Dealernews Issue#6 June 2020 by Dealernews

DN 2.0 #6

MOTOAMERICA RACING RETURNS Sans Fans

OEM UPDATE

Triumph Trekker Shocker

SHOP PROFILE

Boyko Racing

COVID CAVEAT

Remember Margin Is Where The Money Is

CONTENTS 04 WORLD’S LUCKIEST MAN 06 EDITORS NOTE

Bob Althoff On The Lone Ranger Robin Hartfiel On A Funny Thing Happened On The Way To The Gallows

08 LETTERS+ 10 NEWS+ 13 SPLASH+ 14 SHIFTING GEARS+ 18 DEALER PROFILE+ 22 SURVEY SAYS! 24 DEALER SUPPORT 26 INDUSTRY RESEARCH+

The Industry On Dealernews Non-COVID News For A Change Yamaha Runs Away With PWC Picks Getting Back To Work

Behind The Mask With Boyko Racing National Powersports Dealer Association Next Steps

Looter Insurance & MIC Efforts Dr. Paul Leinberger On Reimagining The Next Normal

28 INDUSTRY RESEARCH+ 30 INDUSTRY RESEARCH+ 34 COVID CAVEAT 37 eDEALERNEWS 38 OEM UPDATE 40 CURRENTS 43 SHOWTIME+

Lenny Sims On NADAGuides Numbers Don Musick On The Search For Waldo Margin Matters

Shocking Developments

Triumph Trekker Set To Shock U.S. Market Watts Up?

REVVtalk Virtual Conference, MotoAmerica Returns Sans Fans

Photo by Jeff Barger

18 2

OUR TEAM Bob Althoff W.L.M.

44 46 OPINION+ 50 NORTHERN EXPOSURE 52 OPINION+ 54 PERSONNEL FILEs PERFORMANCE+

Mark Rodgers On The Single Worst Mistake You Are Making Right Now! Bill Little On Shopping Carts & Humanity Marq Smith On Controlling The Sale, Part II Larry Daniel On Making A Case For Disruption, Part II Alex Baylon On Cops & Christmas Miracles In June

56 CONFESSIONS OF A CUSTOMER 58 DIVERSITY+ 60 MIC RIDE REPORT 62 ADVOCACY+ 64 WÜNSCHISMS 66 GEAR+ 70 PRESS PASS+ 76 OPINION+ 78 PARTING SHOT+ 79 AD INDEX 80 VALE+

Eric Anderson On Death Of A Salesman Alisa Clickenger On REVVtalks

What Does The MIC Do For You? Don Amador On Masking Up!

Uncle Paul On Being A Bear

The Face Of Retail. Masks, Splash Guards and more, Part II

MotoAmerica RoadRacing Returns Anonymous Dealer On OEM DSMs

Charlie Williams On Rubbing Weenies

EDITORIAL Robin Hartfiel Editor Gus Stewart Creative Director Brenda Stiehl Production Manager CONTRIBUTORS Don Musick Genesys Technology Solutions Dr. Paul Leinberger Denny+Leinberger Strategy Eric Anderson Vroom Network 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 Dealer Advisory Board Bob Althoff Chairman Joey Belmont Big #1 Sports Jim Boltz Lynnwood Cycle Barn/WMDA Jim Foster Killeen Power Sports George Gatto Gatto Harley-Davidson Malcolm Hunter Deeley Harley-Davidson Robert Kay Star City Motorsports Bob Kee Destination Cycle Jerry Lenz Beaverton Motorcycles Kurt Mechling Performance PowerSports Don Owens Dothan Powersports Mark Peterson Southwest Superbikes Sandy Stroope Boat World Honda Polaris

This issue Brought To You By… Ave Atque Vale RK Stratman

ADVERTISING John Murphy Publishing Consultant johnmurphy@dealernews.com Tigra Tsujikawa Sponsorship Manager (949) 861-0863 tigratsujikawa26@gmail.com Blake Foulds Account Executive (760) 715-3045 Blakefoulds@dealernews.com

JUNE 2020

World’s Luckiest Man By Bob Althoff

WHO WAS THAT MASKED MAN?

Even The Lone Ranger Needed A Sidekick

here are immense benefits to being an independent dealer. We call our own shots. Hopefully, our decisions are based upon our customers’ needs and what they are willing to pay for. Our “independence” is ironically a dependence on retaining our satisfied customers. As a boy, I marveled at the Lone Ranger. Over the span of eight years and hundreds of lawless encounters, the Masked Man saved the day. ABC had a hit series, and the good guy always won. Well, the back story was that the Lone Ranger was one of a patrol of six Texas Rangers who were massacred, with only one member surviving. A silver mine provided our hero with his horse’s name, his signature bullets and presumably some cash to finance his wandering around the Old West. Oh, wait. It turns out the Lone Ranger wasn’t so “Lone”. And neither are you, Kemosabe. He lost five comrades along the way. So, too, have you and I lost fellow dealers along the way.

And then there was “Tonto” — Jay Silverheels — the ever-faithful companion, who ended up being crucial in saving many days. In fact, as I recall, Silver, the horse, also pulled the bacon out of the fire more than once. Which brings me to ask you, “Who is your ‘Tonto’? Where is your white horse? As an independent dealer, what silver bullets do you possess?” It’s dangerous out there in the Wild West of powersports land. Who has your back? Dealernews has been holding a weekly ad hoc conference call of industry leaders to explore the idea of (finally) pulling together a National Powersports Dealers Association. All have acknowledged the need for such an association. All have wondered how it can be that we 7,800+ brother-and-sister dealers have survived this long without the goods and services that thousands of other industries enjoy through their own industry associations. Now it’s your turn to weigh in! Do it for the brethren we lost along the way. Do it for the customers we are all dependent on. Since the prime purpose of our association is to allow us to achieve retail excellence, do it for yourself! You deserve all the help you can get. Dealernews will always strive to be your faithful companion. The horses we ride may be somewhat different, and silver bullets are hard to find. We sure as hell haven’t secured our own silver mine as yet, but we all need to cover each other’s back. At the end of each episode, the clarion call from the Masked Man was a hearty “HI HO, SILVER!” I never thought of that note as the end. I knew that we would ride again next week. We will, won’t we, Kemosabe? Bob Althoff, World’s Luckiest Man

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To put this in perspective, the value of the powersports industry in America is a $39 Billion, driven largely by new unit sales. According to MIC’s Statistical Annual, there were 533,000 new motorcycles sold in 2018 by approximately 7,800 franchised dealerships, employing more than 74,000 Americans. There were 3.8 motorcycles in use for every 100 persons living in the U.S. and female ownership more than doubled from 20082018. Prior to the pandemic, the powersports industry was on track to show modest growth in key segments such as dual-sport motorcycles and off-highway new unit motorcycle sales on par with Q1 2019. Total volume for all sectors was expected to be +/-138,000 units. Then the COVID-19 closure hit and the industry was left facing dire prediction that unit sales could drop 40% and we could lose as many as 30% of the franchised dealership rooftops.

Editor’s Note By Robin Hartfiel

A FUNNY THING HAPPENED ON THE WAY TO THE GALLOWS Some Dealers Missed The Memo

e are all sick of the COVID-19 headlines. The stories of businesses that will never return, unemployment numbers that rival the crash of the Great Depression and countless people who will have to change their entire way of life because of the “new normal” — God, I hate that term. The nightly headlines seem more akin to the Vietnam era body counts than an objective look at the news. Talk about dead man walking…

However, the motorcycle market didn’t get the memo! As the original social distancing device, complete with face covering helmets and gloves as the standard gear, motorcycles, particularly small displacement off-road machines have seen a huge surge in popularity. Thanks in large measure to the MIC getting motorcycle dealers added to the “essential” operations list, sales for some dealerships increased 30% or more in April alone, while still alarmingly high, the loss of rooftops has been substantially less than the initial projection. In fact, year-to-date powersports sales are better than they were in the past three years. MIC President and CEO Erik Pritchard used the forum provided by the first virtual Communications Symposium to explain a chart showing combined new-unit retail sales for powersports vehicles among most of the leading brands, plotting the first four months of each year from 2016 to 2020. “In the first four months of 2020, it’s the second-best performance only to 2016, in the midst of a pandemic, in the midst of really high unemployment,” Pritchard said. “And so, if your dealership has had a surprisingly good four months, you’re not alone.” MIC shared the counterintuitive boom in business at length during the first of the now monthly Communications Symposiums online:

One problem… somebody forgot to tell motorcycle dealers!

https://www.youtube.com/watch?v=c778qpGC7ME

Contactless curbside service, online concierges, driveway delivery and dozens of other creative alternatives resulted in some good news for a change. While you won’t see it on the nightly news, and completely counterintuitive to the “real” world, some segments have not only survived the pandemic, but actually thrived. “The COVID has put more people on dirtbikes than anything since On Any Sunday,” says Teddy Boyko in this month’s shop profile. His grand opening was literally the day the state shut-down… and yet business has literally climbed every single day since.

Now the problem is a serious lack of inventory. With the majority of the OEMs shutting down all production, inventory has reached record lows. National Powersports Auctions has reported record prices at action for the past 90 days, even in excess of book value. See the complete recap here:

Boyko, and last month’s dealer profile subject Don Owens, are not the only ones to see surges in sales and service work. New off-highway motorcycle sales were up 18.9% January through March of 2020 according to the Motorcycle Industry Council Sales Reporting System. The Retail Sales Report gathers new motorcycle retail sales data from the 14 leading OEMs in the U.S., which provides a credible and quantifiable indicator of sales trends to back up the anecdotal information from Boyko Racing and Dothan Powersports.

https://www.youtube.com/watch?v=CAqOgEnwJ We are not out of the woods yet, not by a long shot. But we are seeing a return of roadracing, surging side-by-side activity, the aforementioned dirtbike boom and other silver linings. As a card-carrying member of the media, my advice to you is to stop watching the headlines and turn your attention to creative ways to continue bolstering the bottom line. Former Editor-in-Chief and publisher of Dealernews circa 19902003, 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.

Shaun Jackrel, Owner Jaguar Power Sports Jacksonville, FL https://jaguarpowersports.com/

HOW DO WE EXPLAIN THIS? Moving from COVID to Riots… how do we explain that to our grandchildren? How are things in SoCal for Dealernews? Thank you for featuring Kodlin USA and keeping some constancy in these crazy times. We have more in stock in the U.S., including a front fender for HD Breakout models. Hope you will be able to run it. Holger Mohr Kodlin USA E-mail: info@kodlinusa.com https://kodlinusa.com/contact-us/

Hey Shaun that was former Dealernews columnist Jim Rasmus from Retail Design Associates: http://www.retaildesignassociates. com/comques.html Retail Design Associates 4623 Durham Road Rocklin, CA 95765 (800) 722-4922

ELECTRIC MOTION POISED FOR U.S. LAUNCH EM eTrials Bikes Page 38

COLLABORATIVE EFFORT

Super73 Teams With PeopleForBikes Page 40

TARFORM’S TALE OF TWO WOLVES

Which One Will You Feed? Page 40

ON ANY SUNDAY RIFF Love the intro music from OAS for the interviews with Justin Leineweber on King Of The Motos! Justin’s Dad Jim Leineweber is actually in the movie, the slow motion drag race scene where his feet are on the rear set pegs just as the tire is smoking. Paul Golde, Senior Product Planner Kawasaki Motors USA Foothill Ranch, CA

AWE, SHUCKS! I want to thank Robin Hartfiel and the entire crew Dealernews for their support and help launching our new entity Central Powersports Distribution! The response from dealers and industry people has been beyond positive despite the world environment and Dealernews is the best source to follow what is happening in our industry! https://lnkd.in/esv787p

WHO WAS THAT MASKED MAN? At the AIMExpo last year there was a person who spoke about retail store design… we have a new large store and I was wondering if you knew the contact info?

GET A JOB! Over two months ago, things felt really uncertain and scary for our Powersports Industry. We were all hopeful and optimistic that we would even get through it still standing. After a shaky few weeks, something really awesome started to happen. Dealers across the nation found themselves busy. And not just a little busy but a lot busy. Week after week this continued to happen and even start to build. Some of these dealers were happily surprised to have record-selling months. As the world seems to be relaxing and getting back into the swing of things, the powersports industry is already on the gas. There are a lot of great jobs that are getting uploaded every day on the MIJ site. Make sure to update your profile and sign up for text message and email alerts. When your future job opportunity is posted on our site, we want you to get notified immediately. We appreciate your support and are here to help if you need. Feel free to email or call if you do. Thank you, Alex Baylon, Founder MotorcycleIndustryJobs.com Carlsbad, CA www.motorcycleindustryjobs.com

Thanks again! #dealers #powersports #industry Mark Berg, Head Of Operations Central Powersports Distribution Waterton, SD https://cpd.direct/ WHAT HAPPENED TO PRO MOTO BILLET? Hi Dealernews! I’d love to connect with you all. We’re still making some great American-made products with the Fastway (Moto) and Sector Seven (UTV)

brands, and would love the opportunity to share our business happenings, new product releases and contribute to any editorial that may benefit your readers. I look forward to hearing from you. Danny Adair, Marketing Fastway/Sector Seven Nampa, Idaho https://fastway.zone/ Pro Moto Billet started life as a division of Production Automation Inc. in 1997, when founder Lynn Hodges wanted a better way to haul gear on his XR600 than wearing a backpack. Between automation jobs Lynn spent his time designing the first billet aluminum cargo rack. When it was finished, he loved the way it looked and functioned so much so that he continued to design cargo

racks for other models… and Pro Moto Billet was born. Early 2004 brought new demand for motorcycle products so the motorcycle division of Production Automation Inc. split oﬀ from its parent company to officially form Pro Moto Billet Inc. In August 2006, Pro Moto Billet acquired Fastway Performance, a company with a worldwide reputation in the industry.

DOTHAN DOES IT BETTER! Thanks so much for the great article you wrote for Dothan Powersports. I greatly appreciate the way you presented our business. It was a true testament to our past, present and future. Again, thank you. Don Owens, Dealer Principal Dothan Powersports Dothan, Alabama https://www.dothanpowersports.com/ READ THE FULL STORY IN ISSUE #5

SOUND OFF! Dealernews is indeed back. Join in the conversation via e-mail: Editor@dealernews.com Check us out on Instagram: https://www.instagram.com/dealernews/ Like us on Facebook: www.facebook.com/DealernewsFan/ Follow along on Dealernews.com Tune into the new YouTube channel: www.youtube.com/channel/UCZE6q4gQ5EIz0nOX4WaXw1w

BRUCE BROWN BIO PIC

END OF AN ERA

Romaha Rides Off Into Retirement After Five Decades Of Serving Dealers In its customary low-key, personal attention approach, Romaha Importers & Distribution, Inc. simply sent out an e-mail to its suppliers and dealers announcing operations were shutting down. In case you haven’t heard, or didn’t get the e-mail, Romaha closed its doors on June 26. “We truly appreciate everyone who we have done business with over the past 47 years,” says Robert Solarski and Mark Levin. “Whether it was last week, or 40 years ago, we want to thank everyone for looking to us as an option in the world of multi-warehouse nationwide companies. “Thank you all, be well, and ride safe!”

What better day than the Summer Solstice to announce that the much anticipated movie project A Life of Endless Summers: The Bruce Brown Story has entered post-production and will make its premiere at the Newport Beach Film Festival, just down the road from his old Dana Point stomping grounds. If you can’t make it to the red carpet roll out, 1091 Media says the film will be available digitally August 18th. It’s the year 1962. Bruce Brown, an ambitious young filmmaker has an idea for a new project — The Endless Summer. The concept: Follow the summer season around the world with two surfers on a quest for the perfect wave. As it turned out, Bruce was on to something. Not only did the film become a hit, it earned a cult following, became the most successful surf film of all time and arguably made him the founding father of action sports films. The documentary is directed by second generation, award-winning filmmaker Dana Brown. Dealers may have seen some of Dana Brown’s previous projects like Dust to Glory, On Any Sunday: The Next Chapter and Dust 2 Glory. He says A Life of Endless Summers is the story of a man, a father, a husband, a filmmaker, a pioneer, a legend. See the trailer here: https://www.youtube.com/ watch?v=Uy3rglg6jIg&feature=youtu.be

STURGIS SEEING 2020

Rally Is A Go For 80th Anniversary After an 8:1 City Council vote, the 80th anniversary of the quintessential American Motorcycle Rally is a go! There will be some “modifications” to the festivities, but the ride to the Black Hills is back on the summer schedule for many. The Buffalo Chip responded by immediately announcing 7 more bands to its schedule of activities. The Reverend Horton Heat, ZZ Top, Buckcherry, Ratt and Black Label Society join the Chip’s list of headliners. There will also be pro boxing, Hooligan racing and more to be announced in the coming weeks. However the City of Sturgis itself is scaling back. “There’s not going to be a lot of the usual public activities, including the opening ceremonies, the B1 flyover, different contests and activities and parades and things that we usually do during the Rally,” said Sturgis City Manager Dan Ainslie. “if you see any of the photographs of previous Rallies, there tends to be thousands of people lined on the Main Street. We’re trying to avoid that.” Sanitary measures will be increased dramatically, including adding multiple hand sanitizing stations throughout the city. They will also be disinfecting sidewalks every night. And there may be even more precautions added, according to the city leaders. “If conditions change over the next seven weeks, the mayor has the right to make necessary adjustments up to and including the cancellation of the Rally entirely.” But for now, the 80th Anniversary Rally is set to run Friday, August 7 through Sunday, August 16, 2020.

