November 11, 2009 by Joe Delmont
This article is from the October 2009 issue of Dealernews. Note change in fourth paragraph to correct information that ran in the original story.
How would you like to sit in on a management meeting while the team battles to turn around a faltering dealership — one that lost close to $1 million from its two stores last year? Would you find it more interesting if the managers were part of a new ownership team — one that has a proven track record of improving dealer performance?
I thought you might. I recently had the opportunity to listen in on this very scenario in an hour-long session — the first of many. It was educational and filled with surprises.
It’s all part of a new, multimedia sponsor-supported dealer educational program called Dealer Lab, brought to you jointly by Dealernews (and its numerous digital outlets) and PowerHouse Dealer Services. PHD is run by Bill Shenk, and is a recognized dealer training organization and provider of powersports dealer 20 groups. EBay is a major sponsor of the project.
Here’s the situation: Shenk, a former dealer, has been helping dealers improve their operations for 10 years as a consultant and as head of PHD. In July, he had an opportunity to put his ideas into practice when he took over management of Florida Motorsports, which has stores in Naples and Punta Gorda, Fla. (He also has an agreement in principle to buy an ownership interest in the store.) The dealership wasn’t in good shape — in fact, it really did lose nearly $1 million on operations in 2008.
Read the rest of this entry »
Tags: Bill Shenk, dealer lab, dealernews, experiment, joe delmont, management, sales
Posted in Powersports, dealernews | 1 Comment »
November 3, 2009 by dealernewseditor
By Guido Ebert
Research shows that the two main reasons consumers often dread visiting motorcycle and automobile dealerships are 1) the disrespect inherent in being ignored while on the showfloor, and 2) the way in which salespeople tend to descend upon them like hawks on a field mouse. Polar opposites, but equally harmful to the selling process.
I make it a habit of visiting the five local dealerships near my home in the Minneapolis area. While I’m greeted like a long-lost friend at three dealerships — Hitching Post Hopkins, Leo’s South and Scooterville — at the fourth dealership, I often spend 20 minutes walking the showfloor, milling around the Ducati, Triumph and KTM sections, without anyone speaking with me. At the fifth dealership I’m followed around like I’m a thief on the prowl, explained every vehicle or product I stop to take a look at, and never left to simply enjoy the practice of “browsing.”
Ignoring the customer has obvious drawbacks and has long been taught to be among the top reasons for losing a possible sale, but is attempting to capture and control the customer — considered a “must-do” in many sales textbooks — any better for the selling process?
Some sales trainers working in the industry now say selling shouldn’t be a matter of controlling the customer, but a matter of creating a fan of Read the rest of this entry »
Tags: dealernews, editor's letter, editor's note, magazine, november
Posted in Dealer, Dealer Training, dealernews | Leave a Comment »
November 2, 2009 by Joe Delmont
If you’re waiting eagerly for 2010 to bring your business a boost, I’ve got some disappointing news for you. There isn’t going to be a big industry turnaround next year, and your friendly local lender probably isn’t going to give you as much money as it has in the past. Tight credit — in both commercial and retail segments — is going to keep the lid on spending and will continue to make it tough to run a business.
Even if lenders decide to turn on the money machine, there are indications that consumers aren’t willing to take on any more debt. That means if your prospects can’t pay cash for a new machine, they’re probably not going to buy one.
Let me be clear about this: I don’t think that the motorcycle industry is going away, and I don’t think that riders have lost their passion for the sport. I do think, however, that the salad days of fast sales and gushing credit that we’ve enjoyed for the last half-dozen years are gone for a long, long time.
Don’t look for any improvement until 2011 at the earliest, unless the credit Read the rest of this entry »
Tags: credit, F&I, Finance, holiday, shopping
Posted in Industry News, Motorcycle, dealernews | Leave a Comment »
November 1, 2009 by Arlo Redwine
![Opener[1]](http://dealernewsblog.files.wordpress.com/2009/11/opener12.gif?w=150&h=150 "Opener[1]")
The embargo on Arai’s new RX-Q street helmet ends today, and I’m thrilled to see the Dealernews.com article on it comes up No. 2 in a Google search. (Click here to read it.) The folks at Arai stopped by our office a couple of weeks ago to give us a presentation, and left us with information and images. They didn’t donate samples because they only had a few, including a size medium straight from Japan. I tried it on, and (surprise, surprise) it felt great. Qualitywise, this will be another winner hitting the market in late December or early January and retailing for roughly $675.
