Motorcycle & Powersports News, February 2014

MotorcyclePowersportsNews.com

FE

B. 2014

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OL. 40 N

O. 2

02.2014

Plus:

• Eric Anderson's Confessions • Vetesniks Power Sports • UTV Tires & Accessories

Ricky Carmichael University teachesstudents everythingthey need to know fromthe Greatest Of All Time

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2 February 2014 | Motorcycle & Powersports News

Contents

Volume 40 Number 2MotorcyclePowersportsNews.com

EDITORIAL

Editor – Brendan [email protected]

Editor-at-Large – Robin [email protected]

Managing Editor – Greg [email protected]

Columnists & Contributors

Eric AndersonSteve Dodds IISteve JonesMark RodgersGary IlminenJim Woodruff

ART

Sr. Graphic Designer –Tammy House

[email protected]

Official Publisher of the AIMExpoShow Daily, Directory and SouvenirProgram

Dealership Operations

Celebrating 40 Years of MPN .....................................................................................................................4The Road Ahead by Brendan Baker

Shifting Gears ............................................................................................................................................................................12All the News that Fits by Robin Hartfiel

HIP-sters vs. HIP-pies ..........................................................................................................................................14Confessions of a Customer by Eric Anderson

December in Review..................................................................................................................................................18NPA Pre-owned Monthly Recap by Jim Woodruff

Seperating the Best From the Rest ......................................................................................20Finance & Insurance by Steve Dodds II

Dealer New Units in Stock ..........................................................................................................................22Inventory Report by ADP Lightspeed

What Makes Them Click?...................................................................................................................................28Peak Dealership Performance by Mark Rodgers

Yamaha Unviels Lease Programs .............................................................................................31PWC Update

Do You YouTube? .................................................................................................................................................................32Web Savvy by Heather Blessington

Off Road Gear Essentials ...............................................................................................................................38Moto Gear

2013 Year End Dealer Data Report.........................................................................................44Best Operators Club by Steve Jones

The Real Winners at the Anaheim Supercross ......................................48Pit Pass

Ricky Carmichael University:Inside the Legend’s TrainingProgram By Robin Hartfiel

MPN (ISSN 0164-8349) is published monthly by Babcox Media, Inc., 3550 Embassy Parkway, Akron, OH 44333 U.S.A. Phone (330) 670-1234, Fax (330) 670-0874. Periodical postage paid at Akron, OH 44333 and additional mailing offices.POSTMASTER: Send address changes to MPN, P.O. Box 13260, Akron, OH 44334-8660. A limited number of complimentary subscriptions are available to individuals who meet the qualification requirements. Call (330) 670-1234, Ext.242, to speak to a subscription services representative. Paid Subscriptions are available for non-qualified subscribers at the following rates: U.S.: $69 for one year. (OH residents add 5.75% sales tax) Canada/Mexico: $89 for one year.Canadian rates include GST. Other foreign rates: $129 for one year. Payable in advance in U.S. funds. Mail payment to MPN - Circulation, P.O. Box 75692, Cleveland, OH 44101-4755.

UTV Tire RoundupAn All-Star Line Up of ATV and UTV Tires .................................... 34UTV AccessoriesExtras to Outfit Your UTV Offerings.............................................. 36

UTV Tires &Accessories

Cover photo by Lissa Marsolek Photography

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January was a busy month for us and for many of you as well. The AMA Supercrossseason kicked off in Anaheim while winter set in for most of us back East. But we did

get to spend part of the time in sunny California, visiting with some of you in the industry.Seeing you at trade shows and talking to you on the phone is great, but it’s not the sameas being able to visit you at your place of business and see your day-to-day operations upclose. One of our visits included a stop at the new Italian Trade Commission offices in LosAngeles, where they not only fed us snacks but unveiled a new logo, too.

We headed back home to Cleveland just in time to visit the International MotorcycleShow. And while the weather outside was frightful, the show inside was rather delightful asthere was a large crowd all three days, and exhibitors were more than pleased with theturnout. Of course, one of the biggest attractions was theUltimate Builders Competition, which our friends at NorthernOhio Ducati Triumph took second place in with their ratherunique GT1000 café bike.

Finally, for those of you old enough to remember andexperience the decade of the ’70s for what it was, whichwere glory years for many in the motorcycle industry inmany ways, this year marks some milestones: “GoodTimes” premiered on CBS. People Weekly magazine's firstissue was released with actress Mia Farrow on the cover.Barbra Streisand got her first #1 hit song with, "The WayWe Were." The F-16 fighter jet flew for the first time. Theoil crisis of 1973 came to a close as most OPEC nationsended their months-long oil embargo in March of 1974.