INTERMOT 2020 OFF

German Trade Show Succumbs To COVID-19 International time zones being what they are, almost simultaneously with the good news that the Sturgis Rally would take place as scheduled, Koelnmesse has announced INTERMOT Köln has been cancelled for 2020. “Koelnmesse took this decision in the interest of the health of our exhibitors and visitors. Major events such as INTERMOT draw tens of thousands of visitors on all days of the trade fair; the hall space is limited and the time available is short,” explained the show organizers. “Spatial proximity and the shared experience of the trade fair form an integral part of the character of this event. At this point in time, the specifications currently in effect cannot be met at major events. This is compounded by uncertainties on the part of numerous customers and the complicated travel situation. We regret that the overall situation leaves us no other choice.” The next trade show “will incorporate more hybrid elements to supplement the on-site experience with added digital reach. We have hosted digital formats in planning that will present vehicle manufacturers’ world premières for the 2021 season, together with innovations and industry news from the parts, accessories and apparel segments.” “All of the digital INTERMOT events are scheduled for the end of 2020 and will be broadcast as news streams to the global motorcycle community. We look forward to continuing our trusting cooperation with you at the next INTERMOT 2022.” The next INTERMOT will be October 5-9, 2022 in Cologne. In the meantime, INTERMOT updates are here: https://www.intermot-cologne.com/

JUNE 2020

In a filing with the commission, Mahindra said its new models aren’t in violation, and that Fiat Chrysler is trying to grab “a practical monopoly over the import and sale of components used in any boxy, open-topped, militarystyle vehicle.” More on Mahindra’s position can be found here: https://www.roxoroffroad.com/mahindramedia-statement-itc-matter-fca

FIAT VS. MAHINDRA

Jeep Trade Dress Battle Continues Claiming that ROXOR is a “nearly identical copy” of Fiat/ Chrysler’s Jeep, particularly the “boxy body shape with flat-appearing vertical sides and rear body ending at about the same height as the hood,” FCAI took Mahindra Automotive to court. The International Trade Commission upheld, with modifications, a judge’s finding that Mahindra’s off-road vehicle is a copy of the Jeep. Trade Judge Cameron Elliot in November found that the ROXOR would infringe the trade dress of the Jeep as defined by six specific design elements, but not the registered trademarks for the Jeep’s front grille. He recommended that the commission block imports of the ROXOR kits and components, saying Mahindra is purposefully trying to evoke the Jeep image, which would erode the value of the Wrangler. Both sides asked the commission to review the portion of the decision they lost. Mahindra said in a statement that the vehicle subject to the ITC action is no longer in production and the 2020 design was refreshed. “The company and Mahindra Automotive North America... remain resolute in its position that the ROXOR does not dilute or violate Jeep’s trade dress,” says Mahindra’s official statement, adding it was weighing options with respect to an appeal during the review period or in federal appeals court. FCAI said in a statement it was pleased with the decision and that the Italian-American automaker reserved further comment while it studied the ruling. Never mind the fact that Mahindra has produced essentially the same boxlike vehicle for more than 70 years going back to WWII?

BULLSEYE FOR BRP

On Target With 3X Red Dot Winners What BRP starts the summer with three prestigious Red Dot Design Awards. “We are passionate for innovation and determined to push the limits at every new product launch, thanks to the combined efforts of BRP experts from different departments,” says Denys Lapointe, BRP’s Senior VP, Design, Innovation and Creative Services. The winners are: -Can-Am Spyder RT 2020 -Rotax Sonic E-Kart -2020 Sea-Doo GTI “These three awards are the result of a team effort. Every year, we strive to go further in terms of design and technology. I hope that next year we will even go beyond aiming customer and industry expectations”, Lapointe adds. However this is nothing new, over the past two years, BRP has received a total of 22 design awards for its innovative products! The Red Dot product design awards focus, among other things, on the design quality and innovation potential of the products submitted. The laureates of these awards are cutting-edge products that set trends and pave the way for the future. Red Dot’s panel of approximately 40 experts carefully evaluates them to choose those that merit the distinction. For more information on BRP’s 2020 Red Dot design awards, visit: www.brp.com

YAMAHA RUNS AWAY WITH AWARDS

WaveRunners & Bowriders Bag Top Honors The editors of Boating magazine named Yamaha’s EXR WaveRunner one of their “Greatest Boats Under $20,000” — quite a coup for a PWC and a great gateway to the boating business. Here’s what they had to say: “Under $10,000, but delivering speeds exceeding 50-mph and capable of handling a crew of three, this Yamaha WaveRunner could be the path to the water for a boating family.” But wait, there’s more for Yamaha’s WaterCraft division! Boating Industry magazine announced Yamaha’s 19-foot 195S bowrider topped its “Top Products For 2020” list. “Creating a 19’ bowrider with the incredible amount of premium features found in Yamaha’s newest jet boat is quite the task and the team

at Yamaha knocked it out of the park on the 195S,” said Boating Industry managing editor Adam Quandt. “From a stylish tower to a new control system and so much more, it was clear that no detail went unchecked when designing this boat, something not always found in smaller boats. The Yamaha 195S is sure to provide endless opportunities for comfort, fun and reliability on the water.” According to Yamaha, the 195S widens Yamaha’s sales leadership by offering the first premium 19-foot jet boat that looks and feels like Yamaha’s prestige models that include the 21-foot 212S, 24-foot 242S and 27-foot 275SD, but still priced under $40,000 with trailer. Setting the 2020 195S apart from Yamaha’s other 19foot bowriders are next-level premium appointments, including an aluminum tower featuring a CNCembossed logo on the structure, a more extensive 7” Connext control system with maps and an upgraded Wet Sounds speaker package. Also included are premium Marine Mat flooring, a co-captain chair, docking lights and a Fusion Audio stern stereo remote.

JUNE 2020

Brought To You By MotorcycleIndustryJobs.com

SW-Motech opens its new U.S. distribution digs in the Pacific Northwest and brings on industry veteran Sarah Schilke to head up operations. Based in Portland, Oregon, SW-MOTECH USA started serving dealers in June. Schilke’s extensive experience in the marketing and sales of German engineered products, most recently BMW Motorrad, make her uniquely qualified for the role. “We are proud to extend our business operations to the United States and offer our full product line to riders throughout the country,” says Jürgen Swora, CEO of SWMOTECH USA. “With Sarah at the helm in a city densely populated with passionate motorcyclists and surrounded by some of the country’s best motorcycle roads, we know this will be a win for SW-MOTECH as well as for riders and dealers in the Pacific Northwest and all of the U.S.” Also joining the team is Quentin Wilson, formerly service manager for Ducati and Alta Motors, to provide customer and dealer technical support. Christian Hansen, former NW Sales Manager at Alta and Speedymoto will be responsible for dealer sales. Current SW-MOTECH dealers can continue placing orders with Twisted Throttle LLC on the east coast, which has been a trusted SWMOTECH partner since 2002.

British Dealer News (no relation to Dealernews) suspended publication at the start of the COVID-19. After a month and half of lock-down editor Paul Smith has opted to retire. “Having been furloughed for more than five weeks, I have now retired as editor of British Dealer News. As you know, publication of the magazine is suspended and I have not been receiving office emails so I am taking this opportunity to thank everyone who has contributed over the past six years, many on a regular basis and many who have become friends. I hope the coronavirus crisis passes soon and the motorcycle industry is able to return to normal, a new normal where more people take to two wheels. Cheers, Paul!”

The name rings a Bell… Helmet segment stalwart Luke Brady has been named National Sales Manager, Powersports for Bell Helmets. “I am excited to have Luke running our US powersports sales,” claims Ric Kern, Bell’s VP and GM. “He has been with Bell for many years, has built strong relationships in the industry, and has done a fantastic job of growing our powersports business.” Brady has been with the Bell sales team for nearly 9 years and has been instrumental in expanding Bell’s domestic business. Over the past 6 years, Brady has managed 31 Independent Sales Reps and Sub Reps nationwide, while supporting business development initiatives — resulting in an increase of new dealers by 20%. Old timers may remember prior to joining Bell, Luke was Regional Sales Manager for Scorpion Sports, Inc.

Dorfmeyer done with Tucker, but not powersports. “In August of 1983 I started working for Rocky Cycle,” says veteran rep Rick Dorfmeyer. “In 1986 it became Tucker Rocky. A few short years later we were an LDI company… Then MAG. Now after nearly 37 years of a fantastic challenging rewarding prosperous career with a great group of amazing people, I am pondering my next step.” Dorfmeyer, was among the people not brought back after the COVID-19 furlough. “Tucker has been great to me. The best part has been the people. Retirement is not for me, so keep your eyes peeled for whatever is next!”

Also moving on from Tucker is JJ Pecsok, now the Western US Regional Sales Manager at Hisun Motors Corp., U.S.A. Before teaming with Tucker, JJ was a sales rep for Fox, where he was recognized for his ability to lead dealers in maximizing their revenue. Much of his perspective stems from the time Pecsok spent in a dealership, managing the parts and accessories department for Woods Fun Center in Austin, Texas. Paving the way to his professional career path was Pecsok’s illustrious amateur

Continued on page 16

Brought To You By MotorcycleIndustryJobs.com Continued from page 14

motocross career, which earned him several national championships. This segued into his tenure as an AMA Pro Motocross and Supercross competitor and solidified his life-long passion for the powersports industry. “Day 1 — I’m happy to announce I’ve joined Hisun. I’m excited for this next step in my career and to be a part of Hisun’s growth. I am looking forward to helping better service our dealers and consumers. The next chapter starts today!”

Taz Sobotka, former EVS Sports Brand Manager, makes his return to EVS after having gained a wealth of experience from his most recent stint at Tucker Powersports. “EVS Sports has been a mainstay in motocross protection since their inception and I’m excited to have the opportunity to not only return to work at EVS, but also have the unique opportunity of taking such an iconic brand in the industry to the next level,” says Sobotka. “I can’t wait to get to work with the already fantastic EVS team and strive towards enhancing and improving EVS in every facet.” EVS SVP Todd Lentz adds, “I couldn’t be more excited about having Taz back on the team. His skillset, talent, reputation, passion and business acumen speak volumes. I am convinced that nothing we do is more important than hiring and developing the right people. There is no doubt in my mind, we have a winner!”

Lucas Oil Products, the California-based distributor and manufacturer of motor oils and additives, announces Morgan Lucas, Senior VP of Lucas Oil Products and son of Forrest and Charlotte Lucas, will take over as President of Lucas Oil. “I have watched my father and mother work tirelessly and make countless sacrifices to take Lucas Oil from its modest beginnings to grow it into the thriving enterprise that it is today,” says Morgan. “The mission they have instilled has always been to exemplify hard work and integrity through the creation of high quality, problemsolving products with an unwavering commitment to customer satisfaction.” In his new position as President, Morgan will report directly to his father, CEO Forrest Lucas. “I could not be more proud of the professional Morgan has grown up to be, says Forrest. “He has worked his way to the top of this company from the ground up and truly showed his potential to us since day one. He’s earned the respect of his teammates, and he’s definitely earned mine.”

Auction action! Dealers in Wisconsin, Minnesota, Iowa, Nebraska, North Dakota and South Dakota are now being served by industry veteran Mitch Winder, National Powersport

Auctions’ newest regional sales manager. “Mitch is a proven professional with an impressive resume within the powersports industry, making him an ideal candidate for the position,” says VP of Sales Mike Murray. “Not only does he have the experience to back him, but he also has the passion. He’s a motorcycle guy through and through.” Having started riding in 1969 aboard a Honda Mini-Trail, Winder’s love for two-wheels runs deep. “I live and breathe motorcycles, mainly off-road and adventure riding, so to be able to combine my hobby with my work was a natural transition.” Winder has helped build and manage several territories throughout his 20 years in the industry, so he’ll be able to immediately offer reputable guidance to dealers. “I’ve worked at a dealership as a parts and sales manager, been a brand manager for Parts Unlimited/Drag Specialties, as well as supported dealers as a Sales Rep for WPS and Scorpion USA.”

Seems like yesterday Tracy Motz joined REV’IT Sport as Sr. Brand Marketing Manager for North America, but it has been six years! “On my last day at REV’IT! Sport International, I look back with such deep gratitude for having been part of an industryleading team that values authenticity, always looks for the “yes” before the “no” and never writes off anything as too big, ambitious or impossible to achieve.” However she is not leaving the Big Apple as she has a sweet deal with NYC snack maker Belgian Boys. “Starting June 1, I’ll join the team at Belgian Boys as the Head of Marketing, and look forward to taking these values with me into a brand new challenge. Thank you to all the motorcycle industry colleagues, industry partners, collaborators and friends who have been part of the adventure these past six years!

Photos by Scot Cox

BOYKO RACING The Man Behind The Mask By Robin Hartfiel

ed Boyko has been masking up at work for awhile now… More than 45 years! After a promising career as a minibike racer, including a factory Indian ride, was cut short by a serious crash, he starting turning wrenches, first at the legendary Hacienda Honda in 1971 and then for top pros of the day including Mike Brown’s factory Indian mini, Bobby Jones, Jimmy Holley, Bob Hannah, Ricky Johnson and Broc Glover. In fact, a Mike Bell DG Yamaha was on one of the lifts the day Dealernews dropped by to see how Boyko was handling the COVID. He says things really started rocking since the pandemic rolled out. For the past decade, Boyko had been practicing his craft at his shop in Costa Mesa, but finally decided to invest in a new operation closer to home in Laguna Hills. After moving his mills, lathes, presses and heavy duty machinery everything was set for the Grand Re-Opening on March 7th… the day Southern California shut down because of the COVID-19 closures. Bummer right? “It was definitely a plus for me,” he exclaims. “On March 7th the dirtbike industry went through the roof! Best thing possible for my business,” counters Boyko. “People are hunkered in their homes, tied up and spun out by everything

that’s going on. Now Mom & Dad have got the kids tearing their motorcycles apart. Now people are sending jobs in from all over the country and it has been great.” In fact, business has been too good. “I have depleted most of the parts on the shelf from all the distributors, but hopefully the manufacturers and distributors will get back to work soon and we will all be where we need to be,” adds Boyko. In the meantime, he is taking a hit on having to source some

high demand items, particularly pistons and top end kits for 2-strokes and a surprising run on cranks. “I got more cranks last week, in a single week, than I’ve ever gotten… by far!” “I’ve been working with the owner of L.A. Sleeve for 40 years, and they said since basically March 7th their phones haven’t stopped ringing either,” Boyko claims. “They do the same thing I do. People are hunkered down in their houses and they are getting cranky! I’m shipping out cranks all over the place. Joe Blow is hunkered down in his house and he’s never split cases in his life. Now he’s doing it and sending it all to me. I handle all the other shops in town on top of that. From mom-and-pop shops to big, multi-line dealerships, I do all their stuff.” PAY DIRT! The MIC’s report that new off-highway motorcycle sales were up 18.9% comes as no surprise to Ted.

Boyko Racing specializes in porting, boring, crank rebuilds, top ends, wheel truing and lacing and everything in between. Roadracing, dirtbikes, ATV/UTV, vintage restorations, two-stroke, four-stroke, watercraft (he was fabricating PWC parts from the time Clayton Jacobs was launching the prototype Jet Skis), Boyko can make it better. Continued on page 20

“Since the 7th I’ve seen nothing but wide-open work in every aspect of business.” ATV/UTV/PWC — it is all going off according to Boyko, especially dirtbikes. “The COVID has put more people on dirtbikes than anything since On Any Sunday!”