Does the price sound kinda high? Arai says it’s positioning the RX-Q between the Profile and Corsair-V. In fact, the company is marketing the model as a Corsair-V for the street. I think the helmet is a knockout, but how eager are dealers right now to stock this price point? Tucker Rocky president Steve Johnson told me this past summer that sales of high-end brands are suffering the most. He even mentioned Arai as an example.
Then again, Arai’s timing may not be as bad as it seems. I just heard on TV that the recession is technically over due to the rise in GDP. And although unemployment will remain high for a while, people who haven’t lost their jobs should feel more confident they won’t — and may start spending again. Read the rest of this entry »
Tags: Arai Corsair-V, Arai RX-Q, Arai Signet GTR, Bell Star, high-end helmet sales, Shoei RF-1100, Shoei X-Twelve, Steve Johnson, Tucker Rocky
Posted in Uncategorized | Leave a Comment »
October 30, 2009 by Dennis Johnson
There was a lot of good information that came out of the recent Motorcycle Industry Council Symposium
(Inroads to the Future) and believe it or not we plan to get that stuff up over at www.dealernews.com. So, until we carve out a chunk of time to write up some stories on what Paul Leinberger had to say and on the new Revive Your Ride program backed by the MIC Aftermarket Committe, we’ll do some quick and dirty here on the blog.
The MIC/DTM’s Ty van Hooydonk gave a brief presentation on the green angle (the Environment!) of motorcycling. Much has been said about this, especially during last year’s felonious sadistic high gas prices. Maybe too much as there have also been studies showing that motorcycles produce far more pollutants than cars. But Ty’s message was an attempt to move beyond the emissions argument for more of a total approach. Rather than parse what he said and try to re-explain it, Ty was kind enough to pass along his presentation that we’ll present in its entirety. Thanks, Ty.
The MIC is working to refine our green message for motorcycling, with some help from Sierra Research, which is one of the leading research and consulting firms in the field of air pollution control, and with Tom Austin Read the rest of this entry »
Tags: Motorcycle emissions, Motorcycle Industry Council, motorcycles
Posted in Industry News, Motorcycle | 1 Comment »
October 26, 2009 by Dennis Johnson
We recently received the the Fall 2009 issue of “The Cyclist,” the official newsletter of the Florida Motorcycle Dealers Association.
In his column, association president Joe MacGuire offers some very clearheaded advice to fellow dealers. (MacGuire’s the president of Euro Cycles of Tampa Bay, a BMW, Ducati, Moto Guzzi and Triumph dealership in Odessa.) Although some of the language is directed a dealers in the Sunshine State, the overall message is applicable to any dealer anywhere.
We thought it was too good to pass up, so with MacGuire’s permission here is his Fall 2009 President’s Report in its entirety.
Straight Talk in a Tough Economy
by Joe MacGuire, FMDA president
Greetings, fellow dealers. I was thinking about the current economic times and was reminded of a story my father used to enjoy telling. I grew up out West during a time when there were still large tracts of land without any fences. Sheep ranchers would hire herders, usually Irishmen in those days, to watch the flocks. The sheep were allowed to range freely while they grazed.
One day, a wonderful old herder named Dan was lounging on the grass of a hllside watching his band of sheep below. Dan Read the rest of this entry »
Tags: Florida Motorcycle Dealers Association, Joe MacGuire, Motorcycle dealership
Posted in Dealer, dealernews | Leave a Comment »
October 23, 2009 by Dennis Johnson
In the world of riding gear, there are two notable shortcomings.
1. It’s only recently that women riders have been able to find protective riding gear that isn’t just a small version of something built for a man. Even so, there are a handful of apparel manufacturers doing anything that could be called fashionable. The cut and build might be made for a woman, but the aesthetic is still lagging a bit (in my What Not to Wear-influenced perspective).
2. Riding apparel designed to appeal to scooter riders. (Hurray to Corrazo and Armadillo for helping to fill this niche!)
