solicitation of proxies for the Annual Meeting. Any definitive proxy statement and a proxy card will be mailed to RumbleOn’s shareholders. RUMBLEON STOCKHOLDERS ARE URGED TO READ ANY PROXY STATEMENT AND OTHER RELEVANT MATERIALS IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
These and other SEC filings made by RumbleOn may be obtained (when available) without charge at the SEC’s website at www.sec.gov and at the investor relations section of RumbleOn’s website at www.rumbleon.com. In addition, investors and security holders will be able to obtain free copies of these documents from RumbleOn by directing a request to Investor Relations, RumbleOn, Inc., 901 W. Walnut Hill Lane, Irving, Texas 75038.
Certain Information Concerning Participants
RumbleOn and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies under the rules of the SEC. RumbleOn’s stockholders may obtain information regarding the names, affiliations and interests of RumbleOn’s directors and executive officers in RumbleOn’s Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on March 16, 2023, and its proxy statement for the 2022 Annual Meeting of Stockholders, which was filed with the SEC on May 2, 2022.
To the extent holdings of RumbleOn securities have changed since the amounts printed in the proxy statement for the 2022 Annual Meeting, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. These documents can be obtained free of charge from the sources indicated above. Additional information regarding the interests of these participants in any proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will also be included in the proxy statement to be filed by RumbleOn with the SEC in connection with the Annual Meeting when it becomes available.
William Coulter and Mark Tkach, who together hold approximately 32.0% of the outstanding Class B shares of common stock of RumbleOn, Inc. (“RumbleOn” or the “Company”) (NASDAQ: RMBL), today provided an update to fellow stockholders about their efforts to enhance stockholder value at RumbleOn. Coulter and Tkach have filed a preliminary proxy statement and an accompanying WHITE universal proxy card with the Securities and Exchange Commission with respect to the election of directors of RumbleOn, Inc., a Nevada corporation (the “Company”), and certain proposals for the Company’s 2023 annual meeting of stockholders, set for July 14. Here is their open letter to the RMBL shareholders:
As you may know from our previous letter, over 32 years we built a thriving retail business, RideNow Powersports (“RideNow”). We sold RideNow in August 2021 to RumbleOn, after RumbleOn and its Chairman/CEO, Marshall Chesrown, approached us to acquire our business. The result of this transaction caused us to become substantial RumbleOn stockholders, with combined holdings of over 5.2 million shares, or 32.0% of RumbleOn Class B shares, as of April 17, 2023.
Over the past several quarters, like other long term RumbleOn stockholders, we have become increasingly disappointed in the Company’s financial results and corresponding stock price performance. We repeatedly expressed our concerns in private to the Company’s Board and CEO. Yet, their response was so inadequate that we saw no other choice than to begin a public campaign to improve the Company. It is important to note again that we are entrepreneurs who made our careers building and operating powersports dealerships. We accepted some of the consideration for our business in stock, as we believed in the vision of a combined RideNow / RumbleOn business. That vision has not yet come to fruition, in significant part due to a lack of management execution and inadequate Board oversight. A lack of independence in the boardroom has been a significant contributor to these problems.
Since initiating our campaign, we have been taking steps with the goal of maximizing value for all stockholders. We have evaluated what the existing management team has accomplished and has not accomplished since acquiring RideNow and Freedom Powersports. We have been in communication with other large stockholders to listen to their perspectives and to consider their ideas. We believe, when and if our nominees join the Board, they will need to immediately improve the Company’s strategy, its execution, its bloated cost structure and to make changes to the Board such that accountability and independence are front and center.
Given the time and cost associated with a proxy contest, and the Company’s acknowledgment in the March 16, 2023 earnings release that its business was challenged and it was a priority to improve its balance sheet, we have made good faith efforts to negotiate with the Board and its advisors in hopes of reaching a settlement. While we recognize that a settlement with the Company may not be perfectly reflective of the proposed changes that we publicly disclosed, we are willing to accept terms that will enable us to act quickly and decisively.
More specifically, we made our initial settlement proposal to the Company on March 3, 2023. We soon disclosed that proposal publicly, so that all stockholders would be aware of what we sought and how those changes would improve the Company. Incredibly, the Company did not provide a formal response to our proposal until April 10, 2023, offering to appoint Mr. Coulter to the Board, and to replace RumbleOn’s COO, Peter Levy, on the Board with an independent director chosen by the Board with Mr. Coulter’s consent, at the annual meeting. We declined that modest counteroffer, as we know first-hand from our short tenure on the Board that much more change is needed on the Board, particularly given the Company’s poor total shareholder return (TSR), weak operational performance and poor corporate governance practices.
Given the business challenges that the Company is confronting, we have continued to negotiate with Company, despite the Company frequently changing the party we have been asked to negotiate with – first outside counsel, then a tenured Board member and then an investment bank engaged by the Board, each of whom have told us that they represent the Company for purposes of these discussions. Interestingly, even though Director Shin Lee chairs the Company’s Nominating and Corporate Governance Committee, we have not had any contact with her about the possibility of new directors joining the Board.
We have had numerous settlement discussions, including the exchange of proposal terms, which are discussed in more detail in our updated preliminary proxy statement filed today with the SEC. In one of the Board’s offers, they proposed that Mr. Levy be terminated immediately as COO without cause, and also that Mr. Chesrown would begin a transition period before resigning as CEO by no later than the end of this year. We declined that offer, but we made a counter offer that we viewed as consistent with our objective of immediate Board refreshment with a majority of directors who are independent of the current Board and management team.
The Company’s most recent offer proposed leaving Michael Marchlik on the Board through the annual meeting, along with Messrs. Westfall and Chesrown and Ms. Lee, resulting in four incumbent directors and three new directors on the Board for the next two months. We are unwilling to accept that offer, as those four incumbents could delay badly needed changes at the Company and could make agreements with existing management that would be contrary to stockholders’ best interests.
We have discussed in earlier communications with stockholders the Company’s lack of urgency in addressing the operational issues, such as its rising SG&A/revenue ratio and swollen inventory levels. Our negotiations with the Company have only added to our concerns. For example, one of the Company’s prior settlement offers contemplated Mr. Chesrown moving immediately into a transition period as CEO through no later than December 31, 2023 (a change we had not sought), in exchange for his entire severance being paid at the inception of the transition period, instead of over three years, as his employment contract calls for. We calculate the cash component of this proposal (which does not include the vesting of Company stock) to be approximately $4.7
million, at a time when the Company is working with JP Morgan to improve its balance sheet. That same proposal called for the immediate termination of Mr. Levy without cause (and though not explicitly stated in the proposal, we assume implicitly called for Mr. Levy to receive his full severance benefits, consisting of significant cash and stock components).
The excessive bonus compensation which the Board awarded to Mr. Chesrown and Mr. Levy for 2022 heightens our concern about this issue. Mr. Chesrown and Mr. Levy were eligible for annual cash bonuses of up to 125% of their base salaries. At the conclusion of last year, Mr. Chesrown received a cash bonus of $658,282, 94% of his base salary, while Mr. Levy received a cash bonus of $554,845, 111% of his base salary.
In February 2023, Mr. Chesrown received a restricted stock grant (RSUs) for 190,909 shares, and Mr. Levy received RSUs for 136,364 shares. Together, these grants equal 2.0% of the Company’s currently outstanding shares. This year’s RSU grants to Mr. Chesrown and Mr. Levy were more than three times the amounts granted to them in March 2022.
This compensation was granted after the price of RumbleOn Class B shares fell 84.4% in 2022. The Company’s reported 2022 adjusted EBITDA of $120.1 million was well below its guidance of “at least $145 million,” which management reiterated to stockholders as late as August 9, 2022. Thus, as a reward for the Company’s poor performance that harmed its stockholders, RumbleOn’s top two executives were rewarded with large bonuses and far more shares than they received the previous year.
Incredibly, the Company has not disclosed the metrics by which its executives were measured or how these RSU grants and bonuses were calculated. We look forward to reading about these metrics in this year’s proxy statement.
The Board has a track record of not just questionable compensation decisions, but also of business and personal relationships with Mr. Chesrown and the Company. Nearly every incumbent “independent” director has business or personal ties to Mr. Chesrown. This, coupled with the negative trajectory of the Company since the RideNow and Freedom acquisitions and the excessive 2022 bonuses, demonstrates the Board’s inability, or unwillingness, to hold management accountable.
More specifically, Mr. Marchlik holds the important role of Chairman of the Audit Committee, which by rule must consist entirely of independent directors. He is an executive at an affiliate of B. Riley Financial, Inc. When RumbleOn acquired RideNow, a B. Riley subsidiary was RumbleOn’s financial advisor and its investment banker, garnering $17.1 million in fees during 2021. We understand that B. Riley maintained an investment banking relationship with the Company after the acquisition of RideNow.
Adam Alexander chairs the Compensation Committee, which by rule must also include only independent directors. RumbleOn spent nearly $4 million in 2022 alone on inventory management software and services provided by Bidpath Incorporated, a company owned by Mr. Alexander.
Kevin Westfall worked with Mr. Chesrown twice before joining the Board, at AutoNation in the late 1990s and at Vroom.com nearly a decade ago. We understand that the two enjoy a friendship of over 25 years.
While Mr. Levy is not considered an “independent” director for SEC and Nasdaq purposes, his seat on the Board contradicts today’s best practices of corporate governance, which call for only one insider, typically the CEO, to be on a public company board. His lack of experience at brick-and-mortar stores, and his lack of prior experience in the powersports industry, has shown prominently in the Company’s operating results. We understand that he and Mr. Chesrown also have a long friendship.
Once more, the current Board lacks the fundamental skills and experience to properly oversee RumbleOn. For example, no incumbent “independent” director has any executive experience at a retailer of powersports or similar products. No independent director holds a meaningful ownership position in RumbleOn. Moreover, no director has previously ever served on a public company board, other than at RumbleOn.
We are also concerned about the skills and experience of any new director that the current Board, or its advisors, may recommend. During settlement discussions, the Board has also identified for us certain candidates they are considering appointing to the Board. Due to a limited non-disclosure agreement that we entered into with the Company in order to learn the identity of these candidates, we are unable at this time to discuss these candidates’ individual qualifications publicly. We can say that we do not believe any are as well qualified as our nominees to sit on this Board.
Our nominees are extremely well situated and motivated to address the strategic and operational challenges confronted by RumbleOn. They bring knowledge of the powersports industry, successful C-level experience at a publicly traded retailer of recreational vehicles, and extensive experience as a public company director, often at companies dealing with meaningful debt loads. They are truly independent. All of these candidates were first identified for us by a third-party firm we retained to lead our search and vet potential candidates. We have no prior relationships with any of them. Through this process, we are convinced they are well qualified to lead the Company forward.
In closing, we are disappointed that we cannot bring news that we have reached a settlement with the Company that can bring along the change we are seeking more swiftly. However, it is important that any settlement allow the reconstituted Board to promptly put into effect the substantial changes that RumbleOn needs to stabilize the Company, execute on the strategy that began with the acquisition of RideNow and maximize value for all stockholders. If such a settlement cannot be reached, we will seek the changes that we previously disclosed at RumbleOn’s annual meeting on Friday, July 14, 2023.
DALLAS - RumbleOn, Inc.’s (NASDAQ: RMBL) (“RumbleOn” or “the Company”) Board of Directors (the “Board”) today announced a series of corporate governance enhancements that reflect the Board’s proactive and sustained commitment to strengthening its governance practices and meaningfully refreshing the Board.
In an effort to advance the interests of all shareholders, the Board is implementing enhancements to improve the diversity of the Board, broaden the expertise and skillsets of its directors, and heighten the Board’s independence. The changes announced today also include transitions within the executive leadership team of the Company.