Lost in these headlines was the launch of a littlepublication aimed at motorcycle dealers. Issued at the endof 1973, the first edition was called the Motorcycle Trade Directory.I’m sure someone still has that one laying around. This directory wasreally the beginning of the monthly magazine MPN, but it wasn’tuntil Issue 2 that it became Motorcycle Product News. Both issueswere considered Volume 1 with Issue 2 being published in June of’74. Why the boring details about issue and volume numbers? Well,depending on what you take as our first issue, this year marks our40th anniversary. I am barely that old myself and I have quite a fewaches and pains, but MPN still looks great for its age. We will gointo the archives throughout the year to celebrate this momentous milestone. t

Brendan Baker, Editor

AHEAD

THE

RoadBy Brendan Baker

ADVERTISING SALESPublisher - Greg Cira [email protected]

(330) 670-1234 ext. 203

Associate PublisherSean Donohue [email protected]

(330) 670-1234 ext. 206

Display Advertising Sales

Roberto Almenar [email protected](330) 670-1234, ext. 233

Tom Staab [email protected](330) 670-1234, ext. 224

Bobbie Adams [email protected] (330) 670-1234, ext. 238

Doug Basford [email protected] (330) 670-1234, ext. 255

David Benson [email protected](330) 670-1234, ext. 210

Dean Martin [email protected] (330) 670-1234, ext. 225

Jim Merle [email protected] (330) 670-1234, ext. 280

Glenn Warner [email protected](330) 670-1234, ext. 212

John Zick [email protected] (949) 756-8835

Don Hemming [email protected] (330) 670-1234, ext. 286

ADVERTISING SERVICES

Advertising Services Valli Pantuso [email protected]

(330) 670-1234 ext. 223

CIRCULATION SERVICES

Circulation Manager –Pat Robinson [email protected]

(330) 670-1234, ext. 276

Circulation Specialist –Star Mackey [email protected]

(330) 670-1234, ext. 242

For show publications advertising information call Sean at 330-670-1234 , ext. 206.

AFTERMARKET MEDIA NETWORKBabcox Media Headquarters

3550 Embassy Parkway, Akron, OH 44333(330) 670-1234 Fax (330) 670-0874

Babcox Media California18004 Skypark Circle, Suite 260, Irvine, CA 92614(949) 756-8835 Fax (949) 756-8836

CORPORATE

Bill Babcox, PresidentGreg Cira, Vice President, Chief Financial OfficerJeff Stankard, Vice PresidentBeth Scheetz, Controller

Copyright 2014, Babcox Media, Inc.

Official Publisher of theAIMExpo Show Daily,Directory and SouvenirProgram

A Golden State, Italian Opening,Motorcycle Show and Turning 40

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RE: BACKFIRERE: Babcox Announces Addition Of Anderson

Glad to hear that Eric Anderson is gainfully employed and nolonger sponging off the unemployment coffers … well at least hiscolumn has found a new home. Hopefully, others will read Eric's“Confessions.” Unfortunately, those who need it most will be theleast likely to read or act. My latest rant is regarding the prolifera-tion of “cookie cutter” stores, offering the consumer nowhere toshop for the newest, coolest stuff other than the Web.

Harley-Davidson, BMW, Ducati, Triumph… all have cookie cutter stores. Even though I have three Duc’s, I rarely browse anyof the six Ducati dealers in my territory as they all have the sameaccessories on the same shelf of the same kiosk in the same place on the same black slate floor. I’ll know it’s time to retire whenI see Ural stores with this format appearing in my territory!! But seriously, if Mr. Dealer buys into the "Brand" image thing and displays only the OEM stuff, so the consumer’s only option is tolook for his new jacket online. He may, after sitting in his under-wear at 2 a.m., determine the gear his dealer had is his choice, but

now he’s homeand....“Well, I’ll order itonline.” Don’t have totrek back to saiddealer…

Paul SchwabWPS, Inc.

RE: Eric Anderson On Board, Part II

Good to see a knowledgeable guy like Eric Anderson joiningthe staff at MPN. Congrats!

Dennis Cox, PublisherDirt Illustrated

RE: Two For One

I just saw the newson Robin Hartfiel andEric Anderson joiningMPN's team. Congratula-tions! MPN now has thebest and the brightest inthe business.

Frank Esposito, PresidentKendon Industries, Inc.

Editor’s note: Thanks for your replies, we are doing our bestto make MPN relevant to its readership. If there are industry issues that we should be addressing, please feel free to let usknow. We welcome all comments, criticisms and commentary!Motorcycle & Powersports News is your publication and wewant to know what is on your mind. Please send your letters [email protected]. t

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IndustryInside the

MotorcyclePowersportsNews.com 7

AMA Pro Racing Competitor Tommy Aquino Killed

in Motocross Crash

AMA Pro Racing is deeply saddened by the tragic loss ofcompetitor Tommy Aquino on Feb. 2, 2014.

Aquino was involved in a two-rider accident at a motocrosstrack near Santa Clarita, Calif., where he was pronounced dead andthe other rider seriously injured. Aquino was just 21.

During his years as a valued member of the AMA Pro RoadRacing community, Aquino became known for his racing talent.Aquino earned a victory on a YES/Graves Motorsports Yamaha inthe Daytona SportBike class atNew Jersey Motorsports Park in2011. Last year Aquino competedin the British National Series.