Continued on page 22

JUNE 2020

Continued from page 19

“We do quite a bit of work for the industry, including the MIC, dealerships, race teams and OEMs, but the main thing these days is dirtbikes… dirtbikes are my cup of tea.” SOCIAL DISTANCING Part of the Grand Re-Opening strategy was to fly solo. That means the porting expert, shipping and receiving clerk, janitor and night watchman are all the same guy. “I even do my own billing,” Boyko says. “The only thing I don’t do is the books, my wife handles the books… thank God I have her to do that.” But other than that, he does all the business himself, milling, machining, balancing, truing… everything! “There is enough work for 10 people, but it is more efficient to keep everything under one roof and do it all myself. This way I can control everything that is going on and there is only one person who can be blamed for any mistakes… you’re looking at him!” “Back in the day when I had employees it was always a problem taking care of the guys, making sure everything was done right. I had to worry about quality control issues and look of their shoulders all the time… since they’re gone, it’s all me and I am loving every minute of it!” “Having everything done under one roof by one guy is social distancing at its best,” he chuckles. 50/50 Boyko’s unique skill set results in a blend of customers. “I would say it is half retail customers and half specialty service work for dealers. You could say that I do specialty service work for multi-line franchised dealers 360-degrees around here. Crankshafts, cylinder heads, splitting cases, machine work whether they are watercraft or motorcycles… even some of the local lawnmower shops, believe it or not, who bring me generators and things like that.” Boyko has also turned his magic touch to the V-Twin sector. “Valve jobs, bore jobs, things that they can’t make flat rate on the job. I also do work for the Super Hooligans, magazines, Roland Sands TZ750, you name it. I’m grateful for the opportunity to work on all of it!”

ABOUT THAT MASK Boyko began masking up early in his career… and not as a fashion statement. “I rode minibikes in the early 1970s for the Indian Motorcycle Company but broke my leg and started wrenching after that. “I learned porting from the best… Lance Morewood’s Dad, Dallas Baker, Harry Klemm!” Part of that learning process was porting heads all day long, breathing in polishing compound, smoke and metal shavings.

“After the first couple days of breathing that stuff in, I began hacking it back up. I told my Mom that it couldn’t be good for me, so I started masking up at work.” Boyko then demonstrates how much particulate matter a carbide grinder can remove with a couple passes of a grinder… “now imagine doing that for hours every day, yet they thought I was dumb for wearing my bandanna. If they would have done it, they might have lasted longer?” Ted is literally practicing a dying art as the secrets of the early 2-stroke tuners are going with them. The row of grinders arrayed like a surgeon’s tools came from some of the masters. “Lance brought me old man Morewood’s tools… they don’t make ‘em like this anymore.” A throwback to that earlier era, Boyko’s business ethic is also a blast from the past. “One wrong cut, one slip, and I have to eat the cost of the whole job. It happens but I would never think of passing on the cost of my mistake to a customer.” Every job ticket has his name on it and his hand in it. “You have to have integrity and do good, professional work.” And when his clientele includes everyone from magazine editors to factory race teams you can’t afford to have word spreading about a lack of professionalism. But Boyko sees every job as important, from the kid with a clapped out 80cc to the TZ-750 cylinders he is doing for Roland Sands latest AHRMA project. “There is only a handful of us doing this anymore,” he admits. But there is more to it than just running a grinder as Boyko is by default skilled in all trades. “You mention truing, nowadays everyone is going to specialty houses like Dubya or Buchannans to get a wheel laced. I do a lot of my own truing and lacing because I love doing it. It’s really kind of tranquil… you can sit at the bench with the truing stand, listen to music and just have a good old time!” Music and motorcycling go together for many in this industry. Boyko’s “desk” is the stool behind his drum kit. “We have a little studio set up in the office… I have my drum kit and Scott Cox donated a bitchen Fender Eric Clapton signature model guitar for jam sessions. I play my drums every day. I would say the most important thing of the day is to play my drums before I go home.” Rock on Teddy!

23011 Moulton Pkwy. Suite H6 Laguna Hills, CA 92653 Ph (949) 642-3275 Fax (949) 613-8327

https://boykoracing.com/

DON’T GET STUCK IN THE MUD. Service Contracts Priority Maintenance Protection Packages

NATIONAL POWERSPORTS DEALER ASSOCIATION UPDATE Now The Real Work Begins

e asked, you responded… now the real work begins! Back in the April issue we asked the dealers if there was a need for a National Powersports Dealer Association and the nation’s retailers came back with a resounding “yes”! Even though Dealerenws will not be administering this proposed association, we are willing to do the heavy lifting to get this program off the ground. Dealernews has championed the working group looking at this for one over-arching reason. We have always kept the focus on “Retail Excellence”. It is what customers deserve and where growth for our industry comes from. We believe a Powersports Dealer Association will make those who participate better retailers. There are more than 92,000 active trade associations in the United States. Everything from AAA (Automobile Club Of America) for the motoring public to AARP (American Association of Retired Persons) for old folks. Within the powersports realm, we have all heard and are probably card carrying members of the AMA (American Motorcyclist Association) and the MIC (Motorcycle Industry Council) and its satellites like ROHVA (Recreational Off-Highway Vehicle Association) and MSF (Motorcycle Safety Association). The car guys have SEMA (Specialty Equipment Manufacturers Association) complete with a giant trade show, and NADA (National Automotive Dealers Association) with an equally impressive trade-only event; the boat folks

have MRAA and a dozen other trade-specific alphabetical amalgams aiding their members, RVIA handles the Winnebagos of the world (compete with its own association gatherings)... beginning to sense a trend here? Of that group of 92,000 active associations, more than half of them are considerably smaller than the number of powersports dealers in the U.S. and 2/3s represent constituencies that are much less impactful in terms of financial impact. Considerably less! MIC estimates the value of the powersports retail marketplace to be $39 Billion! There are approximately 8,000 franchised dealerships, distributors and retail sales outlets employing 74,000+ individuals generating $3.41 Billion in payroll alone! That is a nice chunk of change that is getting heavily taxed. We can afford to have a voice as an industry, but until now, there hasn’t been a National Powersports Dealer Association (at least not one that stuck). When we first posed this question in the April issue, 79% of the respondents indicated they would not only be willing to join a national dealer association, but also pay $250 a year in dues for government relations and legislative watchdog services... and this is on top of the great work already being done in Washington by AMA, ARRA, MIC and others on behalf of powersports. Even more potential members said they would be willing to support a dealer association that offered honest, data-driven dialogue amongst industry players, to the tune of 86%.

Of course it is one thing to fill out a survey form. It is another to reach into your wallet and shell out a couple sawbucks for something as intangible as association dues for a hypothetical group! The survey was also conducted prior to COVID closures, and the face of retailing has changed dramatically in the past 90 days... Or has it? MIC just reported dirtbike sales were up 18% at the height of the closures. Dealernews is still willing to run this concept up the flagpole despite all that has happened. However, to reach the next level of transforming theory into reality we definitely need some more feedback. Please take the time to fill out this survey and give us some guidance for what’s next! https://forms.gle/YwbsVCirnTeTH4o16

The Survey:

If NPDA works well, what outcomes are most important to achieve within 2-5 years? (Rank 1-5) Stronger Dealer/OEM Relations Favorable Franchise Laws at State Level Improved Operational Efficiency at my Dealership (Profitability/Business Practices) Lower Dealership Operating Expenses from leveraging Association Discounts Increased Ridership (Bring new Riders to Powersports) Better Representation at Federal Level for Dealers Becoming well informed and connected to a larger Powersports Dealership Community Other __________________________________ What are the biggest problems for your dealership that could be served by a NPDA? (Rank 1-9) Employee Medical Insurance Costs Garagekeepers/Property & Liability Insurance Costs Limited access to accurate market data Limited access to accurate dealership financial data and benchmarks Adversarial relationships with OEMs Lack of dealer statutory protections in my State Lack of quality dealership training General costs of doing business increasing We are disconnected and too fragmented as a Powersports Dealership Community Other __________________________________ Why is the problem you ranked as #1 is the biggest problem for your dealership? _________________________________________ What are the top 3 services you would value most from a NPDA? Government Relations Office at Capitol Hill Legal Affairs Representation at State Level 20 Group Program Market Data and Forecasting Tool Dealership Financial Benchmarks and Composite Tool On-site Annual Dealer-Member Meeting Monthly Member Web Conference Education: Dealership Employee Training Portal Member Discounts on Dealership Liability Insurance & Employee Benefits Member Discounts on Other Dealer Services such as Credit Card Processing Frequent Communication regarding important issues related to Powersports Dealers If the top 3 Services you selected in the previous question were provided by a NPDA, what is the maximum amount you would pay per month for membership? (From $10 to $500) What services would need to be provided by the NPDA to justify double the membership fee you selected above? _________________________________________

JUNE 2020

MIC CONTINIUES TO COMPILE RESOURCES Looting & Vandalism Update

Monday, June 8, 2020 Dear Powersports Dealers and Retailers, The past several months have been unprecedented. And now, just as states are beginning to reopen, many brickand-mortar businesses have been physically damaged or destroyed around the country. We strive to find ways to help our members and the broader powersports industry. To those powersports dealerships damaged by the recent looting and vandalism, we are offering you a free MIC membership if you are not already a member, and the suspension of your membership dues for a year if you are. Please reach out to our Member Services at memberservices@mic.org for more information. Additionally, here are some things to keep in mind: If you have experienced damage, here are a few recommendations to get started with the process of recovery: -Document the damage with photos, video, inventory of damaged/missing items. This list should be as comprehensive as possible. Try to include descriptions, including cost. -Get a police report. -Talk to your agent/broker about potential coverage claims under any policies, which could include: property, liability, business interruption, business owners, umbrella, business income, and possibly auto. If your dealership is not impacted, NOW is the time to reevaluate your insurance coverages. Call your insurance agent and discuss your coverage. There are a number of insurance companies that are MIC members. If you want to explore additional coverage or a new carrier, please consider these MIC member companies: Farmers Group, Inc., Progressive Insurance, SAFECO Insurance Company, Sentry Insurance/Dairyland Cycle Insurance, and Williams and Stazzone Insurance Agency. All too often dealers are on the front lines of disaster – floods, fires, tornadoes, looting. If you are a dealer who has experienced loss in the past and would like to serve as a resource for impacted dealers, please reach out to Member Services. The powersports industry has been through a lot and we still have tough days ahead. But what we rebuild together now will be a lasting foundation for all of us. Your MIC Team

In March, nationwide sales of bicycles nearly doubled, with commuter bikes increasing by 66%, leisure bikes by 121% and eBikes up 85%, according to the N.P.D. Group, the market research company. eBikes, bicycles, Harleys and service-only shops are some of the surprising beneficiaries of COVID-19. Amid all the pain and sorrow of the Coronavirus pandemic, eBikes and bicycles are seeing the biggest spike in sales since the oil crisis of the 1970s. The unprecedented demand is being fueled by consumers looking for an alternative to buses and subways, looking for ways to get out of the house, and searching for ways to stay active – and have fun.

Dealernews Research By Dr. Paul Leinberger

PARADIGM SHIFT! From Surviving To Thriving: Reimagining The Next Normal

he McGrath family of dealerships in Iowa had their best April ever. Their two Harley stores in Dubuque and Coralville went from a glut of inventory to less than 30 days, leaving them scrambling to score more bikes at auction, trade-ins and horse trading with fellow dealers. In the teeth of the pandemic, they are thriving. Seattle-based Rad Power Bikes said its April sales of eBikes increased by 297% year-over-year, while Ontario, California-based Aventon e-bikes saw its sales in Massachusetts grow by 298% and in New York by 164% alone! Overall, US e-bike retailers reported a 140% increase in sales since March 15th. Even Triumph accelerated their charge into the eBike sector by releasing their Trekker (see page 39).

“They are flying-off-the-shelves like toilet paper,” said Charles McCormick, founder of City Bikes, an independent bike shop in Washington, D.C. “I finally feel like the bike is getting recognized for the awesome tool that it is.” Two-wheel forms of transportation – whether it be bicycles or motorcycles – have always played a singular role in American life. They have been viewed as leisuretime devices: bicycles for summer days and motorcycles for leisure and sports. Relatively few Americans have used bikes or motorcycles as a serious alternative to cars and public transit. According to The New York Times, fewer than 1 percent of New Yorkers commute by bicycle and in Portland, which has the highest percentage of cycling of any American city, only 6.3 percent commute to work. The number of motorcyclists who commute to work is higher, but not dramatically so. The pandemic has forced consumers to break with the past and is creating new ways of living and working. It is also creating a unique opportunity for the motorcycle industry and its dealers. Pandemics can be transformational if the opportunity is recognized and collective action is taken. McKinsey research has identified the steps necessary to take advantage of this once-in-a-lifetime opportunity: “setting a bold aspiration, ensuring execution at pace, and sustaining the transformational change.”

A successful approach includes four phases: “Do now, discover, design and decide, and deliver.” It’s the 5-D process of transformation and it goes like this: 1 ) Do Now: Take Immediate Action “Execute early interventions to make immediate impact. Set new standards to be used throughout the transformation effort.” In the case of dealerships, this means taking the first step in creating the “Dealership of the Future”, which I wrote about in January 2019. That first step is to begin selling eBikes and perhaps even bicycles. As I said then, you need to see yourself as a mobility company, and not as a motorcycle dealership. Sell a variety of mobility options. Taking that step will dramatically increase your customer base and in the process, you will sell more motorcycles.

With cities taking steps to insure that the new-found popularity of bicycles and eBikes will be sustained over the long-haul (for example, Seattle is closing 20 miles of streets to most traffic permanently, Oakland is closing 74 miles to most vehicles, and Minneapolis is setting aside 18 miles for pedestrians and cyclists), it is incumbent on the industry and dealers to take advantage of this transformational shift. 2) Discover: “Conduct top-down assessment to identify full potential of performance improvement and cost efficiencies. Launch immediate initiatives in parallel.” As a dealership, take the time – because you have it right now – to survey your customers and your service area. What do your customers want now and what do consumers in your area need and want? The survey doesn’t need to be elaborate, but it needs to be done. It will be money well spent. 3) Design And Decide: “Mobilize a broader set of (industry) leaders. Refine financial cases for priority initiatives. Develop an implementation plan for full transformation.” As a dealer, you need not do this on your own (although you could). Now is the time to get the Motorcycle Industry Council and the American Motorcyclist Association together to help. They say they are ready to help you through the Pandemic – so take them by their word. Transformation is at hand. 4 ) Deliver: “Drive execution through talented initiative teams and rigorous performance transparency and management.” Volunteer to join an industry-wide initiative team (supported and coordinated by the AMA and the MIC) to drive the transformation forward. Together with the MIC and AMA, you can transform this industry. These unprecedented circumstances demand unprecedented actions. It will take creativity, openmindedness, flexibility and stamina to get this done – but you can do it. Now is your time!

A perennial keynote speaker for the Motorcycle Industry Council's annual Communications Symposium, Dr. Paul Leinberger has become the powersports industry's de facto futurist/strategist. Dr. Leinberger is an expert in market/brand strategy and research with more than two decades of social trend forecasting, market strategy and strategic planning. Prior to joining TTD, he was Senior VP of GfK NOP, where he ran the company’s flagship consumer trend services, Roper Reports, as well as the company’s groundbreaking Global Visual Database. His client list reads like a Who’s Who of corporate America: Hewlett-Packard, Apple, Disney, Nordstrom, Microsoft, Levi Strauss, E.& J. Gallo Winery and Toyota, among many others. Prior to his global responsibilities at GfK NOP, Dr. Leinberger was the Corporate Manager in the Product Planning and Market Strategy department at Nissan North America. Dr. Leinberger holds a Ph.D. in organizational and social psychology and a Masters of Urban Planning (Highest Honors). He lives in Irvine, California, and his work can be seen at www.dennyleinbergerstrategy.com

JUNE 2020

Dealernews Research By Lenny Sims

BY THE BOOK

NADAguides Market Insights Power The Market Values

alk is cheap, uninformed decisions are what can be costly! The changing nature of retail caused by the COVID stay at home orders have had the unintended consequence of driving up the number of on-line look-ups to record numbers. Interesting side note is that more bikes are being sold as the research increases… perhaps these customers are selling themselves? A prime example of powering through the pandemic comes from the dirtbike sector. “New off-highway motorcycle sales are up 18.9% January through March of 2020,” note our friends from the Motorcycle industry Council. And this is not just talk. It comes from the MIC Retail Sales Reporting System which gathers newmotorcycle retail sales data from the 14 leading manufacturers and distributors in the U.S., providing a strong indicator of sales trends. NADAguides Top Researched Brands is also another trusted indicator of what is going on. So where is the off-road brand action online? KTM has a narrow 3% edge over Yamaha, and just five percentage points on Honda. Kawasaki and Husqvarna

round out the top five off-highway brands in terms of look-ups. For all the headlines to the contrary, Harley still has some staying power. As to be expected, it tops the charts of top researched cruiser brands. What is surprising is by how much more than would-be rival Indian. Harley outpaces all cruiser contenders… COMBINED. Meanwhile Indian is contesting last place with Triumph. In fact, more people are researching defunct Victory cruisers than new Indians. The story isn’t much different on the Touring side, other than the fact that Harley accounts for a whopping 80% of the Touring Brand activity… while Indian, Triumph and Victory all come in at 1% each. Crazy isn’t it? There is much more parity in the sportbike sector. Kawasaki and Yamaha remain in a dead heat at the front of the pack, but GSXRs and CBRs are just behind, waiting to draft for a run to the checkers when the summer sales season hits its peak. With a second wave of COVID threatening to peak and state jurisdictions’ opening and closing orders banging like screen doors in a tornado determining what the “new normal” for retail will be is still impossible. What we can say with confidence is that dirtbikes are still selling like hotcakes!