RumbleOn’s Board today announced the following changes:
• The Board has approved an amendment to its bylaws to immediately separate the roles of Board Chair and CEO;
• As a result, the Board elected Independent Director, Kevin Westfall, to serve as Chair of the Board, effective immediately;
• RumbleOn President, Chief Operating Officer and Director, Peter Levy, has been released from his employment position with the Company without cause and has resigned from the Board, effective immediately. The Company has begun a comprehensive process to identify a successor for the Chief Operating Officer role;
RumbleOn Independent Directors Adam Alexander and Mike Marchlik have informed the Board that they will not seek reelection at the 2023 Annual Meeting of Shareholders; and, Becca Polak has been appointed to the Board as a new independent director to fill one vacant Class I directorship. Ms. Polak was one of several highly qualified and independent candidates identified by an independent search firm hired by the Company’s Nominating and Corporate Governance Committee and was selected based on her extensive and highly relevant experience, as detailed below.
The Board will be inviting Steven Pully, founding partner of Speyside Partners and one of the director nominees proposed by shareholders and former Board members, Bill Coulter and Mark Tkach, to join the Board immediately to fill the Class I directorship vacated by Mr. Levy, subject to satisfactorily completing an interview with the Company’s Nominating and Corporate Governance Committee. Additionally, the RumbleOn Board intends to nominate Messrs. Coulter and Tkach for election to the Board at the 2023 Annual Meeting of Shareholders. The Board looks forward to Mr. Coulter and Mr. Tkach accepting their nominations to the Board, an idea first raised by the Company when Mr. Coulter was asked to rejoin the Board in March. Each of Messrs. Coulter and Tkach has previously agreed in writing to being named in the Company’s proxy materials and serving as a director if elected.
Messrs. Coulter and Tkach are current shareholders and former directors of the Company, who previously announced their nominations of Mr. Pully, Mr. Coulter and (as an alternate) Mr. Tkach, among other candidates, as part of a series of proposals related to their planned proxy contest. Since then, the Board has repeatedly sought to engage in good faith with Messrs. Coulter and Tkach to resolve their previously disclosed concerns and avert a distracting and costly proxy contest. Messrs. Coulter and Tkach have refused to accept, in a settlement, anything less than immediate control of the Board and, instead, have been content to issue press releases providing misleading and selective characterizations of the negotiations to date. While the Company remains open to constructive dialogue, the Board cannot fulfill its duties to all shareholders by granting control of the Board to Messrs. Coulter and Tkach. In the meantime, the Board is unilaterally implementing the enhancements described in this release.
“These enhancements demonstrate our commitment to ongoing engagement and responsiveness to the input of our shareholders,” said Kevin Westfall. “Strengthening our leadership and evolving our corporate governance profile will support the advancement of our strategy, and we’re pleased to welcome new perspectives to our Board to help further drive sustained value creation for shareholders.”
“We look forward to welcoming Ms. Polak to our Board and believe she will make immediate and substantive contributions as an experienced, independent director,” said Shin Lee, Chair of the Nominating and Corporate Governance Committee. “She has an impressive track record in the automotive industry, and RumbleOn will benefit from her experience in driving organic growth and supporting digital transformation, in addition to her legal and compliance background and e-commerce, retail, and consumer finance expertise.”
RumbleOn remains committed to pursuing its growth strategy to unlock value and deliver on its goals. The Company’s five-pillar strategy, which involves self-funding, restructuring, and reducing debt, investing in technology, improving customer experience, and pursuing accretive M&A opportunities, has enabled the Company to continue to gain market share while expanding the business overall.
RumbleOn will release its first quarter 2023 operational and financial results before the market opens on Wednesday, May 10, 2023.
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RumbleOn, Inc. (NASDAQ: RMBL) (the “Company” or “RumbleOn”), the nation’s first technology-based powersports platform, today announced operational and financial results for the three months and full year ended December 31, 2022. RumbleOn management is hosting an investor call to discuss the Company’s results today, March 16, 2023, at 7:30 am CT (8:30 am ET).
Full-Year 2022 Financial and Operational Highlights
• Total Unit Sales of 81,037 across Powersports and Automotive Segments.
• Total Powersports Unit Sales of 73,413 with Used Powersports Units of 31,764.
• Powersports Segment Revenue of $1.4 billion, including the elimination of $71.0 million1, representing 78% of Total Company Revenue of $1.8 billion.
• Powersports Segment Gross Profit of $429.9 million, comprising over 95% of Total Company Gross Profit.
• Net Loss of $(261.5) million with Diluted Loss per Share of $(16.48). Full-year GAAP EPS reflects a $350.3 million non-cash impairment charge. Excluding the effects of the non-cash impairment charge and other non-recurring items, but including stock- based compensation expense, Adjusted Net Income of $37.3 million with Adjusted Diluted Earnings per Share of $2.35.
• Adjusted EBITDA of $120.1 million, driven by Powersports gross margin compression and reduced gross profit contribution from the automotive segment.
Fourth Quarter 2022 Financial and Operational Highlights
• Total Unit Sales of 18,419 across Powersports and Automotive Segments, impacted by the exiting of the Automotive Segment.
• Total Powersports Unit Sales of 17,550 with Used Powersports Units of 6,917, resulting in New: Used ratio of 1.54x, which increased slightly from the prior quarter.
• Powersports Segment Revenue of $320.5 million, including the elimination of $18.6 million1. Powersports segment revenue was 87% of Total Company Revenue of $369.5 million,
• Powersports Segment Gross Profit of $89.7 million comprising over 96% of Total Company Gross Profit of $93.1 million; Total Company Gross Profit Margin of 25.2% declined 60 bps sequentially.
• Net Loss of $(287.7) million with Diluted Loss per Share of $(17.80). Fourth quarter GAAP EPS reflects a $350.3 million pretax non-cash impairment charge. Excluding the effects of the non-cash impairment charge and other non-recurring items, but including stock-based compensation expense, Adjusted Net Loss of $(11.0) million with Adjusted Diluted Loss per Share of $(0.68).
• Adjusted EBITDA of $18.7 million, impacted by lower gross profit contribution from the Automotive segment combined with modest gross margin compression in the Powersports segment.
• Significant Financial Flexibility with cash, including restricted cash, of $58.6 million and total available liquidity of $196.1 million as of December 31, 2022, inclusive of availability under Powersports inventory financing credit facility of $75.0 million, announced on October 26, 2022.
• Signed an engagement letter with JP Morgan to review our balance sheet initiatives and options for 2023.
• Completed 3 “Tuck-In” acquisitions, 2 Polaris and 1 Honda franchise, in Texas. These acquisitions were funded from operating cash for a total purchase price of $4.8 million.
• Paid down $15 million of long-term debt.
Marshall Chesrown, RumbleOn’s Chairman and Chief Executive Officer commented, “Our fourth quarter results reflect forwardlooking actions taken to better position the business for 2023 and beyond. We are aggressively addressing macroeconomic uncertainties, as we operate in an environment of normalized inventory levels and associated margin pressures. We are building a solid foundation for long-term profitable growth, all while making prudent, timely and disciplined investments in technology and customer experience improvements online and in our stores. Further, the fulfillment process being rolled out will enable our operations and teams to become more agile to meet customer demand through diligent on time inventory management and customer selection and service.”
“With an ongoing focus on maintaining financial health and a strong balance sheet, we remain committed to a completely selffunded business model for growth. In the fourth quarter, we pre-paid $15M in principal and recently signed an engagement letter with JP Morgan to review our balance sheet initiatives and options for 2023. As we look to 2023 and beyond, we are continuing to implement our five pillar strategy to achieve our near and long term financial targets, driving sustainable shareholder value,” concluded Chesrown.
Reconciliation of GAAP to non-GAAP financial measures are provided in accompanying financial schedules.
Unless otherwise noted, all comparisons in the narrative are on a sequential basis for the three months ended December 31, 2022, as compared to the three months ended September 30, 2022.
Total Unit Sales of 18,419 declined (7.5)%, driven by the Company’s strategic decision to purchase fewer automotive units during the quarter, combined with the anticipated seasonal impact experienced in Powersports. The Powersports Segment made up approximately 95.3% of total unit sales in the fourth quarter with the Automotive segment comprising the remaining approximately 4.7%.
Total Revenue of $369.51 million declined (18.0)%. The Powersports Segment revenue made up approximately 86.8% of total revenue in the fourth quarter, the Automotive Segment made up approximately 10.2%, and the Vehicle Logistics Segment made up approximately 3.0%.
Total Gross Profit of $93.1 million declined (20.0)%. The Powersports Segment contributed approximately 96.4% of total gross profit in the fourth quarter, and the Vehicle Logistics and Automotive Segments made up approximately 2.9% and 0.7%, respectively.
Operating Expenses were $98.1 million, or 26.6% of revenue, compared to $102.8 million, or 21.9% of revenue. Total stock-based compensation was $2.1 million down from $2.6 million in the prior quarter.
Net Loss was $(287.7) million, reflecting a $350.3 million pre-tax non-cash impairment charge. Earnings (loss) per diluted share was $(17.80) compared to $0.19.
Adjusted Net Income (Loss) was $(11.0) million, or 3% of revenue, compared to $4.4 million or 1% of revenue. Adjusted earnings per diluted share was $(0.68) compared to $0.27.
Adjusted EBITDA was $18.7 million compared to $25.7 million. The (27.3)% sequential decrease in adjusted EBITDA was primarily driven by modest gross margin compression in the Powersports Segment and lower gross profit contribution from the Automotive Segment.
Cash as of December 31, 2022, including restricted cash, was approximately $58.6 million, and total debt was $635.2 million. Availability under our short-term revolving credit facilities totaled approximately $137.5 million. Total Available Liquidity, defined as cash and cash equivalents, including restricted cash, plus availability under our short-term revolving credit facilities totaled approximately $196.1 million.
Cash Flow used in Operating Activities was $(18.9) million for the year ended December 31, 2022, which was negatively impacted by $45.1 million of cash used for inventory purchases not financed by trade floorplan credit facilities.
Weighted Average Basic and Diluted Shares of Class B common stock outstanding were 15,871,005 for the year ended December 31, 2022. As of December 31, 2022, RumbleOn had 16,184,264 total shares of Class B common stock and 50,000 shares of Class A common stock outstanding.
RumbleOn is providing its outlook for the full year 2023 as follows:
• Total Powersports and Transportation Revenue of $1.4 billion to $1.6 billion, compared to Powersports and Transportation Revenue of $1.46 billion in 2022.
• Powersports GPU of approximately $5,700 compared to $6,159 in 20222.
• Adjusted EBITDA of $95 million to $105 million.
Our financial guidance includes the following assumptions:
• Combined Powersports new and used retail unit growth of approximately 5%.
• We expect continued gross margin pressure in the first half as new unit supply imbalances normalize.
• The $15 million SG&A reductions will begin to benefit our business in early 2023.
• This does not include any growth from acquisitions or tuck-ins, nor does it have a built-in overlay from fulfillment or technological opportunities that we create over the course of 2023. Continued on page
Used Powersports Units, which includes used retail and wholesale Powersports Units, declined (17.9)% sequentially. Sequential declines are primarily the result of our decision to slow down used vehicle acquisition while new inventory normalized.
Used Powersports Revenue declined (26.9)% sequentially due to anticipated seasonality. Used Powersports Gross Profit declined (42.9)% sequentially, due primarily to lower unit sales and anticipated seasonality.