Aquino was a sponsored rider with LeoVince USA. Thecompany’s President and CEO,Tim Calhoun, released thisstatement:

“A sincerely sad day for American road racing as it wasannounced ... that Tommy Aquino died while training at a PiruCalifornia motocross facility. From myself having watched him fromamateur to pro rider my heart aches for his family. My thoughts andsincerest condolences go out his parents Carrie and Tom Aquinofor their loss.” t

Giant Loop Expands Canada Distribution

with Motonation Canada

Adventure-proof packing systems innovator, Giant Loop, hasappointed Motonation Canada as its international distributor inCanada. Headed by powersports veterans Syl and Shawna Marleauand Vince Harker, Motonation Canada imports and distributes topmotorcycle exclusive brands such as Sidi, Forcefield, AGV Sports,Vemar, Powerlet, Mefo Tires as well as Rox Risers and Techniche.

Sly Marleau manages dealer sales for Motonation. Previously, hewas Klim Canada’s Eastern Canada sales manager, PowerletCanada distributor/sales manager, and he previously worked asdistrict sales manager for Yamaha Motor Canada for 12 years. Hecreated the brand image for Klim in Eastern Canada. Marleau isbased in Keswick, Ontario.

Shawna Marleau manages eastern operations, supporting Syl,who is on the road visiting dealers throughout the year.

Former owner of DCI Sales, Vince Harker founded the companyin 1995. He is business manager for Motonation Canada and isbased in Magrath, Alberta.

Giant Loop’s adventure-proof motorcycle gear packing systemsare available from select international distributors, as well as from anetwork of premium dealers throughout the USA. t

Dealers Kick Start Inaugural Husqvarna Motorcycles

Conference at Anaheim Supercross

Many of North America’s top powersports businessprofessionals converged in Anaheim this past Saturday, Feb. 1,2014, for a night of fun and racing before preparing to head toTemecula, Calif. where they will become part of the historicrenewal of one of the most venerated brands in motorcycling.



The 300-strong group spent Saturday evening tracksideenjoying round six of the AMA Supercross series – a suitableprecursor to the days ahead – before heading to TemeculaWine Country where they will learn about the all-newgeneration of Husqvarna Motorcycles, join in the christeningof the brand new company headquarters, meet keymanagement and enjoy some product sampling.

“Just like their customers, motorcycle dealers are adrenalinjunkies, too,” said Brad Hagi, VP of sales, HusqvarnaMotorcycles North America, Inc. “With all the excitingproducts and initiatives we’ll share with them this weekend itseemed natural to bring them here to a Supercross race tokick off this historic event.”

Since the acquisition of Husqvarna Motorcycles just over ayear ago, this is the first time current and prospective dealerswill have the opportunity to see what form the iconic brandhas taken. Following Saturday’s fun in Anaheim, dealers willparticipate in the unveiling of the new U.S. companyheadquarters in Murrieta.

Over the course of the weekend participants got to knowthe people behind the brand and learned about the initiativesof the brand. The conference wrapped up with a day of ridingand evaluating the all-new Husqvarna Motorcycles at TheRanch in nearby Anza, giving dealers the “hands-on” feel forthe models and accessories that will soon be on theirdealership floors.

“It’s been a busy year behind the scenes,” Hagi added.“We’re very excited to pull back the curtain and showeveryone what we’ve accomplished. We’re really excited tohave the all-new Husqvarnas start arriving in dealerships asearly as March.” t

MotorcycleIndustryJobs.com

Celebrates 10th Anniversary

Whether you just graduated from theMotorcycle Mechanics Institute or have beena front-line sales pro for the past 25 years,prospective employers still need to know youare available. MotorcycleIndustryJobs.comhas specialized in getting qualifiedcandidates presented to everyone from theleading OEMs and aftermarket operations allthe way to the dealership level for the past 10 years.

“Even if you are currently employed, weencourage you to upload your resumetoday,” says MIJ founder, Alex Baylon.“Hundreds of opportunities never get postedon MIJ, but prospective employers browsethe MIJ resume database everyday. Even ifyou’re not looking for a new opportunity, anew opportunity could be looking for you.”

The first step is to register and post aresume. To facilitate this process, MIJsoftware allows job seekers to build up to five

Inside the Industry


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resumes with five distinct cover letters.Using a Web application template,upload any type of file, or upload yourLinkedIn data. You can also add photos,upload videos, attach files and previewyour resume before it gets posted. If youhave already created a resume forLinkedIn, register using your LinkedInaccount to allow resume auto fill andsynchronizing.

Further expanding the reach is aseries of strategic partnerships withleading websites ranging fromMotorcycle & Powersports News andCycleTrader.com to Facebook, LinkedInand Indeed.

“For your convenience, we feed ourjobs directly onto some of the highesttraffic websites in the powersportsindustry,” says Baylon. “But we arealways looking for ways we can enhancethe experience.”