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Dealernews Research By Don Musick

WHERE’S WALDO Footprints, Part I

n unexpected upside of social distancing has helped us track down Waldo in record time! Clay Bennett, Editorial Cartoonist for the Chattanooga Times Free Press and Pedro Mezzini, Creative Art Director at “David the Agency” in Buenos Aires, did a little reimagining of Waldo’s journeys during the pandemic! With Waldo safely in tow, it’s time to get back to the

business of visualizing your dealerships retail footprint in the marketplace. To accomplish this analysis, we’ll leverage parts of the Google Ecosystem which is platform independent, cloud-based and most importantly free! Specifically we’ll be using Google Sheets as well as Google My Maps and Google Drive. In order to access these applications you’ll need a Google account (also free). If you already have a Gmail email address, then you’re good to go. If not, you’ll need to set one up. So the first step is to navigate your browser to the Google website (www.google.com). In the upper right corner of the page is the “Google apps” icon which when clicked will open a menu of all available apps. Click on the Account icon to open the Account setup dialog as shown below. By default, the “Go to Google Account” tab of the dialog is selected and if you already have an account, this is where you can log in. Select the “Create an Account” tab otherwise. There a couple of ways to complete the process, one involving the setup of a new Gmail account and the other using an existing email account. It only takes a couple of minutes either way. Instead of walking through the signup procedure here, the YouTube links below show both techniques. Account setup without Gmail Address: www.youtube.com/ watch?v=lENXMPIFJio Account setup with Gmail Address: www.youtube.com/ watch?v=ArZpwBl_z10&t=20s

“Google apps” icon

FREE SHEETS TO THE WIND With our shiny new Google account in hand, it’s time to revisit the “Google apps” icon and select the “Google Sheets” app as shown below. The “Sheets” application appears revealing sample spreadsheet templates, a list of saved Google Sheets (stored in Google Drive) as well as the option to create a new Google Sheet. Selecting “new” will open a blank “untitled” spreadsheet ready for data import.

The Google Sheets interface should appear quite familiar to Excel users and in fact much of the functionality is the same. Be sure to click on the “Untitled Spreadsheet” label to rename it so it’s saved (automatically) to Google Drive with a name that you recognize. And speaking of Excel, Google Sheets accepts a variety of import formats including native Excel formats and a variety of text formats (a complete list can be found here). Files can be uploaded from your local PC or selected directly from Google Drive. Continued on page 32

JUNE 2020

Continued from page 31

BIG DATA Your market footprint means your data, so before you can visualize the lay of the land, you’ll have to import your customer data into Sheets. The process is straightforward and quick (as illustrated above) and once imported, the data is auto-saved in Google Drive. An example of imported data is shown in the “Test Retail” spreadsheet below.

In order to visualize the data in Google My Maps, your data must include location information. In the example above, customer “address”, “city”, “state” and “zip” are listed as separate fields. Other formats are also permissible such as in a single field like “address, city, state, zip”. As shown here, zip is presented in Zip+4 format although this is not necessary. Any of the fields appearing in Sheets will also appear in My Maps once uploaded. No surprise that My Maps uses the Google Maps geocoder to obtain accurate location latitudes and longitudes. In fact, My Maps will geocode just about any location provided with accuracy increasing as more information is available (i.e. country>State>City>Zip>Address).

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

You need dealership management solutions that allow you to focus on what you do best: serving your customers. CDK Lightspeed®EVO is the #1 DMS in the Powersports industry. With 37 years of industry experience and knowledge, we can turbocharge your dealership with the solutions you need to help you steer with confidence. You’ll be able to stay in control and keep your business running smoothly — even in these times of change — whether you’re at your desk, on the road, or in the field. Your success fuels our passion. Take full control of your business.

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MARGIN

A Cure For What Ails You By Phil Ammendolia

ad news. A declining retail market. A massive uptick in online spending. Now, a virus that’s locked us down for months, followed by rioting in the streets. Enough already! Whoever is in charge of creating the challenges for small businesses is really good at their job, aren’t they? There is no “magic bullet” that will cure all the ills of business, but there is one thing that’s about as close as I’ve ever seen in my years in the motorcycle industry; margin. More margin forgives a lot of sins. Those who find it prosper. Those who don’t often go out of business. Sometimes slowly. For most people,1976 was just another year, but for me, it was the beginning. During the summer of ’76, I got my first job in the motorcycle industry at a small accessory store in Castro Valley, California. That was the start of what at this point is a 44-year career. That store was really small, but pretty profitable per square foot. The main challenge was simply not enough space to generate enough volume to really make big money on what was then the available margin in the industry. It made a living, but it was never a big living. In those days, we worked on a 40% margin on everything in the store, except tires. Tires were at 30%. Sort of a “loss leader.” At that time, I thought 40% was the magic number, and that this was the margin that Harvard Business School said retail stores were intended to work with.

In the 1990’s, I saw more and more motorcycle accessory companies lowering their dealer margins. Some went to 35% as their standard. Others as low as 32%. It never made sense to me. Businesses have overhead. They need profit to survive. The idea that “It’s 32% I wouldn’t have had otherwise,” doesn’t pencil out for covering most store’s expenses. Every single item that goes out your door either contributes to, or detracts from, your bottom line. It’s the overall blended number that counts. Higher margin products are the answer to improving that blended margin. During the ‘90’s while I worked at Fox Racing, I was asked to take on the challenge of growing sales in their fledgling mountain bike and BMX apparel division. Stepping out of my comfort zone and into the new arena of the bicycle industry for the first time in my life I learned that the “magic 40%” was nothing more than the way most of us in the motorcycle industry did things. Although 40% was an accepted standard, it was apparently arbitrary. At that time in the bicycle industry, margins started at 50% and went UP from there! What a game changer in the way I looked at business. Everywhere I’ve worked since, I’ve pushed for higher margins with the products we offered, and most often have managed to offer 50% or more. While 50% doesn’t guarantee an end of year profit, it does make it a more realistic goal. It’s actually pretty simple. Here’s a basic example: $10,000 @ 40% margin = $4,000 in profit. $10,000 @ 50% margin = $5,000 in profit. $1,000 MORE profit per $5,000. How would that work out for you based on your actual accessory volume? Would it put an extra $10K in your pocket? $30K? If you average $500,000 per year in accessory sales, that could be an extra $50,000 by doing exactly what you’re doing now, except for moving to higher margin brands. Here’s another important point. We now live in an Internet world “Minimum Advertised Price Policy.” If a brand “allows” you to sell for a 10% discount, they are “allowing” you to lose 25% of your profit. Don’t believe me? Let me show you the math: $100 helmet @ 40% = $60 cost and $100 sell price, which turns a $40 profit. $100 helmet – 10% MAP = $60 cost and $90 sell price, which turns into $30 profit. $30 is 75% of $40. You just lost 25% of your profit. I know of a few dealers who won’t stock anything in their stores unless it offers a minimum 45% margin, and only main brands that they feel they MUST have are allowed below 50%. You’d be surprised at how many products they have in their stores. Not all are big-named brands, but those stores are VERY PROFITABLE, and allow the

owner the funds they need to grow the business while enjoying a comfortable lifestyle, or survive a sudden quarantine.

COVID-19 CAVEAT:

There ARE brands out there that offer quality apparel and accessories at 45%, 50% and higher margins. You just need to look for them. In this industry, we all seem to have the idea that people ALWAYS walk in and ask for a specific brand. If we spent a day in the accessory department and listened, I think you’d be surprised how often people are more likely to say something like, “I need a helmet. I’d like one of those flip-fronts. What can I get for $150 to $200?” If they DO ask for a specific brand that you don’t carry, you can often sway them by saying, “We don’t have that brand, but we do carry a comparable “X” brand. We like it because of its features, quality and value. Let me show you one.” That basic line works remarkably well for those who are willing to use it.

There are a lot of up and coming or lesser known brands that offer wonderful quality and features. Many are made at the same factories as those with the big brand logo. Often, these lesser known brands offer better margin for equal performance. The trick is to learn enough about these products that YOU believe in them. That belief will come across to your customer. They’re in your store because they see you as the expert. Would you like to test the theory? Add some highermargin, lesser known brands. Come up with a way to discretely tag them, like a green highlight stripe on the price tag. Offer your staff a limited time spiff when they sell the higher margin product. Make the spiff high enough to intrigue them. You might find that those “unknown brands” suddenly catch fire in your store, and your bottom line will thank you. If two products offer pretty equivalent features, similar quality, and similar support, why wouldn’t you choose to sell the one that makes you the most money? A healthy margin is the best cure for just about anything that ails your bottom line!

Margin Works For Socially Distanced Sales As Well

hough there are certainly challenges in these days of social distancing and the need for shopping by appointment, or from home, there are also fresh opportunities to bring in much needed revenue, while still servicing your customer base — as long as you’re willing to learn a few new tricks. Dropship orders to your store for curbside pickup, or directly to your customer’s doorstep keep you connected and relevant. More and more brands, and even some distributors, are offering streamlined services during the COVID-19 closure. This is a win-win-win situation, and worth taking a look. The supplier wins by selling something they might well not have otherwise. The dealer gets a sale and builds that service level with their customers. The customer gets to play with motorcycles and stay connected to your store. Win-win-win. All of my comments on margin hold true. Still, there’s often less time spent processing a dropship order. In some cases, freight costs have been reduced, or traded for a little less margin, but on the overall scale and under these circumstances, it can make a lot of sense. This is a time when those extra dollars will make or break some businesses. These relaxed policies also give you the chance to “testdrive” the process. Could your store become the winning hybrid of brick & mortar, with online service? Yes! It could. My company is one of those that offers this type of program, and to date, we are really happy with the dealer participation, and the added sales being generated for our company. If you choose to pursue this, fire up your customer email list and your social media channels. If you don’t have a page set up on Facebook or an Instagram account, Google the how-to, and make it happen. Lifestyle shots, images of your store and events you’ve held are great content. You can do this. If you aren’t sure how, contact your local rep or distributor. We are always anxious to help.

Making the world a safer place for motorcyclists, one helmet at a time, 44 year industry veteran, Phil Ammendolia, has been fortunate to work with and play a key role in building some of the strongest brands in the Action Sports Industry, including Fox Racing, Fox Bike Apparel, Bell Helmets, and is now the President & CEO of LS2 Helmets U.S., the fastest growing helmet brand in the United States.

JUNE 2020

MORE POWER TO YOU. With 500 cold-cranking amps for

reliable start-ups in any condition and 32 Ah reserve capacity to power all your accessories, the GYZ series by Yuasa sets the standard by which all powersports batteries are judged.

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TRIUMPH TREKKER ROLL OUT Trick Bit Of Kit For A Treat Of A Price Page 38

SEGWAY PULLS PLUG ON PT Donâ&#x20AC;&#x2122;t Believe The Hype Page 40

STATE OF THE eSTATE Silver Lining Segment Page 41

Superior components from top suppliers include RockShox suspension, Shimano Steps system, Shimano Deore disc brakes and Selle Royal Vivo saddle. According to Triumph, the Trekker GT combines performance engineering with the latest iteration of Shimano’s battery technology and drivetrain to offer customers the best in style, comfort, quality, and finish. The 250 watt Shimano e-drive weighs just 6.36 lbs (2.88kg) and paired with the Shimano E8035 504Wh battery, offers day-long range of approximately 90 miles per charge. And did we mention it is a Triumph? It comes in familiar Triumph motorcycle “colours” of Matte Silver Ice and Matte Jet Black. The elegant look is enriched by dedicated blackedout features and detailing across the bicycle including wheels, pedals, seat post and handlebar stem, plus high-value cast “aluminium” Triumph badging.

TRIUMPH TREKKER GT Trick Bit Of British Kit

hat goes around comes around. Triumph has come full cycle from its origins as a bicycle purveyor to 118 years of motorcycles (more or less) back to bikes with the launch of the “Trekker GT” e-cycle. Recognizing the emerging e-bike biz and the opportunity for a solid network of powersports dealers to bring it to market, Triumph put the wheels into motion. An embargoed press release was issued to select media sources and then the bike was launched exclusively through the dealer network on June 16. In addition to exclusivity, Triumph is supporting the launch with a full marketing campaign. A dedicated Trekker GT webpage went live on the Inside Triumph site, a series of 5 targeted social media posts went out from the launch through the end of June and a direct e-mail went out to Triumph’s full customer and leads database. Premium components, and after sales support via Shimano Service Centers results in a 2-year warranty being offered. “I was sold on it when I first saw it,” says e-bike advocate and #1 Triumph dealer of all time, Tom Hicks. “That is why I had the first one in the country on display in my showroom a couple months ago.” Sharp-eyed readers may remember seeing it in the video that accompanied Southern California Triumph’s dealer profile back in the March issue? “It is a great all-around bike, the price point is phenomenal and it is a Triumph. I am an e-bike evangelist and Triumph’s top fan so this is the best of both worlds for me…. And did I mention it is a Triumph?” Unlike the badge engineering of the original product (see sidebar), the Trekker GT has been designed by Triumph’s world class in-house vehicle styling team. “This is not a re-badged model as you may find with some competitors,” proclaims Triumph’s marketing materials. “The Triumph Trekker e-bike offers a clean and contemporary design whilst its elegant lines make for an impressive silhouette. Cast aluminum Triumph badging and a unique twin paint scheme adds an extra layer of style.” So much for gilding the lily with marketing speak, what do dealers really have to sell here? The Trekker is positioned as the perfect balance between a commuter and hybrid e-bike.

A HISTORY OF TWO WHEELS

But as Tom Hicks notes, it is the bottom line that is the bottom line. The Trekker GT is available exclusively at Triumph dealers in the United States and Canada priced at $3,750 in the US and $5,000 in Canada. And did we mention it is a Triumph?

riumph actually started as a bicycle company 18 years before the first motorcycle was ever badged. A German emigrant named Siegfried Bettmann came to Coventry, England, and founded the S. Bettmann & Co. Import Export Agency, bringing in bicycles from other manufacturers which were sold under his brand name. In 1886, Bettmann changed the company name to Triumph Cycle Company. A year later, the company registered as the New Triumph Co. Ltd., with funding from the Dunlop Pneumatic Tyre Company, who wanted a partner to promote commercial use of its pneumatic bicycle tires. That year, Bettman was joined by a fellow German emigrant Moritz (Maurice) Schulte and the team began manufacturing its own Triumph bicycles in 1894. In 1902, the company produced its first motorcycle, and in 1905, introduced the first all-British motorcycle, setting the wheels in motion for the next 100+ years. Fast-forward to 1983 when Triumph Engineering went into receivership and British building magnate John Bloor bought the name and manufacturing rights. Bloor decided against relaunching Triumph immediately. Initially, production of the old Bonneville was continued under license by Les Harris of Racing Spares, in Newton Abbot, Devon, to bridge the gap between the end of the old company and the start of the new company. For five years from 1983, about 14 a week were built at peak production. In the United States, owing to problems with liability insurance, the Harris Bonnevilles were never imported. In 1988, Bloor funded the building of a new factory at a 10-acre site in Hinckley, Leicestershire. The first Hinckley Triumphs were produced for the 1991 model year. Bloor put between £70 million and £100 million into the company between purchasing the brand and breaking even in 2000. On March 15, 2002, as the company was preparing to celebrate its 100th anniversary as a motorcycle maker, half of the main factory, including the assembly area and stores, was destroyed by a fire. But by September the factory was rebuilt and back to making motorcycles. Bloor’s son Nick took over as CEO in 2011 and in 2017 Triumph opened a new £4 million visitor centre, along with a collection of Triumph motorcycles, memorabilia, and a factory tour. In February 2020 it was announced that Triumph would be moving the remainder of large scale motorcycle production, including the Tiger 1200 and Speed Triple production lines, to their Thailand factories, leaving only the specialist Triumph Factory Customs and prototype builds remaining in the U.K.