New Powersports Revenue declined (9.4)% sequentially, despite a 6.6% increase in unit sales, driven by increased supply of new inventory and unfavorable price mix in consumer demand. New Powersports Gross Profit declined (21.2)% sequentially, due primarily to higher inventory acquisition costs.
Powersports GPU was $5,420, as compared to $6,348 in the prior quarter.3 3 Calculated as total powersports gross profit divided by new and used retail powersports units sold.
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largely dependent on image quality, but the plug-in allows for thousands of options to further tweak the avatars appearance. Clicking the “Install” button shown above adds the plug-in to the project toolbar (see right) so it will be available for all other projects. The “+” icon next to the plug-in opens the avatar builder where you can create an avatar from scratch or upload a photo to base it on. A sidebar panel lets you choose from a series of categories for additional detail refinement as shown in the next panel. During refinement the avatar can be rotated and zoomed so you can optimize the appearance of your build. The builder interface is intuitive and easy to use, allowing you to tweak to your hearts content. However, one issue that I noticed was that after completing the avatar it could no longer be edited. Sooo… it’s good to make note of your selections if you want to start a new project using the same avatar. Alternatively, you can sign up for a new (free) account on the Ready Player Me website and build/save your avatar there. The plug-in will allow you to upload your saved avatar directly from that location.
It turns out that the MyWebAR platform supports browser plug-ins that bring additional functionality to its core feature set. Clicking on the Extensions icon opens the “Extensions Store” (still free, despite being called a store!) which lists all available plug-ins. The plug-in that we’re interested in comes from Ready Player Me, a company that describes itself as “a cross-game avatar platform for the metaverse” (a what?). Their mission statement aside, the plug-in can analyze features like skin tone, facial structure, hair color and more all from a simple selfie! The image is uploaded and then used to generate a 3D avatar! Of course the result is only a first pass approximation
At this point, we’ve covered much of the MyWebAR interface and it’s time to put it all together. As mentioned above, we chose the “AR In the Real World” project type so we can view the output on an surface that we choose. We’re going to start with the fun part…. building our avatar. But what image to choose? We picked one that we thought appropriate:
Now I won’t belabor the process of “Building Bob” but the results were surprisingly good!
Ok, so he looks a little younger, but that’s not a bad thing! And yes, I saved Avatar Bob (AB) to the Ready Player Me website. You never know when it might come in handy!
So far we’ve seen how to incorporate images into our AR project (same process for video), but there’s another component that can really improve its realism: 3D models. And what could be more appropriate for Avatar Bob than a fully-dressed Harley?
So let’s head over to Sketchfab which, according to their website is “A community of creators who have published millions of models that lets buyers and sellers transact 3D models”. The good news is that there are plenty of free downloadable models as well. Searching for Harley-Davidson pulls up the page below. The price for each model appears in the lower right-hand corner of each image and freebies are identified by missing prices. We chose the Electra Glide Police Edition below.
At DX1, we pride ourselves on fast response times and quick resolutions. Our dealers have a dedicated account manager and can reach them by phone, online chat, or email. This level of support combined with our teams’ industry experience is what makes DX1 a leader in powersports dealership software.
Continued from page 40
Back in our project, we uploaded the Harley model .glb 3D file then placed it in our scene along with some additional image and video content. After re-arranging and scaling some of the content in our project, the AR scene was previewed and then published (ie, all of the settings were saved and a QR code generated). The layout in the project window is shown below.
By scanning the QR code below, you can bring Bob, bike and all right into your living room! The MyWebAR app will prompt you to allow access to your phone’s camera and motion/orientation detector which you should permit. Next, you’ll be prompted to point your camera at a suitable place for Bob to appear and then tap the location on the screen to confirm. You can scale and rotate the scene by two finger-pinching and dragging. Since this is a complete 3D environment, you can walk around with your camera to view things from all sides.
From his first motorcycles (a Honda S65 and an S90) when he was 16 to 50 years later, Don Musick has never stopped twisting the throttle. Although his accomplishments in the research arena have surpassed his MX career Don has over 25 years experience with major manufacturers in the Powersports and Automotive industries specializing in e-business solutions for retail distribution networks. His solution portfolio includes the development and implementation of manufacturer/dealer extranets, consumer-direct commerce portals, manufacturer/dealer e-channel integrations as well as development of web-based sales force automation tools. For most of his career, Don has been fascinated (his wife would say obsessed) with geographic market analytics, dealer location planning and sales territory optimization. He founded Genesys Technology Solutions (GenesysTech) http://www.genesystech.com/ to develop new tools and market intelligence products to help manufacturers understand the competitive landscape of their industries, recognize opportunities and grow their businesses. A Spartan to the core, Don earned a B.S. in Physiology and PhD in Biochemistry from Michigan State University. Contact: dmusick@genesystech.com
By Lenny Sims
Stocking up for spring/summer sales? Boats and personal watercraft are still bringing historically strong pricing. Outboard and inboard boats are still very close to peak pricing while stern drives and personal watercraft continue to correct back towards pre-pandemic trend. Speaking of emerging from the pandemic, Pontoon boats seem to be poised for a surge for some dealers this summer.
Looking at individual segments, the most recent 10 model years of used boat values are trending a bit lower than the high water mark the industry hit last year. Outboards averaged 8.1% lower in the first four months of 2023 compared to the same period of 2022, and 2.5% lower than late 2022. Stern drives averaged 17.6% lower in the first four months of 2023 compared to the same period of 2022 — 5.4% lower than late 2022. Inboards averaged 1.5% lower in Q1, and 0.5% lower than late 2022.
PWC sales are also riding a bit low in the Q1 waters. Personal watercraft averaged 13.9% lower in the first four months of 2023 compared to the same period of 2022. This is 3.9% lower than late 2022.
While PWC values are flat, inboards and outboards are holding steady at a high level, showing resilience in an environment of high interest rates and increasing economic headwinds. And there is the promise of the pontoon sector.
Bottom line for the boating business? All segments are well off the pandemic peaks of the past year. However they are still above 2021 pricing… and not showing cause for concern. Belay that call to abandon ship and stay the course for pre-owned profitability, provided you can find the financing needed.
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Typically, April and May are the peak of seasonal pricing, spurred by strong dealer demand and sharply rising prices. This year Spring is different. While pricing remains strong in relation to 2019, up 8-10% in some categories, the COVID years present much tougher year-over-year (YoY) comparisons. Additionally, the availability of New inventory, which was very scarce for 24 months, is providing dealers and their customers with more inventory options and shifting retail priorities.
In April, most categories reflected flat to negative pricing trends in relation to Actual Wholesale Prices (AWPs) from the previous 90 days. However, Domestic Cruisers, the largest volume segment being sold through the lanes, did show stronger performance in April, giving some hope for late Spring pricing. When looking YoY, nearly all categories continued to show sharply declining pricing trends with double-digit drops. The recordhigh pricing we saw last Spring will continue to be a tough comp for 2023 AWPs moving forward. With increased New unit inventory, incentive activity, and rising credit costs, the pressure is on Used pricing.
Given the continued uncertainty in the larger economy, interest rate sensitivity, and the prolonged weather conditions impacting many parts of the country, it’s easy to cast a negative outlook on the balance of 2023. However, it’s important to note that despite all of this, DMS sales data shows strong New unit retail sales volume in Q1 of 2023, with many dealers reporting solid pre-spring numbers. Moving forward, the key is inventory and how dealers manage it. If you’re still sitting on Used product you took in months ago hoping for a Spring life raft, that ship is leaving port. The time to aggressively move aged inventory is now, before market values begin accelerating declines this Summer and Fall. Take advantage of the tail end of Spring, use the data resources at your disposal, and liquidate inventory you don’t need in a timely fashion. It won’t be worth more next month.
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Charging Into 2023
CAKE:site NYC
SHIFTING GEARS: Andy Leisner Back In The Saddle At Rawrr
As Dealernews was meeting with CAKE at the Electrify Expo, the Swedish maker of premium lightweight, electric motorcycles, was putting the icing on CAKE:site NYC in New York City. This launch follows the opening of the first North American flagship CAKE:site LA, in October 2022, and is the beginning of a dealer network for North America, according to Eric Asmussen, CAKE Managing Director N.A.
“New York is already one of the most bike-friendly cities in the world, and the city continues to move towards decarbonization,” Eric explains. “CAKE’s arrival is an opportunity to envision the radical possibilities of green infrastructure in the city. We can show the world that a carbon-neutral society doesn’t have to be boring. Just like we do with CAKE’s products, we can combine responsibility and sustainability with innovation and excitement.”
Centrally situated in the historic Seaport district of Manhattan, near East River Greenway and Battery Park, this new location will offer test rides for visitors to experience the full functionality and power of CAKE’s electric motorcycles on convenient waterfront bike paths with unforgettable views. As with all CAKE:sites, the space is not only a showroom and test center, but will also serve as a full service center, event space and cultural hub for the tri-state area, where current and prospective consumers alike can come together to celebrate the brand’s products and access the brand’s team of experts.
“As the cultural and economic capital of the world, New York City is one of CAKE’s most crucial markets,” added Stefan Ytterborn, Founder and CEO of CAKE. “The city is constantly reinventing itself to make life more sustainable and accessible to its residents. As New York paves the road towards a more eco-friendly future, we’re excited to grow our presence in the city and demonstrate our unique vision for a zero-emission society.”
The CAKE:site NYC is located at 106 South Street, New York, NY 10038
Electrify Expo is set to see the kick off of CAKE’s new IPM motor platform and its dealer recruitment program. Called the “Jante” the new Internal Permanent Magnet (IPM) motor technology was designed from a clean sheet of paper and features an aircraftgrade aluminum housing and dual-bearing shaft. The Jante motor is designed to hit speeds over 100km/h and produce torque numbers over 500Nm on the rear wheel.
“We are very excited to introduce our new high performance Jante Drivetrain,” says CAKE CEO/Founder Stefan Ytterborn. “The Jante represents a significant advancement in CAKE’s electric motor design, providing our customers with a superior product that meets their needs for performance, efficiency and reliability.” Lighter weight, improved efficiency and more torque… what’s not to like?
“The biggest reason for our in-house developed motor is to take major steps forward, increasing performance for the category of lightweight electric motorcycles. At the heart of our vehicles everything is based on CAKE components that together deliver performance to the next level. We are happy to see our drivetrain technology being used in a number of bold projects. CAKE battery controller algorithms and more are already in other builds, and the new Jante is a significant addition to our drivetrain technology,” concludes Ytterborn.
Key benefits claimed for the Jante include:
• New IPM motor technology
• Higher torque at high RPM
• Improved durability and reliability due to dual-bearing shaft and aircraft-grade aluminum housing, rated at IP67
• Low cogging for smooth acceleration and precise handling at low speeds
• Compact and lightweight design for easy integration into a wide range of applications
But what does the name mean? The Law of Jante, or “Jantelagen” in Swedish, is a set of informal social norms that have been assumed and observed by people in the Nordic countries. These norms emphasize modesty, humility and the idea that no individual is more important than the collective group.
For more information about CAKE and Jante motor, click here: www.ridecake.com/technology-and-innovation
Tucker Powersports is now the exclusive distributor of Rambo electric bicycles, adding this unique brand to its expanding portfolio of e-power products. “Rambo has taken a unique position in the e-bike marketplace,” said Marc McAllister, President and CEO of Tucker Powersports. Rambo bikes are sturdy, fat tire bikes that excel at handling all types of terrain, making them a top choice for hunters and outdoors enthusiasts.
“Their focus on outdoor enthusiasts has a great connection to the products we already offer for adventurers on two or four wheels,” McAllister adds.