To celebrate the 10th anniversary ofMotorcycleIndustryJobs.com, peoplewho posted resumes in the month ofJanuary were eligible to win a Trekker Fly Helmet and other prizes, drawn at random. t

American International

Motorcycle Expo Now Four Days

Marketplace Events Motorcycle Group,producer of the American InternationalMotorcycle Expo (AIMExpo), hasannounced the 2014 show will be a four-day event held on Oct.16-19, 2014.Last year’s inaugural event was five days.

In the short time since the launch ofAIMExpo, show management hasreceived a significant amount offeedback from the powersports industryhailing the event as much needed and anoverwhelming success. Based on inputreceived, and keeping with AIMExpo’smission of providing the most effectiveand efficient platform for B2B and B2Ccommerce, AIMExpo will be streamlinedby one day.

Orlando, Fla.’s Orange CountyConvention Center remains the hostvenue for the event. Exclusive trade andmedia days will be held on Thursday andFriday (October 16-17) with the showexpanding to include consumerattendees on Saturday and Sunday(October 18-19).

AIMExpo is powersports’ onlycombined trade, media and consumerevent in North America.

“Since the beginning, a core goal hasbeen to serve as a catalyst for change,”said Larry Little, general manager,Marketplace Events Motorcycle Group.“This means listening and responding to

the needs of the industry. Our post showsurveys of exhibitors, trade andconsumer attendees, coupled with theextensive conversations we have on adaily basis with our customers andpartners, clearly pointed us to thedecision to go to four days.”

The new four-day format will ensureAIMExpo remains a highly-productiveand well-organized event whileincreasing the efficiency and costeffectiveness for all participants.

The inaugural AIMExpo featured 392exhibitors including manufacturers anddistributors Yamaha, Erik Buell Racing,Suzuki, KYMCO and Tucker Rocky/Biker’sChoice, among others. AIMExpo 2014has already booked over 200 exhibitorsand is on track to surpass the launch yearin both size and scope.

PowerSports Business Institute @AIMExpo, the events’ highly regardedindustry education program, will alsoreturn offering attendees invaluablelearning opportunities not foundanywhere else. Additionally, Motorcycle& Powersports News, the event’s officialmedia sponsor, will again be producingAIMExpo show publications including theShow Directory, Show Dailies andSouvenir Consumer Program. t

AMA Announces 2014

Award Recipients

The American Motorcyclist Association(AMA) has announced the recipients ofits 2014 AMA Awards. The six national

Inside theIndustry


awards, conferred by the AMA Board ofDirectors, recognize outstandingcontributions in the world ofmotorcycling and acknowledge supportof the AMA mission to promote themotorcycle lifestyle and protect thefuture of motorcycling.

The most prestigious of the awards,the AMA Dud Perkins LifetimeAchievement Award, was given to Mikeand Margaret Wilson of Cedar Rapids,Iowa, for their lifelong commitment tofostering the growth and acceptance ofmotorcycling, and their dedication to theAMA and its Hall of Fame. Other 2014award recipients include:

• AMA Bessie Stringfield Award - Scot Harden, vice president, Global Marketing, Zero Motorcycles

• AMA Hazel Kolb Brighter ImageAward had two recipients - “WhyWe Ride” feature film by JamesWalker, Bryan H. Carroll and ChrisHampel, and “Road Warriors, TheBleeding Edge of MotorcycleRacing” feature film by MattGreenstone

• AMA Outstanding Road RiderAward - Donald L. Green, leadinstructor, Fort Knox, Kentucky ArmyTraffic Safety Training ProgramOffice, and Motorcycle SafetyFoundation rider coach with theKentucky Motorcycle RiderEducation Program

• AMA Outstanding Off-Road RiderAward - Jim Pilon and Paul Flanders,

AMA District 37 Dual Sportorganizers and promoters of the LA-Barstow-Vegas desert event

• Friend of the AMA Award - RoyGarrett, AMA life member, ABATE ofIndiana and Discover Indiana RidingTrails (DIRT). t

AMSOIL Announces Specialized

Oil Sweepstakes

AMSOIL has kicked off the SpecializedOil Sweepstakes program to land onelucky winner and a guest an all-expenses-paid getaway to Big Sky Montana in thewinter of 2014-2015. The grand prizeincludes round-trip airfare, four-day/three-night hotel lodging, sledrental, two-day guided snowmobile tourand $500 in spending cash. This once-in-a-lifetime AMSOIL-sponsored getawayopportunity will be a memorable lifeexperience, the company says.

Contest entry forms can be found atany of the following AMSOIL-sponsoredsnowmobile racing series events takingplace now through March 31, 2014:

• AMSOIL Championship Snocross(ISOC)

• Canadian Snocross RacingAssociation (CSRA)

• East Coast Snocross (ECS)• AMSOIL Eagle River Snowmobile

DerbyThe Specialized Oil Sweepstakes is

only eligible for participants in the UnitedStates, District of Columbia and Canada(excluding Quebec). Sweepstakes endMarch 31, 2014. t

Hein Gericke Reportedly Bought

by Chinese Investors

Following its insolvency filing in December,industry reports suggest that Hein GerickeDeutschland GmbH has been acquired bythe Barcelona headquartered group ofChinese investors that is headed by ArthurLiao, the owner of Chinese helmetmanufacturer LS2.

