Archive for the ‘Powersports’ Category

Fun (and profit) in business

July 1, 2010

This story originally appeared in the Dealernews July 2010 issue.

Boil this business down to its bare essentials, and what do you get? An industry created around fun, recreation and excitement. Repeat those words three times: fun, recreation, excitement.

Sure, with sales down, the gloom index turned up to 10, and the possibility of your life’s work taking a nosedive, it has been easy to put fun, recreation and excitement in a corner. I’ve heard from many who say a variation of the following: “I’m spending so much time working that I don’t ride anymore.”

You spent the last two or three years foregoing fun, recreation and excitement so you could focus on the numbers. You had to, for pure survival. Well, enough. It’s time to get out. It’s time to put the fun back in our business.
When we started talking to dealers and industry-folk for this issue, asking them for ideas on how to make things fun again, we came away with three main ideas that are essential for injecting excitement into the business.

IDEA NO. 1 — Many people, including Dealernews columnist and industry man-about-town Eric Anderson (in turn quoting the legendary John Wyckoff), say to do this: Give your customers a reason to ride. So what are you doing to get your customers to swing their legs over their motorcycles, their scooters, their ATVs and their PWC?

Our cover dealer, Bill Cameron of Skagit Powersports (the 2010 Dealer of the Year, incidentally), takes this lesson to heart. Turn to page 24 to read about Skagit Powersports’ monthly track days and track day license program. Not only has Cameron given his Pacific Northwest clientele a reason to ride, he’s created a specific base of customers who are more than happy to spread Skagit’s gospel to friends far and wide.

Cameron, as some may already know, is adept at keeping the fun alive inside his business. He hosts the Warehouse Racing Association, a minibike racing series he holds in a rented building behind the dealership. Call Skagit, and if you’re put on hold, you’ll hear Cameron’s stream-of-consciousness voice-over on top of a Muzak background. He has a particularly unique sense of humor, positioning himself as more of an entertainment director than a business manager these days. Poultry even plays a part (when you get to the story, you’ll see why).

IDEA NO. 2 — Reconnect with your customers. You managers, come out of the office and start working the store again. Rick Fairless (owner of Top 100 dealer Strokers Dallas and another one of our columnists) often says that people don’t want to just buy from his dealership — they want to buy from “Rick Fairless.” He promotes his personal brand, and in doing so he’s on the floor, talking with customers, every single day.

Consider yourself your dealership’s own grassroots marketing plan. If your name is on the sign outside, your presence should be available to every employee and every customer.

IDEA NO. 3 — Give your customers ownership of their machines. Hold free service seminars. Create do-it-yourself service kits that enable customers to do some basic maintenance themselves. Work with them to accessorize their bikes. Promote rider training. Host rider training. Host rides.

This issue provides a number of tips and tricks for putting the fun back into the business, including some ideas straight from the Top 100 dealers. And if you need further help, check out the MIC’s Revive Your Ride program (www.reviveyourride.org).

There are many ways dealers can put the good times back into the business. But first we need to remind ourselves why we’re here in the first place. Fun, recreation, excitement. Make it a mantra.

Dennis Johnson
Editor in Chief
dennis.johnson@dealernews.com

Cellphones replacing loyalty cards?

June 1, 2010

By now your business surely has a Facebook fan page, and some of you are even actively using it to promote your store/product/whatever. We even know of some Top 100 dealers who offer Facebook-only specials to its base of fans — usually, a 10-percent off something or other special. It’s a brave new world, this social networking stuff, and it’s sometimes hard to tell if all the work keeping up with it is for naught. 

Sure you have 500 fans on Facebook, but what does this mean? Has it translated into more sales or door swings? 

Well, the New York Times is reporting on a number of social networking companies who are turning their social media skills towards programs that can help you track your more loyal customers — at least those who are actively engaged in Facebooking, Foursquaring, etc. 