JUNE 2020

CURRENTS+

SHOCK & AWE

SEGWAY PULLS THE PLUG ON PT

Didn’t Live Up To The Hype Segway Inc. is ending production of the Segway PT, the big-wheeled electric device that has become popular with tourists and police officers since its debut in 2001. High profile incidents, including President Bush toppling off of one and the lack of a solid network of powersports dealers to support it resulted in the machine that was going to revolutionize human transportation never gaining the traction it needed during two decades of trying, “Within its first decade, the Segway PT became a staple in security and law enforcement, viewed as an effective and efficient personal vehicle,” said Segway’s president, Judy Cai. However transporting mall cops did not generate sufficient revenue to continue. The company will end production of the vehicles on July 15, she said. “This decision was not made lightly, and while the current global pandemic did impact sales and production, it was not a deciding factor in our decision,” claimed Cai. Segway’s self-balancing personal transporter was invented by Dean Kamen and brought to market in 2001 as the “Segway HT” (Human Transporter). It was subsequently known as the “Segway PT (Personal Transporter). Over the past two decades, Segway has expanded beyond its original core product, introducing in a compact electric unicycle and even electric roller skates. In 2017, the company moved into the electric scooter business. Over the past two decades, Segway Inc. has expanded beyond its original core product. The company has introduced a compact electric unicycle and electric roller skates. In 2017, the company moved into the electric scooter business. Segway Inc. said that it had sold 140,000 Segway PTs since its inception, and that the vehicles accounted for less than 1.5 percent of the company’s revenue last year. Unfortunately, 21 employees will lose their jobs; another dozen will remain for two months to a year and five will stay on at Segway’s manufacturing plant in Bedford, N.H., the company said.

BRP EV Design Awards BRP’s International Design Competition challenged students from six different design schools to create an urban electric vehicle designed for northern conditions. In April, 11 out of the 61 concepts were pitched via videoconference to the jury. “This year again, we were very impressed with the creativity of all the participants, especially the finalists,” says Denys Lapointe, Senior VP, Design, Innovation & Creative Services, BRP and Chairman of the Jury. “Congrats to this year’s winners Bradley State, Liam Harrington, Antoine Desloges for your amazing ideas and to have taken part in this vehicle design challenge. And thanks to all the universities that train the designers of tomorrow: UQAM | Université du Québec à Montréal, Humber College, LAB University of Applied Sciences, College for Creative Studies, Lapin University and Designskolen Kolding.” The challenge: Participants were tasked with creating an electric alternative to the car, for safe travel within and outside of cities, with enough storage capacity for daily needs, and suitable for all roads except highways. The sustainable mobility solutions had to reduce the environmental footprint, needed to be easy to drive and be connected and appeal to Gen Y and Gen Z. And now, for the winners… Bradley State, from Humber University in Ontario, won the judges over with his threewheeled concept, earning a paid internship at BRP’s Design & Innovation Center in Valcourt, Canada. When the situation allows, Bradley will be able to bring to life a full-size 3D model of his winning design. Congratulations are also in order for Liam Harrington, from College of Creative Studies (CCS) in Detroit, and Antoine Desloges, from Université du Québec à Montréal (UQAM), who finished second and third. In addition, Thomas Philipona, from UQAM in Quebec, and Valtteri Valli, from Lahti University of Applied Sciences (LAMK) in Finland, were recognized with honorable mentions. “The competition is as exciting for us as it is for these young visionaries, and it’s always a pleasure to collaborate with designers of the future,” concluded Lapointe. “I couldn’t be prouder of what the students have successfully accomplished, despite these challenging times.”

STATE OF THE eSTATE

According to the NPD Group which has been tracking the bicycle business for more than a decade, trails and bike paths are more crowded than ever. Mass retailers’ bicycle departments are picked clean of low-priced, entry-level bikes. Specialty bike shops all over the country are sold out, waiting for the industry supply chain to play catch-up. Service departments are booked out weeks if not a month or more on repair work… but the real action is in eBikes. Ebike sales were up 51% over the past year, then the COVID closures kicked in and sales went through the roof! “The COVID-19 pandemic, and the lockdown-fueled cabin fever among consumers desperate to get back outdoors, has no doubt benefited the overall bicycle industry in at least the short term,” said Matt Powell, NPD’s sports industry advisor. “And the ebike market has been one of the biggest beneficiaries of these extraordinary circumstances.” Electric bicycle sales saw a year-over-year gain of 87% in March and April combined, generating $72.6 million at retail during these months, according to NPD. In April alone, ebike sales surged by 92% and contributed to a year-over-year gain of 75% in sales of bicycles, indoor bikes, parts, helmets, and other accessories to $1 billion during the month. “Consumers are also opening their wallets for more expensive ebikes, with their sales growth outpacing many of the analog bicycle categories NPD tracks.”

COLUMBUS, OHIO

JANUARY 21-23, 2021

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NORTHERN EXPOSURE

Control, Canadian Style, Eh? Page 50

DIVERSITY+

Necessity Is The Mother Of Invention

Page 58

HEADS UP!

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Crashing The Party AtPAGE Road 48 America

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new buyers but include testimonials here as well. Both generate business and far too often we don’t acquire either. This expanded mindset simply provides more options for you. The Referral Brain Sales is a head game. The most challenging sales space is your mind. You need to understand that you’re not doing something to your buyers. You’re doing something for your buyers. You should feel so good about what you’re doing for your customers that it would be remiss of you not to share that with as many people as possible. You want to be so enthusiastic about your efforts that you metaphorically want to shout it from the rooftops. If you want to be convincing, you need to be convinced. This is the “self-talk” tape that should be looping in your mind (and not that other nonsense).

® THE SALE!

Referral Capture Tools: Forms, Incentives & Language You’ll want to create what a hard copy Friends and Family Form. A simple document including your branding, short credibility enhancing copy, and space for the names of numbers of just three people.

The Single Worst Mistake You Are Making Right Now! By Mark Rodgers

You should also be prepared to offer some sort of reward or acknowledgment to referrers (Always within state statutes: Ohio and Colorado this includes you!). Whatever you choose, it should be meaningful and significant.

ood news: you’re selling units! Bad news: you are not maximizing these sales. For those dealers who have been shut down during the COVID crisis, PAY ATTENTION! There are three profit components to a powersports sale. The front end, the back end, and the referral.

It’s What You Do, Before You Do That Does it Set the stage early. The moment you realize you have an honest-to-goodness prospective motorcycle buyer (and not someone you tackled on the way to the parts counter!), simply explain:

Front End + Back End x Referrals = Your Never-Ending Sales Boom! Even in today’s Google AdWords world, there is simply no better marketer for you and your business than a newly minted, deliriously happy human being. None. Nada. Niente. Everyone knows referrals are crucial to future business. Yet, they go untended. Why? • Sale fragility: We’re afraid our current deal may unwind. • Referral reluctance: We don’t want to sound greedy. • Referral inability: Too few have real referral capturing skills. • No measurement: No one really manages and measures referrals. Expand your thinking! Don’t limit referral thinking to

“We’re excited that your thinking about getting a motorcycle. And we’re extremely pleased that your considering Mark’s Motorcycles for your purchase. Our objective is singular: We want to make you so deliriously happy with your experience that, by the time we’re done, you’re going to want to tell everyone about us. Fair enough?” Notice this is low pressure. Notice I use interesting language. Notice I get a small, non-threatening commitment. Nudging the customer to a referral state… not dragging them along kicking and screaming! Timing Is Everything The most propitious time to ask for a referral is when the customer is at their emotional buying zenith. Not too early, not too late. You want them to be on top of the world when you ask. (This is not to say there aren’t other times you can ask, for example, I can show you how to get referrals from someone who hasn’t even purchased from you, but, alas, that’s another article.)

Think about your sales process. Reflect on what the customer is experiencing. Then pinpoint your best time to ask for referrals. Language Of The Referral The words you use and the phrases that you choose have an almost incalculable impact on what your buyer thinks, says and does: You: “Having fun? Customer: “Absolutely!” You: “Right on. As you might imagine, at Mark’s Motorcycles, we’re working to grow the sport of motorcycling. This helps us thrive and gives you more friends with which to ride. May I ask, what did you like about your purchase experience with us? Customer: “You knew your stuff. Got back to me fast. And I didn’t feel like I was the one being taken for a ride!” You: “Excellent! (Pause) Hey, would you be willing to help us, help others?”

Now you can take one of two actions: 1. Acquire a testimonial (Good). 2. Acquire introductions to new customers (Better.) We’ll show the testimonial acquisition, first. Customer: “Sure, how?” You: “Easy! We could simply shoot a quick phone video of you making those comments, or if you’d prefer, I could just write up your comments and we’ll use as a written testimonial? Do either of those work for you?” Customer: “Sure, just write ’em up.” Voila, now you have a video or written testimonial referring business again and again. Next time, I’m going to show you Mark’s Ultimate Referral Method. Guaranteed to generate new business for you. Until then, do me a favor… don’t keep this column a secret! Now, go sell something, will ya?

Be sure to tune into: SALES SUCCESS IN 60 SECONDS OR LESS as sales expert and award-winning Dealernews columnist Mark Rodgers shares how to accsellerate® your sales. Watch Mark explain the guiding principle of how to succeed in the motorcycle business even in these stormy times. (FYI, Mark only counts the content after the whizbang video open in his time limit, so start your stopwatches then!) Mark Rodgers is an award-winning speaker, best-selling author, and soughtafter consultant, who has spent 33 years working in the Harley-Davidson industry. Check out his 60-second sales tips twice a week at Dealernews social media channels or contact him via e-mail: Mark@RodgersPC.com Copyright ©2020 by Mark Rodgers. All Rights Reserved.

JUNE 2020

The shopping cart also represents our first sensation of “riding.” After all, most of us, (whether our conscious minds recall it or not), began life by being tossed into a shopping cart in one fashion or another. These days, it’s all buckled-in with a shock-resistant car seat/carrier combo thing with neck protection. Back in my day it involved inner-thigh scratches as my mother would stuff my pudgy baby legs through the leg-holes in the baby-seat area of the cart, then leave me alone to wobble dangerously close to toppling out to the tiled floor while she selected products further down the aisle. But that last sensation stays with us as we grow, doesn’t it? We reach the age where we’re too big for the baby-seat at the cart handle and what do we do? Do we walk dutifully alongside like a newborn fawn, staying close to our doe while she forages? Do we follow safely in single file like a baby duck towed by an imaginary rope wound of the fear of reprimand? No. We run around to the front of the cart and jump onto the frame crossmember, holding the basket with our little fingers and leaning back; all the while throwing the cart’s center of gravity off-balance and making it hard for our parent to push and steer; but dammit, we’re RIDING! And let’s face it, there’s nothing better than riding — even if it’s a shopping cart!

REDEFINING THE HUMAN RACE The Shopping Cart Theory By William Douglas Little

t’s amazing. Something as mundane and simple as a shopping cart can weave itself into our lives, holding different meanings and various levels of significance to each of us. Yet, if you think about it, the shopping cart represents more than just a handy method of transporting all of the needed essentials, amazing bargains and point-of-purchase goodies that we’re tricked into purchasing at our local Wal-Mart via the trickery of ever-evolving aisles and the magical dumbingdown of florescent lights and well-placed displays… For one thing, the shopping cart represents security. As we push the cart down the aisles, mindlessly tossing in items that seem desirable at the moment, (a surprising number of which will never later see open-package status at home), we get the sensations of fulfillment and contentment; Retail Therapy, as so many have called it. That sense that we have plenty and there is plenty more to be had. Starvation is at arm’s length or further and all is right with the world, so splurge, my dear friend. Splurge upon my wares, for life shall provide! You can always make more money — spending is good! (Man, we are a messed-up species, aren’t we?)

And, even if we fail miserably at life, the shopping cart also finds its way into our existence as a talisman of salvation and a form of security. Should we be lucky enough to make off with one from the Aldi’s on the corner, we can use it to push our worldly belongings from alley to alley, or transport collected aluminum cans to the recycling place down the road in the hopes of earning enough for a hot meal, or a bottle of hooch. In my 2008 book, Mexican Bowl Fishing: And Other Tales of Life, I tell a story about shopping cart surfing as a teen. In that recounting, we pretty much flipped the widely-known identity of the shopping cart as a Beacon of Security to its lesser-known evil twin: the Purveyor of Death & Destruction. Yes, the shopping cart plays a big role in all of our lives, regardless of race, religion, social status or IQ.

Recently, however, I was reminded of an aspect of the shopping cart that is becoming quite popular in Philosophy and Human Behavior circles: specifically, this is referred to as The Shopping Cart Theory. According to this theory, the shopping cart is an indicator defining the type of person that we are. Let me explain that by quoting the anonymous theory verbatim, because it’s rather interesting … “The shopping cart is the ultimate litmus test for whether a person is capable of self-governing. To return the shopping cart is an easy, convenient task and

one which we all recognize as the correct, appropriate thing to do. To return the shopping cart is objectively right. There are no situations other than dire emergencies in which a person is not able to return their cart. Simultaneously, it is not illegal to abandon your shopping cart. Therefore, the shopping cart presents itself as the apex example of whether a person will do what is right, without being forced to do it. No one will punish you for not returning the shipping cart, no one will fine you, or kill you for not returning the shopping cart and you gain nothing by returning the shopping cart. You must return the shopping cart out of the goodness of your own heart. You must return the shopping cart because it is the right thing to do. Because it is correct. A person who is unable to do this is no better than an animal; an absolute savage who can only be made to do what is right by threatening them with a law and the force that stands behind it. The shopping cart is what determines whether a person is a good, or a bad member of society. As we are now halfway through 2020 — a year that will live in the history books filed under the header, “Most F-ed Up Year, Ever” — it’s easy to look upon society as a lost cause and become jaded toward any possibility of a future for our country, as well as the world in which we live. After all, the puppet masters have done a spectacular job of painting a picture of a failing world full of doom and a miserable, horribly-divided country at the center of it all, filled with hateful, spiteful citizens who care nothing about the greater good and must be forced to comply with rules, since we’re incapable of following them ourselves. We’re too stupid and uncaring to lift a finger for others, after all. Just look at us — destroying everything we see in an effort to prove that we shouldn’t be viewed as thugs and spreading disease and famine everywhere because we’re too selfish to throw away our small businesses, our jobs and our family’s futures in order to stop the spread of a virus, (a close sibling to the common cold, which has been and will be around forever, no matter what we do). Hell, looters can’t even be bothered to return a after boosting a big screen TV! But hark what light through yonder window breaks? Could it be a beacon of hope — a bright ray of sun at the end of a manmade, dark tunnel? Could it be proof that we’ve been fleeced and that our society is actually still made up of far more good than evil?! But, how can this be? The media has shown us that we are stupid, selfish and inherently evil! Our government has shown us that we’re not worthy of freedom during important moments; we must be forced to comply with their demands! How could we possibly be a nation of predominantly good people, amidst a world of predominantly good … umm, other people?! Continued on page 48

JUNE 2020

Continued from page 47

If The Shopping Cart Theory holds true as a litmus test of individual goodness, (which I think we can all unquestionably agree that it does); then our Media, our State and Local Governments and even the masses of “Know-it-all” celebrities have been wrong! Or they’ve misled us. Or outright lied to us. I submit this: go drive through any Wal-Mart parking lot during a busy shopping time and count the number of shopping carts left abandoned in the parking stall aisles. How many do you see? A half-dozen? A dozen? Two-dozen on the high-side, perhaps? Now, count the number that are overflowing the many cart corrals, making up those big, long, snaking trains of nested steel and floppy wheels. How many are there? 200? 300? 400 or more, if you have lazy cart-pushers? That means, of course, that 400+ people have shopped there since the pushers last made their rounds and, of those, only a handful or so did not choose to do the right thing when given the choice. Just for the sake of doing the right thing. Despite the fact that nobody was watching. This highly scientific and indisputable evidence, brought to us by one of the most-trusted and long-lasting symbols of security that we all know — the shopping cart — just goes

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to prove that there is, indeed, hope for the future of our country, as well as the rest of the world. The shopping cart says so… and who can possibly deny the word of our most trusted friend?

William Douglas Little is a former radio personality, stand-up comic, an auctioneer, a former multi-line dealership owner an author and a father of three. He lives on his farm in rural Missouri with his wife Beth. Find William’s book, “Mexican Bowl Fishing: And Other Tales of Life” on Amazon.

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JUNE 2020

4/1/20 10:35 AM

Northern Exposure By Marq C. Smith

CONTROL, PART II

ast month we talked about control regarding quoting a price to someone on the phone. In short, don’t! It rarely leads to a sale. However, you do have to stop them from continuing their search by controlling the process from the very beginning. This time, let’s look at trade-ins, and customers wanting a value of their bike, which is always in perfect shape, and needs nothing. Never mind the dent in the tank from a couple of stop and flops, and the bald tyre. “Just give me a ballpark number,” they say. “I won’t hold you to it.” The first thing I always think is: if you won’t hold me to it, why even talk about it? But they always ask. What do you do? I almost never give them a number. Once in a while, yes, but that’s only to bring back to earth a customer who spits out a number so ludicrous, that I have to get him somewhere close to reality. There are some caveats; how old is it, and how many kilometres on it? Has it had any accidents? I don’t want some 20 year old, rusty, beat-up bike that’s only worth 29 cents a pound. I want primo used bikes that I can make 30% on. Usually though, I want to stop talking about his trade, and talk about the bike he wants to buy. Build value in your product. Eventually, when the conversation comes back to the trade, I always ask “Do you want the most value possible for your bike?” What do you think he’s going to answer? “Well if you want the most value possible, bring it in. We can talk all day, and look at pictures forever, but a bike here, in the parking lot, will sell much better to the sales manager than a picture, or a description. If it’s as good as you say, I will be able to get you top dollar.” That usually gets him, or her, realizing that it’s in their best interest to bring the bike in. If you do just give him a number, you will in all probability never see him again.