“We are thrilled to partner with Tucker Powersports to bring our bikes to their network of dealers,” said Jeff Sampson, Rambo’s Director of Sales. “Tucker’s reputation for quality and service is unmatched in the powersports industry, and we look forward to working together to grow Rambo’s business.”
Rambo offers two electric bikes designed for kids weighing 75 to 120 pounds. The smaller frame and 250-watt motors are a great way to draw first blood. For the bigger kids, Rambo’s good, better, best range includes:
• Pursuit designed for those who want to take their hunting to the next level. The RTR1000TS mid-drive motor has a peak rating of 1000W and delivers 110 N.M. of torque. The Pursuit also includes anti-puncture Kenda Kevlar fat tires.
• Krusader features two 500-watt hub motors and a 48 volt, 20 -Ah lithium-ion battery pack. The Krusader allows the rider to select all-wheel-drive when needed, or conserve battery by running a single motor. This model also includes a full front suspension fork and hydraulic disc brakes.
• Rebel features a 1000-watt Befang mid-drive motor. In addition to Befang’s quietest motor, the Rebel gets GT Air suspension and is available in two camo options and a striking black/gray look.
Rambo bikes are available to Tucker dealers. Check out specs and more details at: www.rambobikes.com
outstanding products, first the LiveWire ONE and then the Del Mar.”
Electric Motorcycles revenue was down 36% in the first quarter, due to lower unit sales of LiveWire ONE units and the inclusion of Harley-Davidson LiveWire units in Q1 2022 prior to the accounting carve-out, notes Morrissey. In line with expectations, increased operating losses versus the first quarter of 2022 were the result of the planned increase in product development investments to advance the electric vehicle systems and deliver the Del Mar. Operating losses also incorporate the added planned costs of standing up a new organization, including growing headcount.
While select dealers and distributors were meeting with the brass and engineering team deep in the heart of Texas, Volcon Inc. (NASDAQ: VLCN) announced pricing of an underwritten public offering. According to Aegis Capital Group who is underwriting the offering, 6,000,000 shares of common stock at a price of $0.75 per share will be made available. Volcon has also granted Aegis a 45-day option to purchase up to an additional 900,000 shares of common stock and/or pre-funded warrants at the Offering price.
Gross proceeds of the Offering will be approximately $4.5 million, assuming no exercise of the over-allotment option. Volcon says it intends to use the net proceeds for general corporate purposes, including working capital, operating expenses and capital expenditures. The offering is expected to close on today, subject to customary conditions.
This is not the first IPO rodeo for Volcon co-founders Chrstian Okonsky and Adrian James, head of Sprout Equity Ventures (Sprout is an Austin-based global investment firm). Volcon CTO Okonsky founded AYRO, Inc. in May 2016, and served as its chairman of the board from inception through listing on NASDAQ in May 2020.
With 63 units sold globally for Q1, LiveWire ONE electric motorcycles sales were off 13% and consolidated revenue was reported to be down 25% year-over-year. Electric Motorcycles revenue was down 36% in the first quarter, due to lower unit sales of LiveWire ONE units and the inclusion of HarleyDavidson LiveWire units in Q1 2022 prior to the accounting carve-out.
“LiveWire continues to invest in advancing our core technologies and expanding our product portfolio,” claims Ryan Morrissey, President, LiveWire. “The Del Mar is rapidly moving towards production with the first deliveries in the U.S. targeted for Q3 2023. We’re excited to bring the brand to Europe with two
The group’s other brand, STACYC was also off in Q1. STACYC revenue was down 22% in the first quarter, due to our channel partners for electric balance bikes taking a more conservative approach to inventory in response to the macro environment as compared to the first quarter of 2022. STACYC’s operating loss for the first quarter was negative $0.1 million versus operating income of $1.0 million a year ago, driven by lower volumes.
Most recently the Chief Consumer Officer for PADI (the world’s largest scuba diving organization) powersports industry executive and lifelong enthusiast Andy Leisner has surfaced back in the saddle as CEO for Rawrr eMoto. After racing motocross as an amateur and a career as a pro roadracer came to a close, Leisner later worked in powersports racing series/event management, off-road/street/UTV media (including being the publisher of Cycle World during its heyday), OEM management and market-expansion strategy. He even managed to find the time to serve three terms on the Motorcycle Industry Council Board of Directors as well as chairing the MIC Aftermarket Committee.
However this isn’t Leisner’s first rodeo in the EV space. He was CEO for the launch of Texas-based VOLCON 100% electric off-road powersports company through the summer of 2021. “Seems like my career trajectory has perfectly aligned with the launch of Rawrr,” he adds. But what is a “Rawrr?”
“Rawrr eMoto manufactures and sells electric off-road motorcycles in the rapidly growing lightweight segment,” he explains. “The first Rawrr model and the flagship of the brand—the Mantis—is a powerful, capable off-road motorcycle powered by a 9 kW motor and 2.1 kWh Samsung-cell battery. While performance is its nature, the 160-lb Mantis is also easy to ride for anyone new to motorcycling with its adjustable ride modes, suspension and controls.” Click here for more on the Mantis: riderawrr.com/products/rawrr-mantis-allterrain-electric-bike
THE ALL-ELECTRIC RUNT LT DESIGNED & ASSEMBLED IN THE USA FINANCING AVAILABLE
At a time when the powersports industry still hasn’t found a replacement for the International Motorcycle Shows tour, Electrify Expo has added a couple show dates to their 2023 schedule. They will also produce 200,000+ demo rides this year. The Long Beach Aquarium event area featured a touring track, eMTB dirt track, enclosed highspeed track and for the street legal EVs, access to Shoreline Drive, site of the Long Beach Grand Prix race course. Talk about meeting the customer where they live!
“I’m a big believer in advertising, but nothing competes with butts in seats… or feet on pedals, deck or board,” says event founder BJ Birtwell of the importance of demo rides. “It’s that lightbulb moment for consumers, and when it happens there’s no turning back. With 7 stops in 2023, the Nation’s largest EV festival will be in many of your backyards.”
With more than1,000,000 square feet of exhibit and festival space, reserved for the 7 venues this season, Electrify Expo makes a positive connection with eCurious and EV early adapters alike. Easing the transition to this shocking new world were everything for 1965 Mustangs. old trucks and even a beautiful 356 bathtub Porsche converted from ICE to ePower, along with tuner Teslas (there really is such a thing) and the current crop of micromobility machines.
Of course our attention was drawn to the two-wheeled toys! Birtwell claims everything from electric cars & trucks, e-motorcycles, e-bikes, e-scooters, e-skateboard,s e-surfboards, e-foils are on hand and available to demo! Hard to tell who will have more fun, the media or the Kids in the newly expande Kids Zone filled with electric go-carts, e-bikes and more.
As much as we wanted to try all the toys, Electrify Expo has a serious side. The opportunity to network with NHTSA, converse with CARB and talk shop with OEMs is not to be missed. Top of our list for Long Beach were a sweet meeting with the Swedes from CAKE who used Long Beach to announce a new dealer program, getting to the bottom of Bosch’s push into powersports (remember the fact finding survey from last issue?) and then hearing about Rawrr from Andy Leisner were among some of the business issues the magazine staff addressed. But all work and no play makes for a dull trade day!
While Creative Director Gus was more interested in the Juiced Sand Rail conversion and Editor Robin was into the Korean War era Jeep conversion, Production Manager Brenda stayed on task and checked out the Anthem Launch
Edition motorcycles from Ryvid. She notes deliveries begin this summer and the U.S. delivery area now encompasses Alaska and Hawaii.
We all checked out the Horwin at great length… but still can’t tell you a thing about the futuristic machine straight from Hollywood’s backlot! Think Battlestar Galactica meets Bonneville salt flats. Speaking of the need for speed, a couple of pioneering LSR EVs were on display just past the tuner Teslas… talk about strange bedfellows, but both camps seemed to appreciate how far technology has come in the quest for performance.
Dealers and visionaries are encored to make a connection with EV customers by clicking here to become an Electrify Expo partner at the venue nearest them this season: www.electrifyexpo.com/partner-registration?_kx=x_rp RFGuijSjj1u3wrXN7GTDOLVAK8sdv0B-DXlZBpw%3D. StNAwS
“Electrify Expo has significantly increased the number of brands participating and also added new entertainment elements for all ages,” Birtwell concludes. “We are bringing together legacy automakers, startups in the e-mobility space with truly unique products, and everything in between to give people hands-on experiences with the products that are going to change the world as we transition to an electric future.”
Over the past three years, Electrify Expo has established itself as the premier “EVent” for everything electric. The exhibitor roster includes the industry’s biggest brands including domestic and international automakers as well as early-stage companies. See the sidebar for the expanded 2023 schedule for the tour stop closest to you.
Electrify Expo, North America’s largest electric vehicle festival, charged into the 2023 season Electrify Industry Day on May 19, featuring panel discussions, workshops, networking with EV and micromobility professionals and discussing the latest trends, analysis and insights during a full day of brand engagement. Then the doors were opened to the public in Long Beach, California.
“With over 1 million square feet of exhibit and festival space, Electrify Expo brings in the biggest and best brands from all over the world to show off their latest and greatest products,” says event founder BJ Birtwell. “This year is your chance to experience it all!” With the demise for the IMS tour for ICE motorcycles, Electrify Expo is positioned as an alternative version of the International Motorcycle Shows he contends.
“Electrify kicks off our Long Beach and Austin Events with an Industry & Press Day on Friday that is loaded with new vehicle announcements, featured speakers and panels,” he notes.
North America’s largest EV festival is amping up for 2023. A couple new venues have also been added to the sevencity tour scheduled for May through November. Kicking things off in California in Long Beach and San Francisco, the series crosses the county to Washington DC, New York, Seattle, Miami and concludes at Circuit Of The Americas in September. Electrify Expo showcases more than 1 million square feet of exhibition and demo space from the world’s leading brands in e-mobility to an audience of engaged and enthusiastic EV shoppers.
May 19-21
Long Beach, CA
Long Beach Convention Center
June 24-25
San Francisco, CA
Alameda Point
July 22-23
Washington, DC
RFK Stadium
Aug 12-13
Long Island, New York
Nassau Coliseum
Sept 9-10
Seattle, WA
Marymoor Park
Oct 14-15
Miami, FL
Miami Dade Fairgrounds
Nov 10-12
Austin, TX
Circuit of the Americas
Click here for details on the individual venues: www.electrifyexpo.com/attend
Join our mission to accelerate towards a zero-emissions society, combining excitement with responsibility. Unlock your potential and boost your business success with bikes that excite, the world’s most design and innovative-awarded bikes of the 20th century. Our o ering features 20+ di erent models, ranging from versatile heavy-duty utility bikes to high-performance ultra lightweight o -roaders.
Sign up now to get in touch and join our exclusive community of selected premium partners. We're committed to working closely with you every step of the way to ensure our shared success - Let's talk!
https://ridecake.com/en-US/become-a-cake-partner
CAKE North America: 4112 Lincoln Blvd, Marina Del Rey. CA 90292 tel: +1 310 968 0221 email:losangeles@ridecake.com
Transactions were exclusively facilitated by our Harley-Davidson & Powersports Division.