Some 54 of Hein Gericke’s 85 shops incontinental Europe are in Germany, withother shops in The Netherlands, Belgium,Poland and Austria. However, the deal doesnot include the British Hein Gerickecompany, with some 12 of the 16 UK storesreportedly being bought by British apparelretailer J&S Accessories.

Arthur Liao founded LS2 Helmets in1990 and created a head office inBarcelona in 2007. The takeover of theHein Gericke retail network would help fuelthe growth ambitions of LS2, and that thetakeover will become effective with theformal insolvency declaration. t

Inside the Industry



The demise ofpioneering

print publicationIronWorks wasjust one of themany ripples inthe V-Twinindustry pondannounced justbefore the V-Twin Expo in Cincinnati. Always an odd fit within its portfolio of tradepublications for the woodworkingindustry, Hatton-Brown has announced itwill stop producing the print version as ofthe March 2014 issue. Founded by thelate Dennis Stemp in 1989, Hatton-Brown bought the book in 1995 as itsfirst consumer magazine.

••••Undaunted, editor/publisher Marilyn

Stemp plans to bring IronWorks back,but as Iron Trader News (the nameDennis originally started with in 1989).“First up is the ITN Facebook page, thenthe website and blog,” she explains.“We’ll follow with a full-fledged digitalmagazine at a totally retro subscriptionprice, especially considering the superiorquality of its unique content. With yourinterest and support, subscriptions to theprint version of Iron Trader News won’tbe far behind.” Like them on Facebookor click on http://irontradernews.com tofollow the progress.

••••In more magazine mayhem,

Greg Jones joined the MPN staff. Greg joined MPN parent Babcox Mediain January 2014 and currently serves asmanaging editor of both Motorcycle &Powersports News and Engine Buildermagazine. He is also content specialist

for Speedville.com.Prior to joining Babcox,Greg worked for SmartBusiness magazinefrom 2010 to 2013 asan associate editor.Greg has a bachelor’sdegree in journalismfrom the University at

Albany, State University of New York.Contact Greg at [email protected] or(330) 670-1234 ext. 272.

••••Also news to the V-Twin crowd is the

fact that former Progressive Suspensionstalwart Pat Lovro becomes the directorof outside sales for Vance & Hines. “I amvery excited about this opportunity andwith the support received from all of youin the industry,” says Lovro, who manydealers will know from his in-depthsuspensiontraining coursestaught at thedealership level.Lovro nowreports to MarkFinnie whorecently rolledover fromPerformanceMachine to take over at Vance & Hineslast fall.

••••Unrelated to Lovro’s leaving, but still

pertaining to Progressive Suspension isthe fact the firm is looking to hire amechanical project engineer. The“progressive” company is looking for ahands-on mechanical engineer to lead thedevelopment of motorcycle accessoriesfrom the concept phase to volumeproduction launch. If you are interested inthis position, please send your salaryhistory, resume and cover letter detailingyour relative experience and interest to:[email protected]

••••More V-Twin related moves

announced in January included formerCCI/Custom Chrome Europe headhoncho, Holger Mohr moving fromMustang Seats to become president ofKüryakyn. Company founder, Tom Ruddtakes over as chairman and can focus onhis passion for R&D and creating newproducts while Mohr addresses day-to-day operations for the aftermarketaccessories company. “I am reallylooking forward to kicking Küryakyn intooverdrive,” says Mohr. Serious race fans

may remember Rudd from his dragracing days, but it is the true industryinsiders that know Tom actually foundedDrag Specialties. He launched Küryakynback in 1989 after selling DragSpecialties to Fred Fox at LeMan’s Corp.

••••Auction action! Mecum Auctions has

taken a financial and marketing stake inMidAmerica Auctions. Mecum’s activeinvolvement with MidAmerica began inJanuary with the 23rd Annual Las VegasMotorcycle Auction & Races. As MecumAuctions continues to grow, the companywill expand into the motorcycle auctionmarket via the MidAmerica auctionbrand. MidAmerica founder RonChristensen will bring his 25 years ofauction expertise to his new role aspresident of Mecum’s motorcycledivision. The first joint venture was sellingoff the “The Evolution of Harley-DavidsonMotorcycles”collection,headlined by a1911 7D Twin(pictured). “TheGeorge PardosCollection is oneof the finestgroups of Harley-Davidson motorcycles Ihave ever seen,” commentedChristensen. “I’ve seen a lot of bikescross my path over the last quartercentury, but nothing quite like this whenit comes to Harleys.”

••••Heads up: Arai Helmet, Inc. has

appointed Louisville, Ky.-based Doe-Anderson as its new agency-of-record.“We’re excited to begin working with Doe-Anderson and look forward to thefresh voice that they will bring to ourbrand,” said Brian Weston, Arai’s managingdirector. “Their expertise in branddevelopment within the powersports andpremium product industries uniquely alignswith the needs of Arai.”