They have almost certainly tried this “What’s it worth?” question at other dealerships, thinking that they will bring it into the dealership that tells them the biggest number. Usually that never works out. The biggest number is usually a WAG (Wild Ass Guess), and totally wrong. Now they finally bring their bike in and get told that the number mentioned is too high. And, of course, the customer has to save face and leave, all properly incensed and angry. This also, of course, has “educated” them. Maybe the bike isn’t worth that number they have in their head. At this point, they may go to the salesperson who gave them the second highest number. Which is also a WAG. However, there is a very good chance that they will remember the guy who wouldn’t give out a number but wanted to work with him and get the best value. You have raised a question in their mind, and also been probably the only one who wasn’t playing the game. So hopefully he comes in to see you. If he has been elsewhere and gotten some more realistic pricing, he is primed for a close and now you have to get busy, and work with the client to get him a good value. You build up your product and are brutally honest about his. If you have a rapport, you can almost always make a deal. And it’s odd how the client says that XXX Powersports said they’d give him $5,000 for his trade finally makes a deal with you at $4,300. Hmmm.

I have heard sales managers ask what the customer wants for his trade. I never ask. Does it really make a difference? What really matters is what it’s worth, and what it will sell for. If you do ask, the client will more than likely come up with a totally unrealistic number. Then that number is right there, floating in the air, and hanging over you like a price vulture, waiting to grab some profit out of the deal. He now has to justify his number and wants you to see that his value is valid. If you don’t have that value dangling over your head, your chances of closing a deal are much better. Once you have decided on a trade in value, don’t sugarcoat it. Give it to the client straight. See what his reaction is. Tell him what the problems are, if there are any. Be positive that this is a great deal. That will go a long

way to sealing the deal. Often, the value you have that you think is going to be too low is fine with the customer. If you come back all defeated from the evaluation, the client will read that defeat, and use it against you. When talking about your unit, never quote any price other than MSRP. A bottom line quote from your mouth is always going to create friction at some point, and give the client a reason to go shopping — with the ammunition you have provided. Let the customer tell you what he would like to pay. If the price is way too low, tell him. If it is somewhat reasonable, half the battle is over, and then you go to work. Don’t let the customer bully you. Control the process from the first moment, and you’ll always have great success.

Marq C. Smith has been involved in motorcycles since he was 17 years old. He worked for Canadian Harley-Davidson importer Trev Deeley as well as being the dealer principal for his dealership Western Powersports (not to be confused with the American Distributor Western Power Sports) for 21 years. He currently works at Holeshot Motorsports, in Langley, British Columbia, Canada. He taught rider safety courses for 10 years, and still is involved in making sure new riders get proper training. When he is not working in a dealership, he tours all over North America by motorcycle. He does plenty of dirtbiking and ATV riding as well. Famous Last Words: “I know you believe you understand what you think I said, but I’m not sure you realize that what you heard is not what I meant.”

JUNE 2020

CASE STUDY

A Disruptive CASE For Change, Part II By Larry Daniel

New value creation is arriving shortly in large part because of changes that occurred across society and with the new digital economies of scale. Basically, smart phones, e-commerce and new attitudes about vehicle ownership have positioned consumers and business alike to consider a different relationship with transportation and delivery, and within but a few years, companies will start to roll out new models of commercial trucking that will barely resemble what is in place today. While the detailed changes coming ahead in the commercial truck industry might not be apples-toapples for the powersports industry, CASE provides a great framework for considering changes that could affect our powersports world. Connectivity – abundant Wi-Fi, Bluetooth devices and the internet of things – these allow dataflow to affect everything. Consumers are being conditioned to attach the data, to information flows, and desire connectivity. Across the powersports industry, we need to feed the consumer with logical and easy extensions of their ownership and ridership experience. We should seek to augment and highlight the pleasure of riding each time out, while reducing and simplifying their costs and pains of ownership. Every additional element of digital connectivity has the potential to make a product or service easier for consumers to use and as their experience gets incrementally easier, so does their satisfaction and so too does our edge over competing products and services (implying that our customers will be easier to retain and they’ll more easily gravitate to us for repeat purchasing).

Autonomous Vehicles - is there something here for the powersports world? Larger transportation s a consultant for a company serving dealers and concerns are competing to win the road, from fully OEMs across multiple motor vehicle sectors, I get autonomous interstate highways all the way to the last exposed to dynamics in several industries that are mile. Transportation as a service (TaaS, as Tony Saba kin to powersports. It strikes me that disruptions similar mentions in his presentation for the North Carolina in size to those of the 20th century automobile are Department of Transportation) has the potential, if not particularly underway in the commercial trucking world. likelihood, of dominating primary transportation. In a world of autonomous vehicles and TaaS, the role of In the truck world, “CASE” is an acronym that describes powersports vehicles and equipment appears primarily several undeniable transportation forces that will shape recreational and secondarily as backup transportation. It is key for the industry to emphasize the experiential our future, including: element of ownership as that is perhaps the only domain where it can stay distinctive, i.e. the equipment • Connectivity that streamlines communications or transportation aspects of powersports will likely grow between devices, and between consumers and only less compelling in the new transportation era. The businesses value of powersports is its character, spirit and freedom. • Autonomous Vehicles that become the dominant Sharing – if you’re over 50 like me, it might not even make sense to try to understand this emphasis; it just • Sharing of Vehicles (and less private ownership) makes sense to respect that coming generations are adopting economic behavior that deviates from ones • Electric Vehicles and fuel before. Millenials and GenZs particularly, and GenX to a lesser extent, generally don’t view the need for 52

ownership as former generations had. This is a seldom discussed aspect of the next-gen ridership demographic; coming generations will be less inclined to buy the status or utility of a powersports vehicle, they’re focused on powersports as a means to an experience, so the experience becomes what we must promote, bolster and emphasize. And, food for thought, it might make sense to foster a rental model or co-ownership model that allows younger gen types the opportunity to ease into ownership or monetize their investment [renting out their own bike] after purchase.

Should anyone doubt that pressures for innovation and change are accelerating at every level of business? More than a century has passed since the emergence of the automobile overhauled a baby industrial, pre-technology world within 10 years. And now, the CASE dynamics look likely to toss many portions of the established motor vehicle and transportation sector into fast and faster change all over again.

Electric – in a season where Tesla stock valuations imply that it is now the 2nd most valuable motor vehicle company on planet earth, could there be any doubt that consumers are ready to embrace electric? Worldwide, OEMs across the motor vehicle spectrum are scrambling to contend for leadership in this fuel category, and there should be little doubt that charging stations will surface to meet the consumer demand. Move now to put electric product on the show floor, and make sure that you are authentically conversant – electric will soon be an increasingly important aspect of motor vehicle markets and the sooner that you can embrace the product, the better that you’ll be prepared.

There is no such thing as equilibrium in a digital world – everything is prone to volatility and everything is susceptible to disruption. So take a step back, calibrate the bigger picture and make plans to drive your own changes. None of us need to tackle all the dynamics, but by adopting a spirit that embraces change with a willingness to direct time and budget into new business models and new technologies, we can more readily navigate the winds of change ahead.

Larry Daniel is the Managing Director of Sextant, a Colorado-Based firm focused on Dealer Development, Operations and Marketing for Dealers and OEMs across the motor vehicle industries. Feel free to reach Larry at 719-362-0070 or email at ldaniel@sextantusa.com JUNE 2020

Personnel Files By Alex Baylon

COPPING AN ATTITUDE IN OLDE CARLSBAD! A Christmas Miracle… In June?

t a time when the media is bagging on the police and people don’t have jobs in record numbers, why on earth would cops and Christmas even be a topic for Personnel Files in June? There really is a moral to the story… and a restoration of faith in the system. I live and work in a little sleepy surf town in Carlsbad, California. Some of the moto heads will associate the town with Carlsbad Raceway and the USGP from the 1970’s and 80’s. I wanted to go a little bit off topic, but it’s a good story and one that you don’t hear very often. It was the last weekend in May where the story starts in my home in “Olde” or Old Carlsbad (spelling is optional). I absolutely love my neighborhood and it can make you feel comfortable enough to leave your car unlocked at night, which is exactly what I did and how the story begins. I woke up Sunday morning and started on my “Honey Do” list of things around the house, until I had to make a run to the local hardware store. As I got into my car, I realized that the glove box was open and my car had been ransacked. Luckily, I really didn’t have much in there except about 6 Starbucks gift cards that I use to give to the homeless, people who go above and beyond with service, or sometimes just a random stranger. Something as simple as a Starbucks card can deliver a message about gratitude or positivity. I didn’t really sweat the break into my car and the loss of a couple cards I was just going to give away… until I realized I had left my iPad in there. That’s when panic set it! I was really bummed that it was stolen, but quickly moved past the 4 stages of grief and almost went straight to acceptance. As the panic subsided and acceptance set in, it

dawned on me that I could track my missing iPad, so I got on my phone and clicked Find My Device. I was shocked that they didn’t turn it off, so I quickly took a screenshot of its location and called the Carlsbad Police Department for the Hail Mary before the hitting stage 5 of acceptance. I spoke to an officer, explained the situation and told him that the iPad was a couple of cities over in Escondido and I did a police report for the gift cards and iPad. The officer on the phone told me the odds of having an officer available to go over there were about 50/50. I told him that the iPad had great reception and it was definitely not in a house and it was in a car parked on the street. He told me he would talk to the sergeant in charge and to text him the screenshot, so I did. I went off to do my thing at the hardware store and tried to move on. When I got home, I decided to call the Escondido Police Department to see if they were willing to go up the street and get my iPad. I was told that an officer would be contacting me. As I was doing my chores, I got a text from the Escondido station telling me he was able to dispatch an officer to find my iPad and he would be calling me when he got there. About 15 minutes later I got a call and an officer was there who asked if I remembered the design of the Starbucks cards. I said they are Christmas themed as I bought 20 of them at Christmas. He said, “I can see Christmas gift cards in this car” — I was shocked! I told him who else would have Christmas gift cards in almost June? He asked me if I could ping my iPad to play the alert to see if he could hear it. And so, I did about 3 times. He told me he couldn’t hear anything, and he would call me back. He then called me back and told me he watched someone get in the car and leave, and to check the location of the iPad. I said it was definitely moving and told him the location. He then said he would call me back. I got another call back and he said where is it now? I told him the location and all he said was “I’ll call you back”. I was left in the dark wondering what was going on, but I could only imagine he was tailing him. I got another call with the same request, this time I said the car is in the 7-11 parking lot on the corner of Felicita Ave and Escondido Blvd. I said I’ve been tracking it since our last call and it hasn’t moved. He asked for me to ping the iPad, and it was almost like he was playing with me and having fun doing it, because I could hear it when I pinged it. Not only that but he knew that it had a small custom-made front number plate sticker with the number 43 and my last name on the back of the iPad. After I hear the iPad I got really excited and started asking a million questions — only to get another “I’ll call you back”. About an hour later he called me back and said he was on his way back to Carlsbad and he would stop by my house to deliver it. I couldn’t believe that this happened, think about all the things you see and hear about the police and how there isn’t much they can do, and that day I had the complete opposite story. About 20 minutes later the police officer showed up at my place with my iPad and believe it or not 1 of my Christmas Starbucks gift cards. I tried to give him the gift card but he could not accept it. Luckily for him my wife had just finished baking some cookies and he could gladly accept those. Not only is this a good story, but there is also a moral to this Personnel Files story. Like the officer from Escondido PD, there are good people doing good jobs out there. As the

industry emerges from this COVID-19 pandemic, and you are bringing employees back, it’s a really good time to review your business and employees. You can always hire your old employees back and go back to the way things were, but if you were trying to fit a square peg into a round hole just because it was convenient, this might be the best time to put the right piece in the right place.... and as proven by the Escondido PD, there are good people out there who are good at their jobs!

MIJ Industry #PROfiles

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. JUNE 2020 55

Confessions Of A Customer® By Eric Anderson

The Death Of A Salesman The traditional sales person at a car dealership is gone. Remember William Macy’s car salesman character in the movie Fargo? Pack your bags! Along with the traditional sales model vaporizing in the last 3 months, so too is the long-winded process of purchasing a new vehicle inside a dealership. It doesn’t matter whether the customer thinks it’s a pressure cooker or a germ vault—customers simply don’t want to come shop at a car dealership any longer. Of course, this isn’t quite as true for a powersports dealership because of the “fun factor” we have over commodity-slinging used car dealerships, but that will change soon courtesy of the COVID-19. Heck, anyone can purchase a car without any human interaction at a Carvana Vending Machine and have it delivered to their home like groceries or a pizza. Do we still need the old 4-Square Method of selling a motor vehicle when everything seems to boil down to an app or a logarithm to do it for us? It was always my opinion that the F&I staff made back the profits which the salesman gave away in the first place! Maybe you should keep the numbers guy and let the sales staff go?! What customers experience in the automotive world now will soon become expectations within the powersports world. We all need to study how auto dealers are adapting so quickly. Most sales are conducted online over a period of a few days when people either have time to cybershop… or ask a few questions over the phone. Once a deal

is “cut” the dealer delivery staff clad in masks delivers the sanitized car to the customer’s home for a test drive. If satisfaction is achieved, the paperwork is finished at the customer’s home and the sale is complete. This process can be repeated with another vehicle until the sale is final thereby minimizing human-tohuman contact. Most salespeople thrive on the “human connectivity” of the old process, but with an airborne contagion floating around in the air randomly, that will need to be avoided for quite some time, possibly forever. Don’t wait for the COVID vaccine to kick in — American online shopping habits will have been more fully evolved by then. Think more like the European models where property values and space used to be the restricting factors preventing large showrooms. Now in the USA, why have a giant brick and mortar showroom at all? Well, maybe a nice display and an Orientation or Delivery Area is all that’s needed instead of 5 acres of largely occupied by: 1) dedicated to showrooms, and 2) back up inventory crates. Now the “showroom” is on the Internet — so is the closing room and F&I office. Configurators on OEM websites encourage “build your own” vehicles with all the accessories you desire from a massive a la carte menu of products. Finish your “build” and then email it to your local dealer to finish up the sale. No physical presence needed! Will OEMs forego never-never flooring programs to finance “your dealership’s inventory” while it’s on display and replace it with possible regional warehouses chocked full of inventory for 150 dealers…ready to ship to “delivery centers” instead of “dealerships?” Yes, it sounds awkward to re-label yourself, but just think of the lowered risk you would have if you didn’t have to finance 200 units per franchise stored on site! Sure, the margin would be smaller, but is the decreased risk worth it? “Risk vs Reward” should be ever-present on your mind as you wind your way through this next year of business-altering decisions.

A few things which will not change are the local demand for fitted accessories, parts and service. The more “fitment” is a challenge to customers the more likely he won’t buy from the E-Comm Giants. That applies to both apparel and unit accessories. If it’s complicated, most customers will have you “just do it” or supply it rather than hassling with mis-fitting returns to be dropped off at a UPS or FedEx office. Most of us customers know where to take the e-commerce risks by now… and where not to! And we still need you to tell us what parts we need because you’re still the expert. The same applies to service — I am not going to install a Rekluse clutch anytime soon—I have other things to do so I can make the money to pay you to do it better than I could anyway. So now every salesman in the powersports industry hates me for saying what’s obvious in the auto industry and applying it here in Dealernews. That’s okay—if you still rely on a fixed desk and a showroom full of units, you are not a solution in the future of powersports retail. You will become a dinosaur. Here’s the tip—become a “Product Expert” who can communicate across all mediums at all times of the day, night and weekend. It’s a new world and we need to take our skills to where they are most needed… and it seems it’s not going to be selling off of a linoleum floor any longer. R.I.P. Mr. Salesperson.

Is 4 Square Dead?

his simple technique brought to us by the auto industry decades ago simplified how a dealer makes money selling a new or pre-owned unit. Is it still relevant in modern online sales methods? Yes, of course because it still remains the 4 areas where a dealership can profit from a unit sale. If one of the quarters’ profitability “goes up or down” during the negotiation process…the other quarters have to move in the opposite direction to take up the slack. Do you remember the mirrored glass windows between the showroom’s closing rooms and the back room where “my sales manager” resided for the sole purpose of approving our “deal?” This is what they were figuring out back there while you twiddled your thumbs waiting patiently so you could drive your new car home. Now, those shenanigans are history and an app on Edmunds or CarDirect.com will do it for you transparently… unlike those old mirrored showroom offices. These systems still work online or over the phone… especially in this era of “remote” customers. However you might consider adding a few extra profit squares like “Accessories” (to be purchased at time of new unit sale) and “Pre-Paid Maintenance” so that you come up with a larger profit per unit than you used to in the 90s. Think “6 Square” now!