There are already several tech companies — Foursquare, Shopkick, Gowalla and Loopt — that have turned shopping and visiting stores into a game. Consumers using the social apps on their smartphones mainly use them to “check in” to different locations to let their Facebook friends know where they are or where they’re shopping. They can also collect virtual points, prize badges and titles such as Mayor or some such. They’ve basically turned running errands into a game. 

Sound silly? Yes, sort of, until now. A couple of these companies have introduced partnership programs that allow you to reward loyal customers for coming into your store and “checking in.” This is basically mobile marketing that allows you to offer such perks as discounts or free gifts to loyal customers. The idea is that these targeted bonuses will help increase repeat visits in addition to foot traffic. 

The New York Times reports that such companies as Gap, Burger King and Universal Music have plans to use Loopt Star to reward loyal customers. The participating companies can tailor the program to offer different “rewards” for such actions as “checking in” a certain number of times, or give out an extra perk to those with a specific number of Facebook friends. Retailers can design “rewards” with their own graphics, special offers and the actions they’d like their loyal customers to take. These include:

  • check in to selected venues with Facebook friends
  • check in to selected venues and broadcast this on Facebook
  • check in to selected venues at certain times of the day
  • check in to selected venues a specific number of times  
  • Foursquare, the most popular of the “checking in” apps, allows businesses to offer Foursquare Specials, a program that includes a set of analytics to gauge consumer behavior. The free program allows you to collect behavioral data about customers such as:

    • most recent visitors
    • most frequent visitors
    • the time of day people check in
    • total number of unique visitors
    • a histogram of check-ins per day
    • gender breakdown of customers

    Foursquare also encourages businesses to promote their involvement with the service via Twitter, with signs at the cash registers or sidewalk signs, and can help stores market their Specials via window clings or through downloadable PDFs.  

    Here’s an idea. Why not combine the Motorcycle Industry Council’s Revive Your Ride program and one of these mobile marketing services to promote the upcoming riding season?

    It’s undoubtedly frustrating keeping up with technology when you’re running a dealership, especially the rapidly evolving social media world. But it might be worthwhile to investigate what’s out there as it’s very likely a large swath of your customer base is already clued into this stuff. Also, a lot of a it is free and who doesn’t like free?

    On the road with Joe Bonnello (aka Joey B’s California Gold)

    May 14, 2010

    We just got a message and a buncha great photos from everybody’s favorite shorts-clad photographer, Joe Bonnello. Seems Joey B. has been out and about, exploring the nooks and crannies of California, exposing his gams to the far reaches of this great state.

    We’d tell more, but Joe agreed to write us an account of his trip to the Quail Motorcycle Gathering in Carmel where he took some shots. Look down for Joe’s words and then keep going to see some of his pics. I like Joe’s style. Damn this makes me want to ride …… 

    The Ride. The Show. The Spring!

    So it goes like this — May in California is already summer, hot, dry, dusty, brown. But, this year, no!

    Cool, damp, g-r-e-e-n. Never happened I say. Gotta ride before the heat. Ride, ride I say. So, got the Cagiva ready. Found out the Quail was happening in Carmel. Got on the bike and headed across the desert to the mountains. Jumped into the twisties and proceeded to find every nasty, twisty, obscure and downright stupid road in California, all the way from Apple Valley to Monterey, and then back. Over Frazier Park. Around Taft. Across the inland mountains to Atascadero. Around the prettiest roads near Paso Robles. Through Hunter Liggett to the coast. Up spectacular PCH to Monterey, then to Carmel for the Quail Motorcycle Gathering.

    Lot’s of gorgeous bikes but no Quails in sight. Out over Carmel Valley, the back way around Coalinga (epic!), across the San Joaquin Valley on farm roads, up to the base of the Sierras to Bass Lake. Hook up with Larry Langley and David (more…)

    Online Retailers Getting Better at Service — How About You?

    April 1, 2010

    Does your dealership sell online? How’s your follow up? How are you helping your customers with the buying experience or are they just free to roam and stumble?