For an extended “Shifting Gears”section visit the MPN website. t

SHIFTING GEARSPrinting All The News That Fits

By Robin Hartfiel

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Honestly, modern hipsters are just vintage hippies in sheep’sclothing. A bit more academic, well-trimmed and techno-

savvy. Cool. So, too, are the interesting and uniquely assembledhip-cult machines of today which rhyme with neo-retro, rat, café,chop-cult or el chollo. Gone are the extended front ends, 300-series tires and chrome glitz. These fads have been replaced by awhole new generation of younger and more earthy machinessubscribing to murdered-out flat black paint, asbestos-wrappedheaders, funky handlebar ergos and Easy Rider, Jack Nicholson-inspired football helmets with DOT certifications. Did I mentionthese trends are being driven by a market under 30 years old?Goodie for us … at last.

Of course, if you don’t cuff your jeans over your RedWings inthis crowd, you might not get past the self-appointed arbiters ofcool. Just kidding — this is actually the most relaxed generationsince free love and Mary Jane. It’s no different than the 1970s,just without the headbands, tie-dye shirts and moccasins.Replace “Easy Rider” with “Why We Ride” as the inspiration forthis next generation of motorcyclists (your customers).

It’s funny how the indicators don’t really change: clothes,music and motorcycles remain the benchmarks, but now with afashionable twist. Besides the fashions and the machinery, thevocabulary tends to change too. Last month we looked at theMotorcycle Industry Council/Experian definitions of customers.Now we examine the shift in vocabulary.

The trick is how do us aging hippies communicate with thehipsters of Generation Next? It is like they have a different wordfor everything (you hipsters should Google wild and crazy guy,Steve Martin for that reference). So do any of these terms remindyou of the past … or do they demonstrate just how out of touchyou are with the future?

Chillaxin: A combination of two olderfavorites — “chillin” and “relaxin” —chillaxin. Usage: “I’d like to be chillaxinafter my second moto in my sled …with a brew and a rack.” Two decadesago it was synonymous with “kickinback” before I“kick ass” in thenext race againstBarry Sheene,Roger DeCosteror James Hunt.

Rack: A rack is what you think it is, but sometimes super-coolhipsters choose “rig” or “rack spotter.” Usage: “A rack from2014 isn’t quite a pit tootsie from the 1970s, nor a TLU (Tight-Little-Unit) from the ‘90s.” Disgusting? Well, it was the ‘70s …and the ‘90s.

Totes: An abbreviation of the word “totally,” because thehipster’s time to say the extra syllable is too time consuming. Usage:“I think that biker with the 6-pack abs is gorge … totes.”

Tassel: Girl or girlfriend. Usage: “How does that last-place racerget a new tassel every night?”

Piece: Cell phone. Sounds like a .38 cal. revolver, right? No, it’sthe modern word for the hipster’s weapon of choice — the smartphone. Usage: “Sling over my piece — I gotta text my tassle.”

Mouse Potato: Instead of a couch potato, this person works his mouse-equipped computer all day as a means ofcommunication to the living world. Usage: “Stop being a mouse-potato and go outside to sell some bikes.”

Cross-titute: A young woman who hangs around the Supercrosspit areas trying to get picked up by riders. Usage: “Did you see all the cross-titutes hanging around theMonster tent at A2?”

Man-wichism: Having three males on a couch watching TVor playing video games together. Usage: “The TV coverage ofthe race was so good we had a case of man-wichism happeningin the living room.”

Panic Mechanic: A shrink, psychologist orpsychiatrist. Usage: “Billy is about tofreak out on the starting line. Call inhis panic mechanic.”

Café Cruisin: A repeatof “tavern-to-tavern”racing from the AceCafé days, except 60years later. The cafésjust serve a new kind ofgenetically modified

food than they used to.Usage: “Gotta go café

cruisin beforeApplebee’s closes at

10.”

By Eric Anderson

HIP—ster vs. HIP—pie

ConfessionsOF A CUSTOMER


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Monae Mulisha: Bling meets military.Excess bleeds over function. Confused orintrigued? The slang for either “soleadvisor” or “big bucks”… bonds withbattalion. You’re supposed to tune in to‘80s haircuts, big Caddies, incurablemale behavioral malfunctions and ajuxtaposition of the tendrils holding theX to the Y chromosome. Usage: “He’ssuffering from Monae Mulisha Syndrome— maybe related to his previous case oftestosterone poisoning.”

FOMO: The “Fear Of Missing Out”has made us all over-stressed, over-communicated and over-interrupted. It isdriving us to earlier deaths than thegeneration before us for the first time inhistory. Usage: “He’s gonna drive himselfoff the edge from FOMO.”

2-Wheeled Land Yacht: This isn’t anew meaning, but there are some recentadditions to the category. Usage: “Thosenew ADV bikes with suitcases on theirsides remind me of 2-wheeled landyachts on the horizon.”