JUNE 2020

By Alisa Clickenger

NECESSITY IS THE MOTHER OF INVENTION

e’re nearly three months into the ‘new normal’ of the powersports industry (and life) and we’re now seeing how the flexible businesses are adapting to the times and thriving. Some dealerships are nearly out of inventory and NPA is reporting record sales and prices. Necessity is the mother of invention, as they say, and that’s certainly been true in my own company. Women’s Motorcycle Tours is a touring and events company heretofore focused exclusively on inperson events. In a brainstorming session we stumbled upon the idea of bringing women together virtually, and thus the Women’s Motorcycle Conference Online was born. The March women’s conference was a huge success with 29 presenters, 15 sessions and 5 different networking sessions over two days. We sold 350+ tickets to attendees from nine different countries in our extremely short pivot-to-market of just two weeks. With an unknown amount of shelter-in-place orders still ahead of us, we thought, “What if we expand to serving all riders, not just women? Thus REVVtalks was born.

REVV, the Riders Educational Virtual Vault, was inspired by TED talks. We decided we wanted to bring top quality powersports industry knowledge to consumers in the new webinar format that has quickly become so popular in the socially distanced wake of COVID-19. REVVtalks was launched with an online powerports conference, but that was only the beginning. By leveraging new technology and using it in creative ways, we’re now offering live weekly REVVtalks and continually adding new material to the virtual vault every week. Access to the vault material is by subscription: subscribers can purchase access to individual talks or subscribe quarterly or yearly for access to the entire body of material. A key takeaway is while it’s essential for your business to focus on what you’re good at, it’s equally imperative to keep taking a fresh look at your business. We started with the question ‘how can we serve’ and it led us down an entirely new avenue of thinking. We considered what our core business is and realized it’s not just leading people on vacation on motorcycle tours, it’s really about bringing enthusiasts together. In an era when print publications are dying and reliable sources of information are getting harder and harder to find, our business pivot makes perfect sense. By embracing new technology quickly and having the organizational ability to be nimble and flex, we’ve been able to grow and expand our core business that serves our customers a new and ingenious way. It’s a win all the way around: we serve our customers better, provide a great service that fills a void in the marketplace, and we åßare seen as leaders in a new form of content delivery. Isn’t that what we want for all of our businesses?

Alisa is a two-wheeled world traveler, author, tour operator, and event producer. She has been featured in a variety of media outlets as a woman pursuing a life of adventure and helping others to access their inner wisdom and be free to lead lives they are passionate about. Her book Boost Your Confidence Through Motorcycling: A Woman’s Guide to Being Your Best Self On and Off the Bike became an Amazon.com #1 Bestseller. In 2019 Alisa was also named to Dealernews TOP 100 People in Powersports. Her personal mission is to empower women through motorcycling and adventure while being a strong advocate for the powersports industry at large. Alisa’s motorcycle touring company is www.WomensMotorcycleTours.com.

Become a resource of knowledge for your customers. Sell more. FREE Live REVVtalk and new content added to the virtual vault every week.

REVVtalks is an online platform offering unprecedented real-time access to powersports experts - riders, instructors, researchers, adventurers, filmmakers, journalists, creators and educators sharing their expertise and knowledge via FREE live webinars. • DELIVERING PROFESSIONAL INSIGHT • LEARN FROM EXPERTS • GAIN NEW PERSPECTIVES • CUTTING-EDGE INFO • TRUSTWORTHY RESOURCES REVVTALKS.COM REVVtalks | REVVpros | REVVconference

Want to be a REVVpro? Interested in advertising? Email Alisa@REVVtalks.com

MIC ASSISTANCE Some Help for Dealerships Nationwide

For powersports dealerships damaged by recent looting and vandalism, the MIC is offering free membership to those who are not yet members, and the suspension of dues for a year to current members. Please reach out to MIC Member Services at memberservices@mic.org for more information. Read More

FROM THE OUTDOOR RECREATION ROUNDTABLE Businesses Urge U.S. Senate to Pass Great American Outdoors Act More than 100 outdoor businesses, from Fortune 500 companies to mom and pop shops, including specialty retailers, gear and vehicle manufacturers, outfitters, campground and marina operators, and more sent a letter to Senate leadership urging swift passage of the Great American Outdoors Act to stimulate the outdoor recreation industry and provide safe and sustainable recreation access and infrastructure for generations to come. Read More

Preserve Protect, Promote You take care of business. We take care of the business environment. Strong, effective representation in Washington, D.C. and state capitals • Vigorous media outreach • Industry statistics source Sales data • Educational symposiums and networking opportunities Join MIC’s 650 member companies and strengthen the industry. Visit the MIC Business Center on the AIMExpo show floor at Booth #141 to learn how your company will benefit from membership, including how to get $200 or more off your 2019 AIMExpo Booth.

mic.org

MASKS FOR DOCS Protecting Parks Personnel by Donald Amador

group of recreation and natural disaster recovery organizations partnered with a sport clothing company to donate more than 500 cloth face masks to The California Department of Parks and Recreation (State Parks) Department Operations Center (DOC) located in Sacramento. “We have a responsibility to support sustainable trail opportunities on public lands in California. Part of that responsibility is stepping up to the plate when natural disasters strike,” explains Dealernews ADVOCACY+ champion Donald Amador. “These masks will help recreation staff comply with COVID-19 mitigation guidelines as they continue their work to reopen and manage Park units throughout the Golden State.” In late May, Quiet Warrior Racing, the Post Wildfire OHV Recovery Alliance (PWORA) and the Marin County Motorcycle Association presented State Parks with DHVANI high-quality masks at the agency’s DOC offices. “We have a responsibility to support sustainable trail opportunities on public lands in California, Amador added. “Part of that responsibility is stepping up to the plate when natural disasters strike. These masks will help recreation staff comply with COVID-19 mitigation guidelines as they continue their work to reopen and manage Park units throughout the Golden State.” The DOC is staffed by the department’s division chiefs and other departmental divisions, including the Off-Highway Motor Vehicle Division, who are assisting State Parks’ field staff with a variety of needs during the pandemic. “The partner groups approached the Off-Highway Motor Vehicle Division and asked what they could do to help, and I said it would be huge if they could help the department with cloth masks since there is a shortage,” explained Brian Robertson, acting deputy chief for the Off-Highway Motor Vehicle Division.

State Parks has had an integral role in providing the public messaging through the COVID-19 pandemic to help mitigate the spread of the virus. While State Parks has increased access at some park units by providing limited parking, including at state vehicular recreation areas (SVRAs), this does not mean recreating in the outdoors is going back to normal. Visitors should expect a different state park experience than they are used to. Here are some visitor guidelines for off-highway vehicle enthusiasts during COVID-19: Plan Ahead -- Visitors are advised to visit the webpage of their local outdoor destination before leaving home to find out if it is open, what new visitor guidelines are in effect and if parking is available. For example, here are some guidelines for all SVRAs: Entrance stations, staging areas, restrooms, and concessions will not be operating at this time. Shade cabanas adjacent to parking can be utilized only during equipment outfitting and breaks. Off-highway vehicles allowed to operate include: Motorcycles, ATVs (single seater), ROV’s (multi-seaters)-only family/cohabitants, Jeeps, dune buggies and sand-rails – only family/cohabitants. Stay Local -- Stay close to home. Do not take road trips to California’s SVRAs not in proximity to your neighborhood. Stay Safer at 6 ft. – Maintain a physical distance of 6 feet or more. Do not ride next to others or pull up next to someone else as it could put you in close proximity to others. In your riding group, limit the group to people in your immediate household. No gatherings, picnics or parties. Staging Areas -- Off-highway transport vehicles must be parked approximately 10 feet or more during unloading staging areas. Carrying capacities will be determined by the district superintendent. “The recreation groups are proud to support DHVANI’s “free mask” program that seeks to provide no-cost surgical grade face masks and washable cloth masks to frontline workers and others who need them,’ Amador concludes. “With the help from donations, DHVANI is using their manufacturing and distribution resources to put a mask on every face in America.” For the most up-to-date information on how State Parks is supporting the state’s efforts to slow the spread of COVID-19, visit www.parks.ca.gov/FlattenTheCurve

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

Please tread lightly and travel only on routes and in areas designated open for motor vehicle use. Remember, Respected Access is Open Access.

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Wünschisms By Uncle Paul

Mirror Image

ne of the great things about being a grandpa to a four-year old is it gives ya an excuse for visiting toy stores. Conventional explosives, motorcycles, chainsaws and matches were quickly outlawed by her father, so ol’ Bear (that’s what the little people call me) is always on the lookout for new and exciting devices, er… toys, to entertain and educate them, as well as provide a little pay-back to their less-than-perfect-while-growing-up daddy (my son). Recently, I purchased a three-pack of little-girl play mirrors for a couple of bucks. All three had plastic backing and stem-handles The smallest looked just about the perfect size for a small doll, the largest about right for a oneheaded human. All three mirrors seemed to be okay quality-wise, as well as shatter-proof. I looked into the largest mirror and it didn’t explode, so I know they’re made of some pretty sturdy stuff. “Princess,” the four-year-old, enjoys Bear’s show and tell, so I began teaching her about her new toys by demonstrating how the tiny mirror could slip between an intake trumpet and the mouth of a carb to make a visual inspection of where the throttle-slide stops at WFO. I told her how the air/fuel mix, is muffed up because of turbulence if the backside of the slide is above or not perfectly aligned with the carb venturi (bore). She nodded that she understood, then asked, “Bear, what if the throttle slide doesn’t come all the way up to the edge of the bore? What happens if it doesn’t come up high enough?” That question kinda upset me — she’s old enough to know better. I went ahead and explained to her

that if the throttle stop was positioned such that it wouldn’t allow a “full open,” WFO could not be achieved. Can’t win races without WFO, I told her. I grabbed the other two mirrors and strode over to a big Suzuki VS1400 Twin. I took the middle-sized mirror and showed Princess how to shine her flashlight against the mirror face to illuminate the dark cranny that hides a couple of hitch pins on several lower control mount retaining screws. She reminded me how difficult those screws can be if you forget about the hitch pins. Smart kid… she’s learnin’. I was really surprised when she slid the largest mirror under the Intruder’s lower peg/control mount and said, “Look, Bear! I can take the half-inch air ratchet and an Allenhead socket and break the pins off, like you showed me on the VS 800.” She was gettin’ ahead of me, so I decided to take Miss Smarty Pants down a notch. I asked, “Why do you think the design engineers wanted those 8mm fasteners secured in that manner?” Gotta admit, that threw her for a moment. Then she smiled, and said “Bear, you know the engineers didn’t have anything to do with those hitch pins. Some lawyer wanted them put there.” “Oh? Why’s that?” I asked her. She scratched her backside (just like Uncle Paul does when he’s thinkin’) and said, “If a dude is toolin’ down the road and all eight retaining screws fall out simultaneously, the lower control assembly could drop down, and the motorcycle might become unstable… possibly resulting in a loss of control and crash.” “So that’s why you shouldn’t deviate from recommended job function… They might lead to grave consequences,” I said. “Lawsuits, liability problems, an’ such.” “But Bear, doesn’t the same thing happen if you have a flat while running down the road — loss of control, unstable conditions?” “Yea, but there’s no money in flat tires. Now, quit yappin’ and hand me the air ratchet and some Loctite Red.” “Bear, can I play with my new mirrors now?” “Sure, Sweetheart. Take the middle-sized mirror and check the pad life remaining on the rear caliper of that Gold Wing over there.”

*Paul Wunsch was the owner of Love Cycles, a serviceonly shop located in Houston, Texas. “Wunschisms” are truisms that, according to the author, are often plagiarized or modified clichés – statements quoted so often that the employees of Love Cycles have numerically designated the most popular. Paul passed away November 21, 2003 but his wit and wisdom live on in the pages of Dealernews.

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THE FACE OF RETAIL Masks, Splash Guards & More, Part II

ou canâ&#x20AC;&#x2122;t tune into the Supercross or MotoAmerica broadcasts without seeing two things: empty stands and the racers, TV crews and techs all wearing masks. Even as protocols are relaxed, retail and racing re-open and we can all get back to whatever niche in the powersports business we are in, the face of our industry has changed, literally. From face masks at the track to splash guards in your store, the industry founded on the original social distancing device continues to face a brave new world. Â

Photo by Jeff Barger

JUNE 2020

FREE MASKS

The “A Mask For Every American” DHVANI outreach program was expanded to California Land Management personnel as a group of recreation and natural disaster recovery organizations partnered with the sport clothing company to donate 500+ cloth face masks to The California Department of Parks and Recreation (State Parks) Department Operations Center (DOC) located in Sacramento. See Don Amador’s ADVOCACY column in this issue for more on the story and think about DHVANI when it comes to your staff and customers. To donate to the DHVANI national free mask campaign, click here: https://www.dhvani.com/pages/freemasks

RSD SOCIAL DISTANCING STARTER KITS

You can run and hide, but that is not Roland Sands’ style! Rather than avoiding the COVID, RSD is running WFO into the wind, literally. Billed as “social distancing starter kits” RSD’s WFO neck tubes match up with the latest lid from Bell Helmets to address the post-pandemic era with some attitude... and retail for less than $20. Click here to get started: https://rolandsands.com/wfo-neck-tube/

SPORTSMASK

The Under Armour Sportsmask features three layers: 1) Spacer Fabric that has air pockets and stays off of the wearer’s mouth and nose to allow airflow. 2) Open-Cell Foam layer that is breathable but still makes it difficult for moisture and sweat to pass through. 3) UA Iso-Chill, a stretchy fabric that feels cool against the skin. Also, the fabric is treated with PROTX2, which Under Armour said is a non-metal antimicrobial technology that inhibits growth of bacteria and has been shown in lab tests to destroy COVID-19. The UA Sportsmask features a moldable nose bridge to help prevent airflow (a plus for people who wear glasses that tend to fog when wearing a mask), stretchy ear loops and side panels for a custom fit. It can be washed, folded and dried — which cannot be done with single-use disposable masks. The UA Sportsmask is available for $30 in four sizes via: UA.com

S.H.I.E.L.D.

This is not a reference to a Marvel comic book organization, but a way for your shop to win the battle with COVID closures. Cycra plastics founder and current Hardstreet partner Glen Laivins says his operation has turned its talents from touring luggage organizers to physically organizing dealerships struggling to adapt to the new business regulations. “With our 30 years of plastic molding and fabrication experience, Hardstreet is helping our motorcycle dealers with Counter Shields to aid in dealerships open up from this terrible pandemic,” explains Laivins. “The RYT-THERE Counter Shields are built in our facility in Greensboro, North Carolina. Currently we have delivered several hundred of these to motorcycle dealers and bicycle shops all around the country.” Motorcycle dealers wanting more details about this critical tool needed for confident reopening can see more here: https://hardstreet.com/rytthere-counter-shields

WIND MILL SEPARATES THE CHAFF WHEN IT COMES TO PPE PRODUCTS Delivering personal protection for retail and beyond for four decades, the pros at Wind Mill slat wall products have pivoted from showing off products to creating COVID barriers for your retail space. “We are launching a selection of PPE products to help tackle the challenges of operating within the retail environment, office settings and beyond,” claims the Sheboygan Falls, WI, based business. “Wind Mill provides the personal protection barriers, signage, clear face shields and sanitization stations required to make work areas conform to COVID-19 standards for interactions between employees. Our Project Managers at Wind Mill are ready to help answer questions and place your order. Check out the “BEFORE” and “AFTER” case studies here: https://windmillslatwall.com/perch/resources/wmppr-2.pdf

Photo by Jeff Barger

JUNE 2020

MOTOAMERICA ROADRACING RETURNS If A Race Falls In The Wisconsin Woods, Does Anyone Hear It? Photography by Jeff Barger

here were no fans but plenty of action in MotoAmerica’s season opener as the legendary Road America race course played host to the series opener for the first time in history. And although four-time defending Superbike Champ Cameron Beaubier made it look too easy with back to back wins, the logistics behind bringing racing back from COVID mandated closures are anything but easy! “Apparently, Cam is taking this social distancing thing to the utmost degree,” quipped MotoAmerica communications manager Paul Carruthers. The Monster Energy Attack Performance Yamaha rider made sure his competition never got close as he completed the double win. His 7.8-second win in the opening race was followed by a 13.4 second run away on Sunday.

JUNE 2020

The return to racing saw solid OEM participation in the premiere Superbike class. Six different manufacturers will be represented on the grid at Road America: Yamaha (seven entries), BMW (five entries), Suzuki (four entries), Kawasaki (three entries), Ducati (two entries) and Honda (one entry).

“We’re extremely happy with how the opening round of the 2020 MotoAmerica Series went at Road America,” said MotoAmerica President Wayne Rainey. “We had huge television numbers with FOX Sports, Eurosport, MAVTV, NBC Sports, YouTube and MotoAmerica Live+ (see sidebar). The event went off without a hitch, thanks to the efforts of our in-house staff, the staff at Road America, our volunteers, the riders and the teams.”