DOWN HOME HARLEY-DAVIDSON
Burlington, North Carolina
Acquired by Phil Mitchell & Dan Roland from Fred Bosshardt
BONEYARD HARLEY-DAVIDSON
Winterville, North Carolina
Acquired by Steven Towers & Bobbie Krull from Marc Ingwersen & Jerry Carrillo
LOS ANGELES
HARLEY-DAVIDSON
Los Angeles, California
Acquired by Andrew Westbrook from Rodin Younessi
BUD’S HARLEY-DAVIDSON
Evansville, Indiana
Acquired by Evan Schipper from the Morand Family
BARNEY’S MOTORCYCLE & MARINE
3 Locations, Florida
Acquired by Dave Veracka from KC Wood & Todd Hempstead
PATRIOT HARLEY-DAVIDSON
Fairfax, Virginia
Acquired by Paul Veracka of PVM Enterprises from Sheehy Auto Stores
For a confidential consultation and complimentary opinion of value on your business, please contact us:
Harley-Davidson & Powersports Division
George C. Chaconas, Senior Partner, CBI/M&AMI
Office: 813. 569. 6250 | Cell: 813. 245. 2535
Email: george@performancebrokerageservices.com
Address: 2102 West Cleveland Street, Tampa, Florida 33606
Welcome to the May 2023 newsletter from the NPDA! There is strength in numbers, and WE APPRECIATE the more than 300 Dealers who have joined us in our Mission: “To advance our industry by elevating Dealers to be well prepared, sustainably profitable and exceed the expectations of a growing Powersports customer base.”
Okay, maybe not cake for everyone, Milton, but we’re very excited to celebrate the fact that two years ago in May, a hard-working group of powersports professionals – Dealers and industry experts acting as advisors – got to work forming the National Powersports Dealer Association.
We consider May 24 the anniversary date, but the idea of creating an industry association for Dealers had actually been envisioned for years. We have made up for lost time over the last 24 months by providing information, awareness and action on issues important to our 300+ members in cooperation with 20+ partners.
From May 24-31 we’re holding a special NPDA Membership Drive to honor the last two years, and extend special thanks to everyone who has been part of our history to date!
And, as we’ve been asking all along since our formation: Dealers, if you aren’t a member of the ONLY national organization here to serve you, what are you waiting for, a special invitation? Well, here it is - JOIN YOUR Powersports Association, the National Powersports Dealer Association, today!
This is not an episode of Office Space, but it is well worth tuning into the latest episode of Garage Composites Garagecast podcast. Sam Dantzler and Tony Gonzalez from Garage Composites meet with “The Bobs” — National Powersports Dealer Association Chairman Bob Atlhoff and NPDA Vice Chairman Bob Kee to talk about the dealer association’s stance on industry issues.
In particular, NPDA has recently come out with two of many position papers that intend to bridge a gap between dealers and OEMs, elevate retail excellence and provide a collective voice for the nation’s dealers. Listen in to understand their point of view that dealers and OEMs are not involved in a zero-sum game.
Learn more about how the NPDA is advocating for its members by listening in on episode #161 HERE.
Subscribe to Garagecast – All Things Retail on Apple Podcasts HERE
Our Strategic Partner Tucker Powersports has a generous offer –Dealers doing a certain amount of business with the Company get FREE membership in the NPDA!
Are you a Tucker customer? How much business are you doing with them? Contact your Tucker rep and see if your Dealership qualifies for a free or reduced fee NPDA membership! Existing NPDA members can also use this perk to renew membership when their current term expires!
Need to do more business with Tucker to qualify? Please consider doing so – the Texas-based distributor is taking a big chance on the NPDA and deserves support! Same goes if you already qualify - consider doing more business with Tucker - this leap of faith by Tucker will help us grow the NPDA into a greater force in the powersports industry.
Dealers, click HERE for complete details.
Thank you for reading our monthly newsletter! We send out this newsletter monthly but also please follow us on Facebook for updates on industry news, events, and more as we work to group this channel of communication for our organization! Click here and give us a like: www.facebook.com/npdaorg
Cycle Trader, a division of Trader Interactive, is composed of a unique portfolio of classifieds sites, including Cycle Trader, ATV Trader, PWC Trader and Snowmobile Trader. With more than 400,000 new and pre-owned units available from dealers and private sellers, these sites connect millions of active powersports buyers to sellers across the country. Cycle Trader offers sellers a comprehensive suite of digital marketing solutions to help them advertise their inventory across all devices.
“Cycle Trader’s team of innovative, dedicated sales and marketing experts are committed to empowering Dealers to seamlessly reach and engage more than 5 million average monthly in-market buyers,” claims the crew which recently allied with Statistical Surveys. “In addition to driving inventory exposure for Dealers, Cycle Trader offers solutions focused on lead generation and buyer engagement and business intelligence. Cycle Trader’s services range from SEO, Social Media Retargeting and lead management to dynamic reporting and competitive insights.”
Ryan Kloppe from the new sibling adds, “Statistical Surveys offers Dealers additional insight into current demand, market trends and more, through thorough reporting and analytics.”
Why Did Cycle Trader and Statistical Surveys Partner with the NPDA? Cycle Trader and Statistical Surveys are thrilled to embark on this new partnership with the NPDA and help Dealers thrive in the Powersports market. Our team strongly believes in the NPDA’s mission to align Powersports Dealers across the nation and provide them with access to dynamic programs and educational resources. As the landscape of the Powersports market continues to expand, Cycle Trader and Statistical Surveys want to ensure every NPDA Dealer member is well equipped to achieve their sales goals and grow their business.
How Can NPDA Members Best Benefit from Our Partnership? Cycle Trader and Statistical Surveys understand just how vital data and digital marketing is when it comes to sustaining growth, capturing buyers, and retaining customers in today’s Powersports marketplace. This is why we’re constantly developing solutions to help Dealers capture the online audience and gain valuable insight into these buyers. Dealers who partner with Cycle Trader gain exclusive access to pre-lead purchase data that can be leveraged to inform in their marketing efforts. When combined with post-purchase and marketplace data made available by Statistical Surveys, you can count on Cycle Trader to deliver powerful insights and tools to help you achieve your business goals.
Trader Interactive connects buyers, sellers and renters in the powersports, recreational vehicle, aircraft, marine, commercial vehicle and heavy equipment industries through a broad portfolio of marketplaces that reach 13.5 million unique monthly visitors. Linked by a widely recognized family of “Trader” trademarks dating back several decades, the company’s brands include lifestyle vehicle marketplaces Cycle Trader, RV Trader, ATV Trader, PWC Trader, Snowmobile Trader, Boatline, Aero Trader, and Trade-A-Plane, as well as commercial vehicle and equipment marketplaces Commercial Truck Trader, Equipment Trader, NextTruck, Rock & Dirt and Tradequip. Trader Interactive offers unique tools and insights to help dealers more effectively run and grow their businesses, including exclusive insights from our TraderTraxx platform and market share data from our brand Statistical Surveys Inc., and also powers thousands of dealership websites via our brands Commercial Web Services and RV Web Services.
Business Summary: Cycle Trader is an industry-leading online marketplace for buying and selling Powersports vehicles. Powered by the best-in-class technology, Cycle Trader offers a dynamic suite of advertising products and sales tools designed to ultimately move more inventory and drive growth. With the support of its sister company, Statistical Surveys, Cycle Trader continually arms Dealers with industry-first solutions that help Powersports Dealers capture high-quality leads and connections.
Cycle Trader/Statistical Surveys
Headquarters: Virginia Beach, VA pages.cycletrader.com/ssi cycletradermediakit.com
Report Highlights
Rising Fatalities, Distracted Driving, Speeding, and Alcohol
Peak motorcycle riding season is underway just as the National Highway Traffic Safety Administration released a grim report showing traffic fatalities across the board up sharply from 2020 to 2021, with distraction, speeding, and alcohol as key factors. Motorcycle and scooter riders, with their smaller profiles, are at an even greater risk of not being seen by drivers, so the Motorcycle Safety Foundation is urging all roadway users to “Expect Us, See Us,” and actively search for riders and stay focused on the road.
“The NHTSA data may be from 2021, but distraction, speeding, and driving or riding while under the influence continue to be problems today – however, these are all things we can change,” said Rob Gladden, MSF vice president of training operations. “May is Motorcycle Safety Awareness Month and we want to call attention to how smart, attentive driving and riding behaviors can save lives.”
Distraction-affected crashes rose 12 percent from 2020 to 2021, according to NHTSA, while speeding-related fatalities increased by 7.9 percent, and alcohol-impaired-driving fatalities rose 14 percent. Read More
MSF NEWS
RIDE Day Becomes a Model for the Safety Community in Colorado
Working with the Motorcycle Safety Foundation, Colorado’s rider training program can now help communities across the state see the benefits of formal coaching and two-wheel education. This came about through the development of the MSF RIDE Day, which gives first-time riders their first taste of motorcycling and which allows current riders to test their skills and experience the benefits of advanced training, all with the help of certified coaches.
In April, the Colorado State Patrol and MOST – the Motorcycle Operator Safety Training organization –collaborated with MSF staff on a special event so several of the state’s training professionals could learn how to present RIDE Days themselves, at recognized ranges across the region.
“Now there are eight Colorado coaches who can deliver half-hour MOTO Intro sessions during an MSF RIDE Day, which also serves to familiarize participants with training sites, training motorcycles, gear, coaches, and more, making it easier and more likely for them to enroll in a Basic RiderCourse,” said Corey Eastman, MSF director of rider education expansion. “For current riders, the importance of our RIDE Day SKILLS Check cannot be overstated. We want riders to be lifelong learners. This also is an ideal way to connect with non-licensed riders and show them that training and being licensed are true benefits, as well as fun. We aim to convince more training sites that advanced RiderCourses are worth offering.” Read More
This industry is and was built by people who are passionate about powersports. For decades people who loved dirtbikes, streetbikes, ATVs, UTVs, watercraft and snowmobiles grabbed the handlebars and twisted the throttle to take this industry forward. Along the way, we became a $50 Billion business. Somewhere along the way, the bottom line made its way into the equation. Passion gradually fused with professionalism and our avocations became our vocations.
Most of the people started brands because they felt a need to make their motorcycle better, whether it was lighter, faster, stronger or even cheaper. They did it because of a need and not because they were going to get rich from it. If they did get rich, then that was just an added bonus, in my opinion. Many of today’s industry titans got their start at the dealership level. A lot of us still remember customers coming in and hanging out at the shop and bench racing for a while…
We have also seen the emergence of much bigger operations than the mom & pop motorcycle shop. At the turn of the century there were hundreds of small motorcycle brands who were gradually replaced by the Harley, the Big Four and now KTMs group of brands. When I got into the game, there were something like 200 regional distributors (and Dealernews even hosted a Distributor-only trade show) but consolidation saw the big three assimilate most of the market. Now it seems as if we have two distinct career paths in powersports, either working for small shops or larger companies like OEMs and Omnichannel Dealership groups.
In my 30+ years of being in this industry I have been part of a lot of these passion driven, enthusiast run small companies. The one thing most of them have in common is that these small operations are being run by “dumb” motorcycle people. Now I don’t mean dumb in the sense you might be thinking.
I mean we walk to the beat of a different drum. We don’t do Corporate America very well. We don’t wear a suit and tie nor do we focus on the bottom line instead of the big idea. If we were to take a poll from a lot of the old school established aftermarket brands and long standing dealerships, I think it would be fair to say that 50% of these successful people didn’t go to college. The “smart” Wall Street, Fortune 500, and major household brand people don’t always seem to fare well in our industry for some reason. I get that times change and change happens… but you have to admit we are a stubborn bunch, aren’t we?
More than ever venture capital money has come into our industry with the likes of Bell and Fox becoming part of Vista Group; Tucker and Western Power Sports on the distributor side, and now even at the dealership level with the RideNow and RumbleOn mashup to name a recent few. These companies that were started by passionate individuals are now a much different version of their original selves. So when considering employment in this industry, you may have to decide between working for a small family / enthusiast owned business or a large corporate entity. Each option has its own set of benefits and challenges.