    Thought we’d pass along this bit of info from Internet Retailer magazine.

    According to E-tailing Group Inc., more online retailers have made their websites easier to shop and are responding promptly to consumer inquiries. The group’s 12th annual Mystery Shopping Study found that such top retailers/e-tailers as REI Co-op and Blue Nile responded to customer e-mails in less than 30 minutes.

    The study also found that the organizations E-tailing Group 100 study group allows shoppers  to sort site search results by price, category and brand. Also, most of these businesses link to social networking sites.

    Other interesting findings? About 60 percent of the businesses in the study group over guides, how-to content with audio and/or video on their websites. And a bit more than half offer video product demos on product pages.

    Keep in mind that these are the websites/retailers training your customers on what to expect from their internet shopping experience. Just as Nordstroms, Banana Republic, the Apple store, and Best Buy are training them what to expect of brick & mortar retailers.

    In other words, as time goes on and as new generations of people get into powersports — or when older enthusiasts return to riding — they are going to have an entirely different set of wants and needs from their retailing experience. What does this mean for your dealership? The best way to find out is to go out and shop the major retail stores in your area and take careful note of how you’re treated or mistreated. Steal, beg or borrow new ideas from those businesses who are competing with you for your customers’ expendable cash.

    2010 Multistrada 1200 Fever — Ducati Austin

    March 25, 2010

    These days you can’t swing a dead cat without hitting one story or another about the 2010 Ducati Multistrada 1200 and we here at Dealernewsblog don’t want to be left out of the loop. After all, who doesn’t want to get hit by a dead cat?

    Our pal Robert Pandya passed along some cool videos of Ducati North America’s Jeff Brooks giving a tech talk about the new bike to a group of committed Ducatisti at Ducati Austin. According to Pandya, close to 50 hardcore Multistradisti (is that a word?) lined up on a Sunday morning to get the low downistsi on the amazing tech and specs of this cool new ride-isti. (Remember 150hp!) Let’s just end the stupidity here and move onto the videos. Thank’s Robert!

    Ducati Austin 2010 Multistrada tech talk Pt1

    Ducati Austin 2010 Multistrada tech talk Pt2

    2010′s Top 100: Full Speed Ahead!

    March 1, 2010

    This story originally appeared in the Dealernews March 2010 issue. 

    With each new year comes a fresh new batch of Top 100 entries to dig into, read deeply, study long, poke around in and really get a sense of what dealers are doing in the world of powersports retailing. I think I’ll always be amazed by what I read.

    As many dealers and entrants point out, the competition offers the chance to benchmark their business, acting as a mirror in which they can check their store’s reflection. Given that most people considered 2009 a year they’d like to bury out behind the shed, we are happy to report that most of the entries indicated that those reflections were still able to fog up the glass a bit.

    In other words, 2009 may have sucked wind, but the dealers who entered the Top 100 competition demonstrated that they refuse to let a sour economy cow them into submission. While unit sales were down, we saw dealers pumping energy into growing P&A sales and service dollars. Some reported modest, but healthy growth in these areas, and indicated that they’re going to focus on more of the same for 2010.

    Marketing and advertising dollars were also in short supply, leading many owners and managers to finally learn exactly what technology could do for them. Text message promotions. Social networking. Online advertising via Google AdWords and other sources. E-mail newsletters.

    We receive submissions from dealerships of all shapes and sizes, ranging from elaborately prepared photo album presentations to quick-and-dirty handwritten entries. All highlight some of the most hard-charging and creative dealers on the continent.

    There was one entry that struck me, that from Doug Douglas Motorcycles, which seemed to embody the criteria on which the competition is judged. It is probably one of the most heartfelt entries I’ve ever read. A 3,500 sq. ft. Triumph-only store in San Bernardino, Calif., the shop is a throwback with a twist. Much like Triumph’s lineup of modern classics, which blend old and new, the store seems to easily represent yesteryear’s greasy aesthetic while maintaining a very modern front. This is especially interesting considering the store survives in the shadows of two of the largest dealerships in California — Bert’s Mega Mall and Chaparral.