BMW: “Burly Mountain Woman” hasbeen around for a while. But it’s timelessand totally gender biased. It couldchange to “DDD” for Duck Dynasty Do-Dos if it makes you feel better. Usage:“Wow! She bench-pressed that F800 likea twig. Now that’s a BMW!”

It doesn’t matter what generation youlook at. If they ride motorcycles, surf onboards or race cars, they all have theirown jargon which connects them to theclub. It’s no different now … except forthe fact that word travels faster. Much,much faster … so pay attention! Stopchecking out that cross-titute, pull outyour piece and Google that! t

The long-running Confessions of a Customer™ is one of columnist Eric Anderson’s commitments to the industry,which includes his retail sales training efforts and service to the MIC Board of Directors. He has built several well-knownaftermarket brands and is the founder ofVroom Network, an industry-specificconsulting company specializing inmarketing, training and branddevelopment.

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By Jim Woodruff

NPA Pre-Owned Monthly RecapDecember in ReviewR

eca

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Pre-owned monthly


With 2013 in the rearview mirror, we can see that it was ayear of mild contrasts in the pre-owned wholesale

market. Almost all product categories followed a normal seasonal wholesale price curve, yet several categories exhibited lower average wholesale pricing than 2012. ATV values were fairly consistent compared to 2012, while sportbikes had a softer summer and fall than the last few years. Bothdomestic and metric cruisers had softer performance than2012, with metric cruiser values softening in early summer afterthis year’s cold, wet spring, and domestic cruiser values softening in October with the launch of 2014 Rushmore bikes.

As 2014 drew closer, dealers began buying with new confidence, with December’s strong performance providing aglimpse into powersports dealers’ expectations for 2014.Wholesale values for seven out of the nine major product categories that make up the pre-owned wholesale market wereup in December over the average of the three months prior.This is similar to the upswing in December of 2012 as dealersoptimistically approached 2013. Yet, December 2013 outperformed December 2012 in all categories except thecruiser and sport categories. This suggests confidence thisspring season will be more temperate despite the harsh winterso far, as well as confidence that consumer optimism andstrengthening pre-owned retail financing programs will encourage retail sales.

We expect 2014 seasonality to follow normal curves, withwholesale values rising another 5-10 percent across variouscategories into April, then declining somewhat in the summermonths as retail demand wanes. We do not expect the samedegree of softness however, provided that this comingspring’s weather is more moderate and economic conditionshold steady. 2014 should be a good year for the powersportsindustry.

All data provided for this column is copyrighted by NationalPowersport Auctions (NPA). For more information, please visitwww.npauctions.com or call 888-292-5339. t

MPN has partnered with NPA to provide our readers witha monthly recap of pre-owned wholesale powersport sale results. National Powersport Auctions is the largest providerof pre-owned vehicles, selling approximately 5,000 eachmonth. We hope you enjoy this new segment.

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At the end of every year, I like to lookback and see what went well for our

dealers and what didn’t go so well. Thisyear, I noticed a definite trend in the F&IPVS (Per Vehicle Sold). Most dealers’numbers were, on average, flat or a littlebit up. When I separated the top 10percent from the average dealers, I saw adifferent trend. The top 10 percent wereup between 20 and 30 percent over lastyear. Why?

Metric Average Top 10 percent2013 $432 $8652012 $430 $612HD Average Top 10 percent2013 $1038 $12832012 $975 $988

A lot of dealers made more money in2013 than they did in 2012 due to thefact that there are fewer dealers in theirmarket than there were several yearsbefore, or because they are in an areawhere a particular industry is booming(such as oil or natural gas). The problemis that all of this will pass eventually. Themarket will change, new dealerships willopen and booming industries willslowdown. You need to get more out ofevery customer so that when the industrycatches up with demand, you can stillmake the money you need.

So, what is the top 10 percent doing toget more out of every customer?

Here are three things that stick out:

They are NOT satisfied with

being average

As in any sport, you will only play as wellas the people to whom you compareyourself. If you are always comparingyourself to the average, you might feelgood about where you are, but you willnever be one of the best. These dealersalways compare themselves to the best,and that is why they succeed.

They train their people

Good training is not cheap but thehidden price of not training will cost morein the long run. The top 10 percent ofdealers all take advantage of industrytraining. With many options out there fortraining (manufacturers, service providers,or dedicated training companies), there is

something to fit dealerships of any size. Thetop 10 percent all take advantage of what isout there.

A wise man once said: The only thingworse than training an employee andwatching them leave is not training themand watching them stay.

They follow through on what they

say they are going to change

Providing or participating in training isonly half of what it takes. It’s equallyimportant to make the commitment, and tofollow through on the implementation ofwhat is learned.

You might have heard the saying thatthe definition of insanity is doing the samething over and over again expectingdifferent results. Improvement requireschange, and the top 10 percent change.

If you are in the top 10 percent, thengood for you! You get it. You change withthe times, and you will be in businessthrough good times and bad. No matterwhat the market throws at you, you willadapt to the changing conditions and makethe best of the situation.

If you are not part of the top 10 percent,there is still time to change. If you choose,today can be the first day of the rest of your life.