Apparently Arlene Battishill discovered this too when she started riding a scooter during the 2008 run up
- photo from ScooterGirls Inc.
in gas prices (and subsequent explosion in scooter sales). Like any good entrepreneur, Battishill got to thinking about how to solve this problem. What she’s come up with is ScooterGirls Inc. and its lineup of highly-styled riding apparel for women scooterists and motorcycle riders. Read the rest of this entry »
Tags: Armadillo, Corrazo, GoGo Gear, scooter apparel, ScooterGirls, Women, women's riding gear
Posted in riding gear, scooters, women riders | 3 Comments »
October 18, 2009 by Arlo Redwine
Why has the industry allowed so many vendors to compete against their own dealers through online sales? Shouldn’t everyone respect the supply channel? Or do some vendors have legitimate reasons for selling directly?
Two years ago, I was attending an annual meeting of MIC members when a guest speaker told the 200 assembled vendors that they all should be selling online. “The most important way for the aftermarket to sell is the Internet,” the market analyst said. “Companies used to be worried about how it would affect their retail establishments. That way of thinking has gone by the wayside.”
This comment surprised me. When the analyst asked for questions, I asked whether he believed motorcycle dealers in particular no longer cared whether their suppliers sold directly. He gave a quick affirmative and left the stage.
Read the rest of this entry »
Tags: 50 Below, ARI, Chaparral Motorsports, consumer-direct sales, Crystal Ashby, Fox Racing, Fred Fox, Kawasaki, LeMans, Motorcycle Superstore, online sales, Parts Unlimited, PowerSports Network, powersports supply chain, Saddlemen, Scorpion Sports, Shift, Shopatron, undercutting
Posted in Baker Drivetrain, Dealer, Uncategorized | 44 Comments »
October 15, 2009 by Guido
Harley-Davidson has carved a lot of pork, and jobs, during the past year, and now the move to end production of the Buell line and sell off its recently-purchased MV Agusta business has people buzzing anew about the way the Motor Co. has chosen to streamline its operation.
Here are some thoughts gleamed from a surf through some of the social networking sites:
Gutted that Harley has pulled the plug on Buell Motorcycles. After all of Erik’s struggles and hard work developing improved product, he deserves better than that. – Kevin
No matter what you think of HD or Buell product, you have to respect Erik Buell’s independent and creative thinking. Sorry to see you go Buell. – Glenn
Victims of Hope and Change? – Robert
I feel for all those who have been laid off … but I keep thinking there is more to come from Buell. – Greg
Buell gone; MV on the block!? Whats next? Price drops on Fatboys and baggers? – Jeffery
Why didn’t they dump their latest European acquisition instead of wiping out more American jobs? As an American manufacturer, it sickens me to see HD become just another company making a profit at any cost. – Chris
A day of mourning for American Sportbikers … regardless of what you ride. Buell, you will be greatly missed! – Brittany
I am truly bummed about Buell going under. I wasn’t a die hard Buell fan but it was nice to see a company like that succeed. – Aaron
It seems that we have let another American Motorcycle Company go by the way side my friends, and what a shame! – Patrick
Learn more about H-D’s decision by clicking HERE.
Tags: 2009, buell, dealernews, guido, H-D, harley-davidson, Italy, Milwaukee, Motorcycle, mv agusta, sportbike, Streetfighter, V-twin
Posted in Erik Buell, Milwaukee, Motorcycle, OEM, Powersports, Streetfighter, V-twin, dealernews, harley-davidson, mv agusta, sportbike, superbike, transportation | Leave a Comment »
October 15, 2009 by Dennis Johnson
Harley-Davidson announced its third-quarter results today and BOY do things look ugly.
earnings down 71 percent
U.S. retail motorcycle sales down 24.3 percent
To discontinue production of Buell motorcycles.
Remaining inventories of Buell motorcycles, accessories and apparel, while they last, will continue to be sold through authorized dealerships. Warranty coverage will continue as normal for Buell motorcycles and the Company will provide replacement parts and service through dealerships.
Company to immediately begin plans to sell MV Agusta.
More to come later today on www.dealernews.com from Guido Ebert, who is sitting in on third quarter conference call.
Tags: buell, harley-davidson, mv agusta
Posted in Buell Blast, harley-davidson, mv agusta | Leave a Comment »
Dennis Johnson
Joe Delmont
Arlo Redwine
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