    The store’s been in the same building since 1963 in what is still a residential neighborhood. And much like the old-time barber or grocer, they think of themselves as the neighborhood bike/repair center. They’re not completely old-timey. One staff member, a student at nearby California State University, San Bernardino, came up with a plan to display bikes and clothing on campus. In addition to the display, they also set up a booth to accept credit applications, “The results are that Triumph is now well-represented in the parking lot at CSUSB.”

    Intrigued, I snooped around Yelp and the store’s Google Maps page and read outstanding customer comment after comment. Sure, online reviews can be gamed, but it’s rare for a list of online reviews to not include at least one or two displeased cranks.

    I get a taste of the dealership’s spirit from two things: First, this description of founder Doug Douglas from the store’s website’s “Our Staff” page: “Founder of the company and part owner. Former national caliber racer that’s won the prestigious Baja off-road race more than once and set a solo record in the process. Grouchy, hard of hearing and the best mechanic you’ll ever know.”

    And then this line from the Top 100 entry: “What Doug Douglas Motorcycles lacks in fancy architecture, upscale location or slick-Willy ad campaigns, we make up for with heart and the determination to continue to provide the good people of the Inland Empire with a motorcycling alternative. We don’t win customers with a Crystal Cathedral, instead we treat them with respect, straight-forward answers and a fair price and let the chips fall where they may.”

    Yes, we celebrate modern retailing, encourage dealers to raise the bar, and are blown away by the powersports meccas built by some, but there’s something special about shops like Doug Douglas, stores that offer a direct link to the industry’s past.

    Dennis Johnson
    Editor In Chief
    dennis.johnson@dealernews.com

    FirstGear TPG Apparel Road Test: There Will be Rain

    February 22, 2010

    Back in the fall, we had a chance to head out to Colorado with Tucker Rocky and FirstGear to check out the TPG lineup of apparel. This is pretty high-end stuff aimed at the hardcore adventure touring rider, the type of person who thinks nothing of clocking 50,000 miles a year on two-wheels, often in less-than-pristine conditions. I am not one of those people. However, I was up for a dual-sport ride through the Rockies with the chance of experiencing some weather and putting the TPG duds to the test. Well, we got weather. Rain. Sleet. Hail. All that stuff that’s mostly foreign to So Cal natives (me!). 

    So, you’ve got to hand it to Tucker Rocky and FirstGear for picking a such a route and ride as a way to showcase the features of its TPG (Technical Performance Gear) apparel. They either had strong foresight into what we might encounter or had some major pull with certain parties to arrange that kind of weather.

    Click here for the full story.

    Powersports: The Lost Decade? Not Really

    February 1, 2010

    This story originally appeared in the Dealernews February 2010 issue.

    I have yet to see the final MIC numbers for 2009, but dealers likely retailed about 500,000 new motorcycles and scooters made by the major brands. This is roughly the same number they retailed in the late 1990s. For all you industry veterans, wouldn’t it be great if you could just downsize to your 1999 staffing and advertising levels, and call it good? The OEMs and aftermarket could do the same. With all the recent layoffs, maybe that’s what they’ve had in mind.

    If only it were that easy. For one thing, technology and the Internet have changed how business is done. Today there are dealership duties that didn’t exist a decade ago. Even our favorite V-twin hippie, Rick Fairless, has computer people on staff. Turn to page 18 for some insight into how he’s built one of the smartest websites I’ve visited. It’s plain fun.