• Close-knit Work Environment: Small companies often foster a tight-knit work culture, promoting stronger relationships among employees. This environment can lead to a greater sense of camaraderie, increased collaboration and improved communication among team members.
• Greater Autonomy: Working for a small motorcycle company often allows employees to have more autonomy in their roles. With fewer layers of management, decision-making processes can be streamlined, enabling individuals to take on more responsibilities and make a direct impact on the company’s operations.
• Diverse Skill Development: In a smaller company, employees often have the opportunity to wear multiple hats and gain experience in various areas. This exposure to different aspects of the business can contribute to a broader skill set, allowing individuals to become more versatile professionals within the motorcycle industry.
• Limited Resources: Small motorcycle companies may face financial constraints and have limited resources compared to larger counterparts. This limitation can impact aspects such as research and development, marketing budgets, and technological advancements, which may hinder growth opportunities for both the company and its employees.
• Uncertain Stability: Smaller companies are typically more susceptible to economic fluctuations and market uncertainties. Their survival may depend on external factors such as market demand, competition, and financial stability. This aspect can introduce a level of instability and uncertainty into the work environment.
• Established Reputation & Resources: Large motorcycle companies often have well-established brand names and greater financial resources at their disposal. This provides employees with a sense of stability and opens doors to advanced technologies, better facilities, comprehensive employee benefits, and opportunities for professional growth.
• Global Reach & Networking: Large companies in the motorcycle industry often have a broader market presence, both domestically and internationally. This global reach can offer employees the chance to collaborate with diverse teams, work on innovative projects, and establish valuable connections within the industry.
• Bureaucracy & Hierarchical Structures: Larger companies often have more complex organizational
structures and hierarchies. This can lead to longer decision-making processes, reduced individual autonomy, and a more formalized work culture, making it challenging for employees to implement changes or make an immediate impact.
• Specialized Roles: In larger companies, employees may have more narrowly defined roles, focusing on specific tasks or departments. While this can provide expertise in a particular area, it may limit the opportunity for employees to gain broader experience and explore different aspects of the business.
There are obviously pros and cons to both and one is not better than the other, as long as you are fulfilled and happy. Remembering why we work in this industry, being appreciated and feeling fulfilled and happy are really the keys to working at a large or small company. Deciding whether to work for a small or large motorcycle industry company is a personal choice that depends on individual preferences and career goals.
Dealernews is honored to work with Motorcycle Industry Jobs to recognize the people who make up this great industry. “When you start reading the Industry #PROfles, you will notice that 80-90% of them get their start at a motorcycle dealership,” says MIJ founder Alex Baylon. “The dealers are on the front lines and have always been the heart and soul of the industry. Without motorcycle dealerships, most of us wouldn’t be where we are today, so part of our message is always going to be ‘support your local motorcycle shop.’”
In addition to recognizing industry pros, Dealernews is also working with MIJ to create a job ticker tape of the latest positions opening in the industry at the Dealernews.com site. Check it out at: www.dealernews.com/Industry-Jobs
“Tell us your story,” adds Baylon. “We would love to feature you! Click here to fill out the questionnaire: www.motorcycleindustryjobs.com/industry-profiles/
MotorcycleIndustryJobs.com founder Alex Baylon has been hiring and firing people in the powersports industry for 25 years.
Currently with a major distributor, he has also been with Dragon Alliance, Ceet Racing, MX GP Services in Europe, Acerbis USA, Motonation/Sidi Boots and Scott USA. He started MIJ as he saw a need in the industry for people who are passionate about the motorcycle industry to have an employment outlet. The motorcycle industry like many others has always recycled employees from one company to another and it has always been done by word of mouth. MIJ allows companies in the industry to post their openings and give others in and out of the industry a chance to apply and insert new blood and fresh ideas in the many opportunities in the motorcycle industry.
As part of our commitment to facilitating OHV educational opportunities, Quiet Warrior Racing restarted its popular on-site OHV workshop program for the first time in several years. QWR hosted the 2023 Interagency Ranger Ride at the BLM’s Chappie Shasta OHV Area near Redding, California, on May 1-4. It was great to get back in the saddle for networking, training and finding common ground for the agencies and the OHV community!
Due to a series of mega wildfires and COVID closures, the OHV Ranger Rides had been sidelined since 2017, so the group of dedicated OHV trail leads, crews, instructors and partners were glad to get back to an in-person field workshop. A host of top tier federal and state OHV specialists from the Klamath, Shasta Trinity, Mendocino, Eldorado and Tahoe National Forests were joined by the Ukiah, Eagle Lake and Redding Field Offices were in attendance. CA State Park representatives were there addressing everything from grants and law enforcement initiatives to the revamped OHV Safety Week Program.
To kick off the workshop, Sky Zaffarano, the OHV Program Manager for the BLM’s Chappie Shasta OHV Area, talked about the agency’s efforts to manage the route network for all sizes of OHVs. Zaffarano noted the recent focus on providing trails for SxS use, noting that increasing single-track companion routes often parallel the wider trails used by larger vehicles. This enhances the OHV recreation experience for both vehicle types as well as increasing safety on the trails and accessibility for all.
Jon Brandt, a certified DirtBike School coach and State Park Peace Officer, taught a one-day hands-on training session to agency students that needed lessons on how to safely ride an off-road motorcycle and to get their Dirt Bike certification. Josh Liebscher, CA State Parks OHV Grants Administrator, gave the participants an overview of the Grants Program and their commitment to help support their federal agency partners provide environmentally responsible OHV recreation on public lands.
Chris Real from DPS Technical, provided sound and spark arrester training/certification. The new field staff had the opportunity to perform vehicle measurements and use the instruments. The goal being to increase understanding of inspection methods for spark arresters with valuable participation from seasoned OHV specialists. Real also had a special presentation related to Emerging Technologies of Off-Highway Vehicles. This presentation reviewed 50 years of Off-Highway vehicle types and provided a perspective of the new vehicles that are headed to the Off-Highway recreation areas. In addition, he highlighted both the opportunities and challenges from large ROVs to electric motorcycles that land managers are now contending with in multiple use areas.
Other topics discussed in various modules or around the campfire included the importance of land agencies adding dirtbike strike teams to their suite of post wildfire and storm recovery efforts, developing meaningful partnerships with trail clubs and nonprofit trail recovery organizations. Another accomplishment was discussing new management strategies to enhance recreation opportunities for SxSs (since it remains a growing user group). However the best part was allowing staff to actually get some onthe-trail seat time to help build muscle memory and/or see how other units manage their trail systems, and much more.
“We had an effective mix of new OHV trail personal, private sector professionals and agency OHV Master Performers that fostered a rich educational experience for new agency hires and seasoned staff alike,” states Don Amador, QWR President and founder of the 27 year-old Ranger Ride Program. “It was clear the group thought one of the most important benefits of this and similar field-based events is they allow for participants to build long-term relationships with other professionals for the benefit of providing sustainable trail-based recreation for current and future generations.”
QWR appreciates the presenters from the FS, BLM, DPS Technical and the CA State Parks OHV Division who helped make this workshop a success. We also thank the OHV Division and the CA Outdoor Recreation Foundation’s BE THE OFF-ROAD HERO Safety Week Program for sending educational materials and support staff.
QWR also wants to thank the BLM’s Redding Field Office for sharing their OHV management expertise with the Ranger Ride attendees. Thanks also to the MIC’s Right Rider Access Fund and Kawasaki Motors Corp., U.S.A. for their generous support of this educational endeavor to help educate agency staff about safe vehicle operation and review new recreation management strategies to address emerging technologies and uses.
Don Amador has been in the trail advocacy and recreation management profession for almost 29 years. Don is President of Quiet Warrior Racing/Consulting. Don served as a contractor to the BlueRibbon Coalition from 1996 until June, 2018. Don served on the California Off-Highway Motor Vehicle Recreation Commission from 1994-2000. He has won numerous awards including being a 2016 Inductee into the Off-Road Motorsports Hall of Fame and the 2018 Friend of the AMA Award. Don currently serves as the government affairs lead for AMA District 36 in Northern California. He may be reached via email at: damador@quietwarriorracing.com
Keeping trails open is everyone's responsibility. By working together as one motorized community, we can keep our trails open, healthy and beautiful for generations to come. Do your part by riding responsibly, keeping trails clean and trash-free, and volunteering with organizations that are working to keep access open for everyone.
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I RIDE, I DRIVE, I OFF-ROAD, I TREAD LIGHTLY!
Are You Offering Them?
CUSTOMERS ARE SPOILED. We won’t pay for what we already know. We won’t go two minutes out of our way to come visit you unless it is absolutely necessary. We’ve become a razor-edged crew of hardened shoppers who have vendors effectively coming directly to our palm, desktop or doorstep. The Pandemic — and then the Recession coincidentally timed with advancing technology and protracted fear — has effectively modified our predatory hunting and gathering behaviors to an evolutionary new level.
Is it ugly, or is it progress? Either way, it’s a fact!
Rocks gave way to spears so primitive man could more efficiently put meat on the hearth. Spears gave way to bows, which in turn gave way to rifles so hunters didn’t have to hike so far. Rifles gave way to stores and shopping malls, downsizing the hunting ground even more. Then along came the Internet, Amazon and Google making our hunting perimeter much smaller. Our prized quarry was brought to the doorstep instead. Those hunting treks to your dealership in search of knowledge and products suddenly gave way to six clicks on your computer mouse or iPhone.
Shopping and buying are primeval behaviors that will always be part of the human animal. When malls were de rigueur it was called “going shopping.” Whatever your generation or mindset you take, they are nearly all the same things. Even “merge and acquire” (M&A) in modern finance is directly metaphorical to a snake stalking a tree frog in the rainforest. At a retail level, customers hunt differently in 2023 than in 2021—more finger tapping and a lot less walking.
But wait, there’s more: house-calling mechanics; online dealers; search engines; apps; social media; mobile marketing; e-shopping available 24/7/365 — It sort of messes with the rules for traditional shopping and buying things, doesn’t it? If you rely 100% on selling things out of a 1990s brick-andmortar retail operation which is open five days a week during the hours when only the aged and the unemployed are free to shop, take heed!
It’s a bleak picture… unless you slow down and study your customers’ new habits and behaviors. In your fear-driven haste to stay alive, have you looked inspirationally at what might create abundance for you and your customers? Lose any hesitance about you over-influencing your customers — the Age of Information reversed that power a decade ago enabling them to influence you! But will you listen?
We are now a market-driven society and no longer a manufacturing-driven one. Push has changed to pull. Ford no longer tells the market what it will deem acceptable in next year’s model; customers tell Ford via online focus groups and digital surveys what they want, and Ford makes it! Manufacturers, retailers — and service providers — now can feel the pulse of the American consumer quickly, inexpensively and instantly... If they care.
Enough scare tactics! It’s still fun to go out and buy a new motorcycle or UTV. The thrill of hunting and acquiring remains exhilarating, but how much of that hunting happens first from an office chair or home sofa? Dealers, however, can keep the floor traffic growing if they subscribe to the fact that customers will still pay for three things:
We can’t read everything on the Internet. We have families to raise, jobs to perform and a life to pursue. Even with all the information at our fingertips, customers most often don’t even know the right questions to ask. Google sucks if you don’t know to ask what a worn sprocket looks like or at what preload/rebound settings your adventure bike’s suspension should be set. A dealer’s insight and advice for our specific predicament remains invaluable, and we will pay for that if you demonstrate it to us.
Do you build that value of insight, or is it an assumed part of your business? Most retail operations don’t provide insight anymore — they seem to want to become self-service like a gas station. Position your business and your staff as the experts and train them in the art of polite interrogation. Get to know your customers’ habits and you will get to know their needs.