After the successful opening weekend sans fans, MotoAmerica becomes the first major motorcycle racing series to bring back spectators. “Now we get to go back to Road America and race in front of our fans, which will make this second race in Wisconsin even better. The COVID-19 pandemic has impacted everyone’s lives in some way and we’re happy to give our fans the opportunity to get out and see some racing at a world-class facility like Road America. We will be doing so, of course, using COVID guidelines.”

The second round of the 2020 MotoAmerica Series will not only feature its five classes – HONOS Superbike, Supersport, Liqui Moly Junior Cup, Stock 1000 and Twins Cup – it will also mark the debut of the MotoAmerica Mini Cup by Motul and the exhibition Heritage Cup event. The round will also include Road America’s Vintage MotoFest and all the extracurricular fan activities that go along with a MotoAmerica event.

JUNE 2020

Made For TV Event

he numbers are in and MotoAmerica has announced record viewership for its opening round of the 2020 MotoAmerica Series at Road America. The total TV audience tuning in for the season kick off reached 357,000 Nielsen households (466,000 P2+ rating) from its FOX Sports and NBC Sports Network shows from the May 30-June 9 airing period. But wait, there’s more… a lot more: In addition to the TV numbers, racing action from Road America captured 56,000 views and 9,000 total hours watched on MotoAmerica Live+, the series’ live streaming and on-demand service — in just three days! Initial international household ratings reached 334,000 across just four countries. More than 30 re-airs are scheduled in an additional 45 countries across Europe and Asia. Additionally, MotoAmerica’s live coverage of the Stock 1000 and Twins Cup races on Facebook had another 333,000 views. The Stock 1000 and Twins Cup races were also featured on the MotoAmerica YouTube channel with those two races producing a combined 212,000 views. If you don’t have a press pass for Road America like our shooter Jeff Barger, you can still tune in to the program all season long: https://motoamerica.com/watch/

Friends In High Places

ow does a trade-only magazine get photo access to MotoAmerica’s return to racing? First a clean bill of health; second a lifetime spent at the venue helps. Long-time Dealernews go-to photographer in the region Jeff Barger has been a fixture in the Road America pits and on the track since he first attended a California Superbike School at the track, circa 1982. In these unprecedented times, crashing the party is a story unto itself. “Back in 1982 I went to Road America for the AMA Superbike races,” says Barger of his maiden voyage to the venue. “I rode to the track on my 1974 Honda CB-750 I had bought in 1979. While I was there for the races, I saw a poster for the “California Superbike School” so I signed up.” After completing the California Superbike School, Barger went on to do a little AMA-CCS racing in years that followed “The next year, I bought a VF750F Interceptor... which I had for these AMA-CCS races,” he recollects. Who needs a photographic memory when they are a professional photographer (see photo, circa June 1983)? “Almost every year after, I went to the races at Road America as a fan or competitor. Once I became a Professional Photographer, I started getting press credentials to shoot the races.” Still being a fixture at the track isn’t nearly enough to crack the COVID quarantine. “The guy in charge of the credentials at Road America is John Ewert, and he knows me well. He is a great guy, and a pros pro for Media folks... I simply asked him for credentials, and I was in... sort of.” There were still plenty of MotoAmerica safety protocols to contend with. “When I arrived at the track, they took my temperature. Masks were required when near the race teams, in the pits, at the start/finish, and the podium.” In addition to masking up, Barger was also wearing his helmet much of the time. “To cover the start, the race from several different corners, the finish and the podium, you need to move fast. That’s why I always use a motorcycle, its way quicker... and with no crowds, I could travel much faster for sure.” Everything is always better on a bike… but you already know that.

“While riding around the track (with my helmet on), and shooting the race, no mask was required… of course there were no spectators or the usual media scrum around where I was shooting.” The mask was no big deal, but the lack of spectators was surreal. “Since I had been at many races with tons of fans, it was very different for sure,” Barger says. “One thing that worked well, was my getting around the track during the races because there was no one there. It was a bit of a strange feeling seeing empty bleachers on race day.” Empty bleachers did result in easy access to the facilities, though. “The food stand didn’t have a line at lunch, and only one other table was taken by one of the race crews when I ate.” However even Jeff’s connections couldn’t completely eliminate the COVID barrier. “Usually I talk to the riders, but not this year...they kept them completely separated from the still shooters.” Since the first race of the season was under lock-down, Barger is sitting on a massive archive of the images of the racers with their new team liveries and lists of new sponsors. Need a shot, click here: www.bargerphoto.com

JUNE 2020

Anonymous Dealer

OEM DSMs Don’t Get It!

know that there are examples of the reverse, but I have found that the OEMs almost never hire sales reps who have worked in the motorcycle industry before… Kind of like hiring a shoe salesman to run Harley-Davidson; but I digress. It has been my experience that OEM reps calling on dealers don’t really understand the powersports industry as a whole. They understand how to sell units to us, but they very often don’t have a clue how the retail end of the industry works. Once in a while, an OEM rep moves on to owning a dealership — usually with less than desirable conclusions. Mostly because, while they’ve been around the industry, they have not been involved in it. Now, I realize that their job is different than my job; I have to find customers to purchase the machines from me. It’s my job to make sure that we have the right accessories to purchase, and great after sales service. Their job is to get me to purchase as many units from the distributor as possible. There are a few who do go that extra mile, and correctly advise you of the number of units that you should be purchasing for your market, but for every one of those, there are ten who just look at the sales numbers they are generating, not how many you can sell. Some are much worse than others, and I’m not going to name names; you know who you are. I once acquired a snowmobile line. As snowmobiles were not my strength, I asked the OEM rep for a hand ordering the accessories we would need, and we came up with a $30,000 order. He seemed like a decent fellow. Obviously, I was very

naïve, as most of the accessories were still there when I finally off loaded that money losing line to another chump. The rep also moved on. To a completely different industry. Now one could make the argument that he was trying to be helpful, and just fell short, but I found out later that this was his modus operandi, and all of the dealers he had in his territory disliked him. He was only out for the numbers he could generate, not for our friendship, or our success. Mission accomplished. Many of the OEM reps I’ve had over the years wanted to be helpful but didn’t have the knowledge of the retail powersports industry. Having never been a dealer rep, I don’t know what sort of training they get, but I don’t believe it has a lot to do with how a dealership runs. They can be helpful as far as some events go, but usually the day-to-day management of a dealership is far beyond them. I once suggested that our metric rep work in a dealership once a fortnight (no, not the video game) or even once a month. I was greeted by astounded silence. What on earth reason would there be for a rep to work in a dealership? What indeed? Maybe to see what we go through every day, and perhaps realize that some of their suggestions are so far out to lunch, that they might as well be tomorrow’s breakfast. How many times has there been a suggestion at a dealer show; a new system, or a new concept that the OEM has cooked up? Remember Honda Powerhouse program? That was going to revolutionize the powersports industry. It was a big fizzle. If they had asked me, or many of my dealer principal friends, we could have told them that it was going to be an expensive flop. But, of course, they never asked any of us. Mostly because they don’t have any empathy for, or knowledge of, what we go through every day. Instead this is a NEW idea. This is a BIG idea. This is OUR idea. So, it must be a GREAT idea. I often wonder why OEMs have dealership advisory councils. They don’t seem to listen to them. I’m convinced that after every dealer council meeting, the OEM in question very carefully takes all of the suggestions, collates and alphabetizes them, and then files them very carefully. In the shredder. So, OEMs; it’s time to get to work. It’s time to get on board with the dealers, and find out what works now, and what will work in the post-COVID world! Here’s a free one: Dirtbikes are selling great guns. Customers are getting units for themselves and their families. I’m predicting that street bikes will take off in the year after COVID-19. All of those people have been waiting for the turmoil to end will want to get out on the road. Pus, the DMVs will finally open for those who want new licenses. We’ll see…

Yes, our international man of mystery is a real dealer; no we are not going to tell you who he is. Saying the things that you are thinking, without risking getting the franchise pulled. The Anonymous Dealer has more than three decades experience at the dealership, in every position from porter to dealer principal.

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SOCIAL DISTANCING IS BETTER THAN RUBBING WEENIES! By Charlie Williams

ooking into my future. I can see about as far as the glasses on my nose. When the COVIDs closed the world down, all of our lives changed. Yet I watched the writers from Dealernews turn their vision forward and impart some splendidly good advice. Jared Burt’s article back in the March issue absolutely blew my mind. I had never even heard of the COVID and he was ready with a dealer survival guide! As a writer I’m stuck, dude, I can’t string two sentences together of any future value. I realize I’m a reporter struggling to keep pace after the fact, not a forward-thinking journalist like many on Dealernews dream team. Ladies and Gentlemen, I am again humbled to be in your circle, thank you for putting up with me. Now two months into quarantine, I can look back and tell you about what’s been happening, but for me to turn around and predict the future? I got nothing! Who would have predicted Murder Hornets? Just last night, rioters destroyed a square mile of downtown Indianapolis. Even at our worst motorcycle people never trashed the town

during Dealer Expo… many brain cells may have been destroyed and there were certainly some illicit burn-outs, but the downtown Indy area was never burned or looted. Protesters did a shitty job of it too, I think. I saw where they had burned their neighborhood bar in Minneapolis, well duh. Here they broke the windows out of the Wheeler Mission, where the homeless people get fed and sheltered. They may have the will, but they don’t really have a strategy. You thought you had a toilet paper shortage before, burn your local Target and where ya gonna go? Even the street shitters of San Francisco want tissue paper, I would think... So like many of us stuck at home, we’ve all been digging through old stuff and posting pictures of our own histories. It’s been awesome learning interesting things about people I’ve known for years. I scanned and uploaded 3500 slides of 1980s bike racing — National Enduros and National Hare Scrambles mostly. I’d guess that’s about half my collection. That collection is another story I’ll share later, but in that endeavor, I came across a mamilla envelope full of illustrations I had done around the turn of the century. Some are funny, all are true, but one in particular struck me poignantly as TRUTH for motorcycle dealers and our industry Expo. See drawing, Title “Rubbing Weenies,” I drew this in 2002 after visiting the Indianapolis Dealer Show. I’m not worried about hurting anyone’s feelings in the picture, these gentlemen have all moved out of the motorcycle industry and now sell CBD oil and cell phones. In other words, the recession of 2008 purged much that is wrong with our industry. Not that there’s anything inherently wrong with our industry, but it ebbs and flows. When the tide is high, non-motorcyclists take jobs with their only talent being not making waves. Do what you’re told and don’t make waves. Yes Sir, I learned that at University. So the problem is the guy giving out jobs is covering his ass by only hiring SAFE employees from his point of view. “He was an ideal hire, he didn’t cause one wave.” Ass covered. But, at the same time, he didn’t MAKE any waves, he didn’t lead the pack with soul and drive, he didn’t inspire his sport. Because it’s not his sport, it’s his job and he was not making waves. “Good Hire!” Well, they are back! I’ll share my experience. Last October at AIMExpo I had on my credentials that said PRESS and were a different color, no mistaking. I was in a riding gear booth and they had a cool riding vest on display. The label said medium, but I tried it on, knowing it wouldn’t fit (I’m a 2XL) but hoping one of the representatives would come help me.

Instead, paid representatives stood 10’ away in private conversation and ignored me. Okay, I hung the vest up and walked off. I came back an hour later and did the same thing … with the same results, only this time while I was stretching out the medium vest, an older than me lady (I’m 61) walked by and picked up a sticker. Both reps were on her like she was a buyer for Rocky Mountain! I never could get approached even when I brought my wife back and tried the ridiculous vest on for the third time! Reminds me of 2002 and Rubbing Weenies, maybe the new norm of staying 6 feet away from each other might break up the Weenie Rubbers? I think four inches would be enough social distance to break up most of them! The Murdering COVID Hornets may have kicked the leg out from under our industry, again, but it’s the perfect opportunity for the powersports industry to thin the herd, cut the fat. Instead of bringing back dead weight when you re-open for business, replace weenie rubbers and cell phone sellers with someone who really REALLY wants to be in the motorcycle industry. Someone who can inspire those around them, be it customers or co-workers, hire that guy. He might be a she as a good job knows no race or gender. But hire a true motorcyclist, if you can’t recognize a passionate sportsman, maybe you are not the right person for your job? Oops, more fat! Pull in the sails, batten down the hatches, throw all unnecessary cargo overboard — our little industry is in the middle of a storm! But we’ll be okay. The very nature of motorcycling is social distancing. Let’s get to it!

AIMExpo.................................................................... 42 CDK Global............................................................... 33 Central Powerstports Distribution (CPD)............. 7 Cycle News.......................................................... CVR4 Find It Now GPS Security......................................... 9 Fuel Capital Group, Inc........................................... 49 Hydro-Turf ............................................................... 13 Leineweber Enterprises......................................... 48 PSX Digital............................................................... 29 McGraw Powersports............................................. 21 MBA Insurance......................................................... 41

I’m thinking, virtually everyone I know in our industry are riders who can actually throw down. We are not friends because we work in the same industry, we are friends because we are motorcyclists. Our industry needs less weenie rubbers and more motorcyclists! So there you go, the world is right again!

Motorcycle Industry Council (MIC)........................ 61 Motorcycle Industry Jobs (MIJ).............................. 15 MotoTV...................................................................... 81 National Powersports Auctions (NPA)................... 5 Piloteer Agency....................................................... 65 REVVtalks................................................................ 59 SealSavers............................................................... 77 Sullivan’s.................................................................. 17 Tread Lightly............................................................ 63 Tucker Powersports................................................ 25 Yuasa......................................................................... 36

Shameless Plug – For the most up to date dealer news, check on the news feed at Dealernews.com, be sure to like us on Facebook and click on Dealernews’ monthly digital editions: www.dealernews.com

JUNE 2020

Ave Atque Vale Ron “RK” Stratman

ad. The very first Harley-Davidson licensee. A pro motorcycle racer. The eponymous owner of RK Stratman Inc. The creator of the world’s most photographed motorcycle, The Buffalo Bike. A leader. A visionary. A doer. My father. Of all the things he was known for, there was one moment in my life that stuck out more than any. I was racing motorcycles in the semi pro division of the AMA. I was okay, but I had no idea what I was doing. For anyone that doesn’t know, when racing, tire pressure is a big deal. Like as important as “does it have gas?” I asked him how much tire pressure I needed when we had driven up to this new race track in Wisconsin. But he didn’t answer. He looked at me. Looked at the bike. And asked, what do you think? The ornery bastard knew the answer. But the point wasn’t to help me win. The point was to make me learn. Of course I picked too high of a tire pressure and slid all over that track. Got third place and was pissed off. He liked to use the phrase “slicker than snot on a door knob.” God it would piss me

off when he said that… But I’ll tell you what — I learned about what kind of tire pressure to use right after that. Never had that problem again. He was incredible at making me a man. A real man. None of this fake tough guy bullshit. A real man never has to act tough. But instead be a person that takes responsibility, owns a mistake and corrects it. This was my Father’s greatest quality. He was not perfect. He never pretended to be. He messed up marriages, got angry at the wrong time, made dumb choices… But the glory of RK was that he wore it. Almost every other person I’ve met in my life spends so much time pretending to be perfect. Living in some strange world where they are always right and misunderstood. We are all pieces of shit at some point. Every one of us. Every person I’ve ever met my whole life who claims to be a good person. Is always the worst kind of person. But the more secure you are about yourself. The more you are willing to be open about your faults and your mistakes. That is what my dad meant about being a man. Ronny knew what he loved. I knew what he loved. We talked everyday about what we love. Harleys, exaggerating stories,

good looking women, our family, creating a business… and again exaggerating all of these stories! I loved my dad more than anything in this world. He was my idol. My true idol. From the first day I remember I wanted to be him. Calm, but loud. Abrasive, but confident. Assertive, but understanding. Long hair, Indian jewelry, Harley riding, no drug doing, on the dance floor twirling, no fucks given, RK STRATMAN! Yeah, I idolize the man who will dance to any song, work 48 hours straight and tell another man right to his face, “I love you.” There will never be another RK. But the world couldn’t handle another one. I don’t know about an afterlife. I’m probably not smart enough to have an opinion on it. But I know the mark his life left on this world is more than anyone could ever ask for. As my family sits inside and I type this on the couch in the back yard, all I can think is: I’ll get back to work dad. I’ll tell the people I love how much I love them. I’ll put on an obnoxious farewell ride for you, through the Black Hills. I will do everything I know you loved. Yeah, I’m sad you’re gone. And I wish I would have got to hold your hand a little bit longer the moments before you passed. But more importantly, I’m forever thankful for the body you gave me, this mind you molded and this soul that you let be free to become whatever it wanted. Live to ride, ride to live. Love, your boy. James Stratman

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