    Technology doesn’t necessarily mean more overhead: It can save money in man-hours and advertising. Fairless, for example, explains how he’s stopped spending money on the Yellow Pages. Another columnist, Eric Anderson (page 28), talks this month about digital signage that acts as a silent salesperson on steroids. (more…)

    Brett Smith Named Head of Baja Motorsports

    January 28, 2010

    Former Custom V-twin Executive Leads Chinese Importer/Distributor

    Brett Smith, former president of S&S Cycle, one of the leading names in American motorcycles, has been named head of  Baja Motorsports‘ U.S. operations. Smith currently is traveling in China where he is visiting Baja factories and component suppliers.

    Brett Smith

    I’ll be providing more information on this major move when Smith returns to the U.S. and gets settled into his new position. In the meantime, here is information on Smith and Baja in a Q&A session that I developed with Smith.

    Baja Motorsports is based in Tempe, Ariz., where it operates a 70,000 sq. ft. parts, service and warehouse/office facility. It sells Chinese-made powersports equipment primarily through big box retailers such as Pep Boys. Service is provided through a network of some 1,000 independent service shops in North America.

    Baja was launched in 2004 by Richard Godfrey, president and CEO, Jennifer Andrew, vice president of operations/CFO, and Ryan Daugherty, vice president of sales and marketing. In the first year, Baja posted sales of $6.5 million.

    (more…)

    One last glance back at 2010

    January 5, 2010

    Much like the relief felt when removing a large splinter from the palm of your hand, we can all look back at the close of 2010 with a collective PHEW! So we sigh, wipe our brow and move on.

    There have been worse years, and from what we’ve heard, 2009 was one of them for our industry. It’s just that early on in 2010, things were looking a bit more sunshiny before the whole shebang went down the crapper. Sales didn’t pan out. Consumer credit stayed tight. Customers weren’t parting with their money. Some dealers experienced a bounce toward the end of the year, but all in all, it was fairly dismal.

    So, what does 2011 bring? We don’t know, but there’s always something more optimistic about looking down the barrel of an unknown future than back at the dust and debris of a year gone by/bad.

    To help gauge what the coming year has in store, we asked our readers — dealers, manufacturers, distributors and vendors — what mistakes they made in 2010. More importantly, we asked them to tell us what lessons they learned from those mistakes and how they’ll use them to help shape their future (2011 at least). Click on this link to see what they had to say.

    There were a number of surprisingly candid responses, for which we’re thankful. One such message came from Brian Klock, the famed custom bike builder, small-scale manufacturer and owner of Klock Werks in Mitchell, S.D. I felt his story served as a microcosm of what the industry’s been going through. So, if you think you had a bad year, you should have been at Klock’s business when it flooded out twice in 60 days last summer. Lost revenue. Piled-up backorders. A big ol’ mess. Yes, Werks got worked.

    But I’ve met Klock, and the man is amazingly upbeat, even when facing a business under 5 inches of water. He said the incidents helped him realize that the most valuable assets his business has are his employees, whom he credited with helping rebuild the business and the brand. He also thanked his vendors, industry friends and fellow businesses for the support they gave him. “While rebuilding our facility, we have ‘rebuilt’ our relationships. Working with our suppliers and distributor to better forecast, cut costs and expedite delivery — all were lessons learned and will make us an even better company,” he says.

    Sounds like good advice, even when not facing a flooded-out building. Klock says that this year he’ll focus on customer service and education, using his experiences to help relate to those with tight finances and a need for low overhead. He predicts that the market will stay tight, but that everybody in the industry needs to work to repair the damage caused by “being lazy when the market was at its peak in 2005-2007.”

    “The camaraderie that is motorcycling needs to be revitalized between manufacturers, dealers and consumers,” he added.

    Yes, his message about rebuilding is uplifting, but it was the following lines that really caught my attention. In traveling around the country, Klock says he noticed a lack of customer contact inside brick-and-mortar stores. “Employees need to pull away from their computers so I don’t shop at mine. If we want people to have a great motorcycle experience, make sure our employees offer friendly communication and are informed — don’t drive them
    to Google.”

    Dennis Johnson
    Editor in Chief

    This story originally appeared in the Dealernews January 2011 issue.

     


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