EXPERTISE: Lead customers to experience discovery using your knowledgeable staff and the art of polite interrogation.
Have you ever heard that the best salespeople make it their customer’s idea to buy? The delivery and timing of just the right amount of information, along with just the right amount of interrogation inspire the customer to continually want more.
This is engagement at a high level — and it’s your supreme goal and advantage over the Internet in a physical environment. After all, your customer came out of his way to visit your store, so it’s expected you will take time to lead him to discovering what’s new to him. Dig deeper, because he likely didn’t stray eight miles from his couch or computer to “just look.”
INSIGHT: Your customers do not have the insight your staff has, and they also often don’t know the right questions to even ask. Customers will pay for your insight, but only if your people are willing to share it.
Expertise comes in two forms: retailing expertise and information expertise. When was the last time you performed a competitive analysis on other brands and retail operations in your area? Do you really know and understand where you need to improve? How is your conversion rate compared to your competitor? If it cannot be measured, it cannot be improved, so become a coach and start collecting stats. Observe your rival from across the street and count the number of customers walking in empty-handed versus those emerging with a bag, box, or bike. Are they converting shoppers into buyers more effectively than you? Why?
Then comes your informational expertise. Have your employees taken all the training available in technical product information, display techniques and sales? They are your commandos, so prepare them for war… and then collect your dividends.
DISCOVERY: Only statistics and achieving benchmarks will prove that you have the right expertise working under your roof. Become a coach! Collect stats! Rank performance!
What are you doing to increase door swings, conversion rates, add-on line items per sale, and maximize the customer’s shopping experience? Provide new insight, grow your expertise, and lead us to discovery. The impersonal Internet cannot hold a candle to your store if you excel on these three human forefronts.
If the concept is right, the money will come.
Be it business, racing or the business of racing, we can accomplish much with a little grit and determination. However, the way the current economy is shaping up, it is going to take a lot more determination and hard work to finish ahead of the pack in the impending race against the Recession!
With the Baja 500 just around the corner here is a photo of Jack Johnson at the finish line of the 1979 Baja 500 — an event he made history in by riding solo to the overall win. Jack remains the only person to ever achieve this amazing feat… I know because my partner Brent Wallingsford and I had just set a record for most consecutive SCORE overall wins, finished 2nd that day, ending our streak.
Before the race Husky management and everyone else tried to get Jack to take on a partner to help relieve him at least a bit and give him a shot at the win. His normal partner Larry Roeseler had a broken collarbone and couldn’t ride. Jack wouldn’t hear it. The year before Jack had accepted a lastminute partner and got beat by Brent and I, so he had seen that movie and wasn’t going to repeat it again.
He put in an amazing ride beating all the best at the time. Wallingsford and I were sure Jack would fade at some point, especially with the heat and all the miles in the southern desert. But Jack never faded… he just went harder and faster as the kilometers rolled on.
The photo at the finish clearly shows the face of a man on a mission. The ferocity in his look tells you all you need to know. I am somewhere nearby, probably crying in my milk because he beat us.
This is an amazing story, but it gets better. Jack was clearly a gangster of all gangsters that day when it came to Baja/ Desert Motorcycle racing, but look over his shoulder and you will see a gangster of all time, none other than Pablo Escobar!
See that man sucking on the lollipop? It really is cartel boss Pablo Escobar. Pablo’s brother raced dirtbikes for a while and it’s well known in the documentaries on his life that Pablo was an avid off-road rider himself. There is plenty of film documentation of his rides with his friends on his villas. The guy on Jack’s right shoulder is one of his bodyguards. What an amazing moment caught in time.
I just wanted to share this amazing photo with you and the story behind it. It just goes to show what someone can do when they make up their mind to give it their all. Our industry could learn a lot from Jack!
Keep your eye on the prize and ignore those suckers over your shoulder!
Specializing in Adventure, Dual Sport, Off-Road and EV market segments.
Delivering solutions in today’s rapidly evolving marketplace.
Over 35 years of senior level executive management experience.
• Brand Development
• Advisory Services
• Strategic Planning
• Product Development
• Motivational Speaking
• Advocate for the Sport
INDUCTED 2008
Brad Benson tells the Sea Foam story... and more at AIMExpo. Trusted by mechanics since 1943, Sea Foam Sales Company was born with a focus on safe and effective products that help engines and equipment run cleaner and last longer.
The Sea Foam story began in the 1930s, when Fred Fandrei, a salesman in the petroleum industry, wanted to spend more time fishing than fixing his outboard motor because of fuel-related problems. With the goal of finding the perfect petroleum blend, Fred created a formula that would stop fuel from going bad and help his motor run better. The formula became quite popular among his fishing friends. He began selling it to local fishermen in beer bottles and quart jars, naming the formula “Sea Foam” after a friend in Florida called and asked for some of that “Sea Foam stuff.”
Sea Foam has grown since its humble beginnings, but our focus is still the same: safe products that are proven to work and keep engines and equipment running their best. Benson highlights the latest offerings as the venerable brand pushes into powersports:
Although Sea Foam is a product that’s been around for 80+ years now, we’re venturing into more of the powersports channels and we want to get acclimated with all of our motorcycle enthusiasts. Sea Foam is a great product with fuel stabilization. It protects and lubricates, it can go into the fuel or it can go into the oil… it can be used as a carburetor or fuel injector cleaner. Fred Fandrei, the gentleman that created it is a great American success story. He created it in 1938, patented it in 1940, and for 81 years now it has been used in internal combustion engines, gas and diesel, two stroke and four stroke… We have been known in the automotive and trucking industry for a long time, but there’s so many great aspects of our product that work with powersports products in general and motorcycles in particular.
For your dealer program, you’ve got a point of purchase materials, you have advertising campaigns, you have trackside displays…
We also have a great website seafoamworks.com with a lot of tutorials and how-tos. It covers all of the other branded products that we do have and gives dealers and customers all the information they need.
But this is not just a money grab for Sea Foam… Sea Foam is a company with a mission.
Yes, I’m very happy to work for a company like this. Our owner is a very big philanthropist and a Christian based faith person. Our mission statement is that this product will give engines second chances, and the profits and proceeds will give people second chances through the charity work that we do throughout the world. It’s a great platform and a mission. So the more that we sell, the more we give back to our community and the world.
And that’s pretty much the dealer life in a nutshell — Dealers are the hub of the local powersports community and are the most giving group of people! You also have some other new products here at the trade show.
We have a product called “Bugs Be Gone” — This is a brand new relaunch. But it is not just for bugs; it works for mold and mildew, proteins and enzymes that build up. It’s bio friendly, environmentally safe, it can remove bird droppings and even sap! You can use it as a detergent to clean stains off your clothing. We’re relaunching this in a new bottle with infomercials on TV and in social media, but also in person. We plan to be at Daytona Bike Week, Sturgis Rally and also have it at the Donnie Smith Bike Show to showcase our products.
We have another great new product, our interior detailer. What’s unique about this is that it works on all vinyl, all leather and all plastics on a vehicle. What I have found
throughout motorsports is that the infotainment center and inner fairings need something that doesn’t streak or leave a shiny slippery feel. It has a matte finish, so it works on touchscreens, but it also has a UV protectant so your paint, plastics and seats will be UV protected. But the key deal is it won’t be slick, so if you do get it on your hand controls or your grips, it’s not going to be a problem. If it gets on your floorboards your feet won’t slide off your pegs… the running joke is, if you didn’t like the partner on the back of the bike, just give a little throttle and they’ll slide off with some other “protectorants” — and then last but not least, we did add an exterior detailer. Just give any surface a nice quick spray on/wipe off. It beads up water. I’ve sprayed it on helmets, matte finish helmets, gloss helmets, and I have seen no ill effects on the paint for the surfaces.
Where can dealers get in touch with Sea Foam? Are you using distributors or going to dealerdirect?
Right now I’m working with some of the powersports distributors. Some of the dealers are buying from some smaller regional distribution channels as well. But if they don’t have it in stock, Dealers can get it directly from us… That’s why we’re here attending AIMExpo and working with you guys in your publication to get the word out about Sea Foam.
And I will tell you, if you are a dealer, you need to be here at AIMExpo!
Remember Lectron carbs? The 2-stroke atomizing experts are at it again with their latest Billetron Pro-Series. “This carburetor combines the best of all worlds, integrating three easily adjustable fuel circuits that allow you to fine-tune the fuel mixture for optimal performance.”
The idle circuit (metering rod) delivers precise control over the engine’s idle speed, while the low-end circuit (externally adjustable) can be adjusted to provide a throttle response range from linear and crisp to hitting like a freight train. The top-end circuit (externally adjustable) ensures tunability to deliver maximum horsepower. Lectron claims its internal fuel routing reduces fuel travel by 30%. This innovative design delivers fuel more quickly and responsively. They are so confident in this new carb, Lectron is offering a buy-back program. Click here: www.lectronfuelsystems.com
HJC has unleashed its new Miles Morales Spiderman Graphic for the RPHA 11 lineup. Inspired by the new character, as seen in the animated movie Spider-Man: Into the Spider-Verse. This new graphic is timed to coincide with the upcoming film set to release this year. However, underlying the striking graphics are HJC’s safety and comfort features. It is constructed with HJC’s PIM+ shell, which combines a blend of carbon fiber, aramid, fiberglass and organic non-woven fabric for strength and impact resistance. The advanced ventilation system ensures optimal airflow, while the anti-scratch face shield with UV protection provides clear visibility. For more information about the HJC Miles Morales SpiderMan Motorcycle Helmet Graphic, head over to: www.hjchelmets.com
School is out for Summer and it is time to start stocking vented gear for the cool kids! Not just any vented jackets, though. Motonation’s Europa is a warm weather jacket that’s significantly vented yet features a waterproof Taffeta zip-out inner liner. “This removable liner system will have you riding comfortably rain or shine,” says Motonation impresario Bill Berroth. “It has twice the features at half the price of anything else on the market.” Click here for more details: www.motonation.com/motonation-europa-sport-vented-textile-jacket. html
“The M8 is really unique in that it wants a longer exhaust to prevent reversion,” explains Grant Hillegass, Product Line Manager at FireBrand. Enter the Monarch two-into-one system designed specifically for late model Harley-Davidson M8 Touring bikes. This long pipe exhaust features a full flow header merged into a tuned collector that pumps exhaust gasses into a 4.5” muffler, all of which is designed to make real world power. “It keeps exhaust gasses flowing at a high velocity.” The Monarch two-into-one also includes a removable sound insert to help tune sound and performance of the pipe. “This is a first for FireBrand and definitely ups our game in the high-performance exhaust market,” adds Hillegass. Available in black or chrome, the Monarch fits 2017-2023 H-D Touring machines and is available in 49 state legal or race only versions (CARB EO is on the way for dealers in California). FireBrand is distributed exclusively through HardDrive. See your WPS rep for more details, or click: firebrandmotorcycle.com
“It’s a big year for Atturo Tires,” said Atturo Tire Corp. Powersports Category Specialist, Collin Mikottis. “Our Trail Blade X/T SxS tires are arriving at Tucker dealers nationwide, soon to be followed by our Trail Blade BOSS SxS.” Earlier this year, Atturo announced an exclusive distribution agreement with Tucker Powersports. Tucker’s network of powersports dealerships now have immediate access to a full inventory of Atturo Trail Blade SxS tires. “Through our partnership with the action-packed UTV Takeover Tour, we’ll take our tires and exclusive Trail Hazard protection directly to the Side-by-Side community at the tour events,” said Mikottis. In the meantime, talk to your Tucker rep to get the holeshot on Atturo’s tires: atturo.com/product-category/trail-blade-sxs-utv
Hurricane hits ADV saddlebag market. The new Rigg Gear “rackless” stowage system is blowing the market away! Made from 100% waterproof heavy-duty UV-treated PVC tarpaulin material of which every seam has been electronically heat welded, its waterproof nature is guaranteed. The roll top closures with quick release buckles assure the contents will stay dry and dust free. The saddlebags can hold their shape when empty due to the removable internal stiffeners or can be compressed completely against the side of the motorcycle. Designed with a maximum capacity of 28 liters, the compression strap holds your gear tight. These saddlebags can mount to most Dual Sport, Enduro, Sport and Adventure motorcycles. See all the details here: www.youtube.com/watch?v=AmBvi9mpvNs
Former Kawasaki executive Yoji “George” Hamawaki passed away on April 18, 2023. Described as the Godfather Of Kawasaki, he is credited with being largely responsible for “Letting The Good Times Roll,” and establishing the Kawasaki brand in the United States. Not only did Hamawaki bring Kawasaki production to America, he helped shape models for the US marketplace, including the iconic Kawasaki H2 and Z1.
In 1966, Mr. Hamawaki and Mr. Iwaki established American Kawasaki Motors Corp. and began working closely with Alan Masek to develop the Kawasaki dealer network across America. With comprehensive policies, advertising materials (courtesy of Paul Collins) and service training. This partnership proved successful for the launch and long-lasting as Masek continued as a codistributor of Kawasaki for decades.
In fact, four of the first Kawasaki motorcycles (two 125cc B8s and two Meguro-built 53cc M5 Pet B53s) were purchased by Alan Masek Auto Supply Co. in Gering, Nebraska in 1964. With a Harvard law degree, a keen business sense and huge enthusiasm for motorcycling,
Masek went on to become American Kawasaki’s first general manager in California, where Mr. Hamawaki later served as president of Kawasaki Motors Corp., U.S.A. Together, Masek and Mr. Hamawaki helped chart the course that fully launched Kawasaki in America.
While building the dealership and sales network, Hamawaki and Masek also studied the consumer needs and model features and communicated that information back to Japan. That feedback was instrumental in Kawasaki launching the 1969 Kawasaki H1 and later, the iconic “New York Steak” 1973 Kawasaki Z1 900, which solidified Kawasaki as a superbike brand not only in America, but around the globe.
To further differentiate the Kawasaki brand from its competition, Mr. Hamawaki worked closely with his American team including Masek Distributing and Paul Collins to increase the brand’s marketing, promotion, and advertising. Kawasaki debuted the Let the Good Times Roll® advertising campaign and tagline, a theme that remains integral to the DNA of the Kawasaki brand.
In addition to establishing the Kawasaki brand to the U.S. customer, Mr. Hamawaki also established Kawasaki as the first Japanese manufacturer to bring an assembly plant to the United States creating Kawasaki Motors Manufacturing (KMM) in Lincoln, Nebraska. Kawasaki became the first foreign motor vehicle manufacturing/ assembly factory on U.S. soil with leading production and factory standards, low turnover and competitive wage rates. KMM began with production of the Kawasaki KZ400, Z1 and Jet Ski. KMM remains one of the largest private employers in Lincoln, Nebraska, to this day.
“Mr. Hamawaki was the foundation for the Kawasaki brand we know today, having pioneered the brand as the Good Times Company,” acknowledges Kawasaki Motors Corp. USA. “Mr. Hamawaki departed Kawasaki in 1978 and went on to become President of BMW Japan, President of Japan’s Digital Equipment Company and was inducted into the Japan Automotive Hall of Fame.”
Convinced that car sales in Japan could be much higher, BMW bought out the existing dealerships and started a full-scale Japanese subsidiary headed by Hamawaki. The brand building lessons learned from 14 years creating Kawasaki’s U.S. presence served him in good
stead. “Surprisingly the Japanese automakers were not marketing to this new and growing segment of individualists,” Hamawaki told Time magazine back in 1987. “We nurtured and stimulated this demand.”
His bottom line philosophy that originally let the good times roll in the American motorcycle market worked just as well in bringing BMW automobiles to prominence in Japan. “We welcome the competition because it generates interest in the prestige cars,” concluded Hamawaki. “The more they sell, the more we sell.”
Godspeed, Yoji Hamawaki!
For many years now the CARB and the EPA have been going after the motorcycle community for “violations” concerning clean air. If you don’t work in the motorcycle community, you may think this is no big deal, but the reality of these decisions is eventually going to be a big issue for ALL of the motorcycle community. Let me explain why.
Before I get into the details, I want to say something directly to the motorcycle community. Something that will make a lot of people angry. I’m okay with that because I am convinced that what I am about to say is 100% true: If you own a business that makes motorcycle exhaust, parts or accessories, and your business STILL resides in California, you are a big part of the problem! You have been paying into the same government that has passed an assortment of laws that have negatively impacted your business and
the community you serve. (Sorry, I have MANY friends this statement applies to.)
CARB (California Air Resources Board) and OEHHA (California Office of Environmental Health Hazard Assessment) the inventors of the Prop 65 rip-off, have developed some of the most ridiculous laws and regulations on the books. They lie, cheat and steal… and you support it by simply refusing to move. You dump all kinds of your money into the system that wants to crush you by paying for ridiculous compliance requirements as well as taxes to a state government that hates you. I have never understood this.
There are plenty of other states that would love to see a thriving motorcycle community, but you stay in Communistafornia because the weather is nice? So yeah, I don’t get it. And don’t tell me it’s because that is where the heart of the motorcycle community resides. We all have cell phones now. We are all connected. You don’t need to live in California to know what is happening in the motorcycle world. Sure, you will look a little out of place in some states wearing your flat bill hat and your knee-high socks, but people will get used to it. Trust me.
For more than 15 years this problem has been coming to a slow boil… and just like the proverbial frog in the pot, the motorcycle community has simply sat back and watched. Huge contributors to the motorcycle community have been fined ridiculous amounts of money for selling products these organizations deem “illegal”. In recent years CARB and the EPA have decided it was time to “cash-in” and go after the distributors and retailers that were selling motorcycle exhaust systems and other performance parts to the public. Now, many of the manufacturers are simply stopping production of all of these parts. Iconic companies like Vance & Hines are all producing “compliant” exhaust systems. Retailers are discontinuing entire lines of performance products all because of these “rules”.
The big issue being the motorcycle community has never been able to get together to really fight any of these regulations. They simply continued to sell product, pay the fines and allowed it to happen. They never united, and they never organized. There were few attempts but what was done really didn’t get the support it should have.
This is the same issue with Prop 65 by the OEHHA. I previously published an article about this ridiculous rule which can be found here: simplysoundconsulting.com/prop-65-what-is-going-on/
Both of these “rules” are nothing more than scams to make money for the state with ZERO real testing on the beneficial effect to the environment or the community. There is a ton of speculation out there, but no real proof of a benefit.
If the motorcycle community does not organize and fight this, we are going to have major issues! Imagine how fast things would change if the motorcycle community got together and decided not to sell any motorcycles or product into California? How long do you think it would take for the State to reconsider some of these regulations? Yes, I totally understand the financial risk, but what is the alternative?
It would great to see the AMA, MIC, Dealers, OEMs, aftermarket manufacturers and the automotive industry join forces to combat these regulations and come up with solutions that actually make sense for the environment.
Now maybe you think “Well, this is all because the people of California care about the environment and they want cleaner air.” I mean CARB literally stands for California Air Resources Board. This argument is utterly ridiculous. If you look at some world statistics you will see that US cities don’t even rank in the top 60 for air pollution — This is taking into account everything, factories, machinery, automobiles and motorcycles. More importantly, the countries that really contribute to air pollution, have ZERO intention of doing anything about it.
We are spending trillions of dollars cleaning air in one location, while other countries are spewing untold volumes of pollution into the air in another location. It’s likened to washing your hands with grease! Air Pollution is a world issue. We all use the same air. Our government is in the business of selling pollution permits to factories generating more revenue in the name of clean air, and it’s all bullshit. Getting paid does not clean the air. Go to China and see what they are doing for pollution. Let me tell you, absolutely nothing, and they aren’t even in the top 10 pollution contributors.
Here are some numbers to prove my position on this subject: There are only 8.6M registered on-road motorcycles in the USA compared to 286.9M cars and trucks. Out of those 8.6M motorcycles, 90% of them are ridden less than 5,000 miles a year. Cars are driven for an average of 13,500 miles per year. Motorcycles have very little effect on clean air, but they generate enough money for CARB and the EPA to take notice. It’s simply an easy way for the government to make money.
Eventually we will end up like the car industry, and I understand a portion of that. The real issue here is the hypocrisy of it all. All these regulations do not help the environment unless everyone is forced to do them. If people can pay their way out of having to abide by the rules, then the rules should not exist. At that point it becomes a scam. If the people making the rules cannot clearly define the rules, then it is a scam. Ask the OEHHA how to “prove common use” of a product sometime. I spent 3 hours on the phone with them and could not find one person that had any answers at all. They spent more time dodging the questions because they knew they had no answers.
Over the past 15 years, CARB and the EPA started fining retailers, manufacturers and distributors of exhaust parts millions of dollars in fines. Many of the existing exhaust brands have already switched to fully compliant exhaust
systems in response to the fines or the fear of being fined. This is a big problem because this means CARB has proven their business model. Now they know they can force everyone into line and make a ton of money doing it. The EPA has also taken notice, and now they have started to make some new regulations. You will be paying for stamps, inspections and other nonsense all in the name of clean air that will never come to fruition.
Typically, consumers don’t want compliant exhaust systems. Why are you going to replace your shitty stock exhaust with an expensive shitty compliant exhaust? Yeah, it may look better, but it is still going to be very expensive, it will be very quiet, it will offer a poor performance benefit (if any), and it will still be heavy as hell.
It’s also important to note that these companies are being fined for the actions of THE CLIENT. The exhaust systems say “for competition use only” and the manufacturer has zero influence on how the customer actually uses the product. Imagine if we fined all the car companies every time a car was used in a crime? How about fining a pharmaceutical company when a patient abuses a prescription? (notice I said “fine” not to confused with “sue”).
In the end all of this will culminate into a complete inability to buy or install performance parts for your bike. No more exhaust systems, fuel tuners or air cleaners. No more highhorsepower applications for any streetbike simply because California (a state you may not reside in) says so. If you think I am wrong on this, why do we see prop 65 warnings on every product you buy now? Personally, I really don’t care what the State of California thinks about anything I buy.
If the aftermarket produces performance products that do work and meet the new standards, they will need to have an excessive amount of R&D funding to produce these parts. This will eventually translate to much higher prices. Which will translate into zero sales and a dying industry.
The exhaust category is by far the top selling category for aftermarket motorcycle parts. This means a huge decrease in revenue for the companies selling to the motorcycle community. This will eventually equate to higher prices on everything else to compensate for the dramatic loss to the bottom line. Not to mention that many motorcycle exhaust brands actually produce product in the USA. You can kiss those jobs good-bye too.
It’s a rapidly changing world that we live in these days. If we continue to stand by and let things happen, it’s simply just going to get worse until we are all cooked!
Sources:
www.iihs.org/api/datastoredocument/bibliography/2225 financesonline.com/number-of-cars-in-the-us/
Industry veteran Lowell Anderson established Simply Sound Consulting to be just that. Our approach is simple. Real solutions that deliver real results. No smoke and mirrors and no acronyms to make ourselves sound intelligent. We bring experience and practical solutions delivered through clear communication to help you succeed. simplysoundconsulting.com