Choose to make 2014 your best yearever in the industry! t

Steve Dodds II is a moderator, trainer andconsultant for Gart Sutton and Associateswith experience in every position in thesales and finance departments. Dealersrave about his ability to identify areas forimprovement and implement the changesthat produce superior results. If you havequestions about what he or one of ourother talented consultants can do for you,contact us at [email protected].

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By Steve Dodds II

Finance&Insurance

Separating the BestFrom the Rest

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ADP Lightspeed DealerManagement Solutions aredesigned to help manage dealeroperations by tracking and storingdata from every department anddelivering information that willassist dealerships in makingsuccessful business decisions.

Every night, more than 1,600Lightspeed powersports dealersautomatically transmit theirinformation to a collective databaseheld at the ADP Lightspeed officesin Salt Lake City, Utah. Summariesand aggregated reports areavailable to dealers for both currenttracking and historical research.This helps you know how yourdealership is performing comparedto other dealers across the country.

Parts and major unit inventoryinformation is gathered and used inthe highly successful LightspeedDealership Locator program. Thisprogram is designed for dealers topost obsolete inventory, allowingother dealers from across thecountry to locate hard-to-find partsand units.

ADP Lightspeed stands ready towork with all parties and move theindustry to new levels ofunderstanding, and ultimately tomore efficient and profitableoperations.

For questions regarding thisreport or to inquire about acustom report, please contactLightspeed Data Services at (800) 521-0309.

www.adplightspeed.com

Powersports Dealer New Units in Stock

January 20141,713 Lightspeed Dealers, Distribution of Units by Type and Model Year

Scooter

On-Road Motorcycle

Off-Road Motorcycle

Snowmobile

ATV

Utility Vehicle

Prior to 2013 Model Year 2013 Model Year 2014 Model Year

13%36%

51%

6%

21%

73%

17%34%

49%

21%48%

31%

10%

16%

74%

25%

55%

21%

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What began as a once-in-a-lifetimelearning experience for a handful

of lucky motocross fans has taken flightto become the fully fledged RickyCarmichael University. Riders of all agesand skill levels now have an opportunityto learn from the “GOAT” (Greatest OfAll Time) as the legendarymotocross/supercross racer RickyCarmichael has become known.Obviously graduates stand to gain themost from RCU, however dealers,sponsors and others in the industry cangain tangible benefits.

RC took time out of his incrediblyhectic schedule to explain more aboutRCU. In addition to being the “dean” ofRCU, he is still actively involved in “RickyCarmichael’s Road To Supercross” as theArenacross series has become known;preparing for the 2-day Ricky CarmichaelAmateur Supercross held at DaytonaInternational Speedway during BikeWeek; heading the RCH Soaring EagleSupercross team of Josh Hill and Broc

Tickle; working in the broadcast boothevery weekend for Fox Sports; makingcountless personal appearances… andthe list goes on. So why wouldsomebody with so much on his platewant to dish out riding tips to a bunch of amateurs?

“I do this because it’s something Ienjoy and it is also a way to developsomething cool within the sport. It is away to give something back to the sportthat has given me so much,” he explains.“I believe things like RCU are programsthis sport needs – our fans andcompetitors deserve options andopportunities. I genuinely want to seeour sport grow and earn the respect thatit and its riders deserve.”

It wasn’t something as simple asslapping his name on an existingprogram, he and manager JH Lealespent a considerable amount of timecreating the concept, designing thecurriculum and making sure that RCUwas legit long before it was ever

What Can Dealers Learn FromThe Greatest Of All Time

RCU ForYou

By Robin HartfielPhotos by Josh Rud, Shift One Photography

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announced back in 2010. “When we firstdiscussed the idea, we looked at othersports and saw how they helpeddevelop their future talent. We set outto do the same thing in moto.” Theyalso looked at the backendopportunities for the industry. “Not onlydo we work hard to make it greatexperience for the students, we try tomake it worth everyone’s while in manydifferent ways. It brings positiveattention to our sponsors and allows theparticipants to get closer to thosebrands as well.”

Of course the initial focus is on thestudents. “We believe a rider can get somuch out of RCU. First being a greatexperience and being exposed to thedepth of knowledge we have from theinstruction staff to help these ridersreach their true potential.” The ridersare divided by age and ability level soeveryone has a chance to learn andimprove from their personal level. Fromup-and-comers on 85s to Vet riders,RCU caters to each group.

“By keeping the class sizes small itallows us to spend more one-on-onetime with each rider. We believe that wehave put together a trend-settingprogram with RCU,” claims the GOAT.“We can give some insight to not only



the riders but their parents and guardians, mechanics andothers — it is truly a great experience all around. For theparents and mechanics we also have classroom time for themas well with seminars from companies such as Cometic, Dunlop,Hookit and others.” Dealership personnel take note: “We alsohave a factory mechanic on hand to help answer any set upquestions they may have. We have learned a lot and tried toimplement ideas from those big camps athletes from otherpopular sports (stick and ball) in America attend.”

So how does the average dealer get involved? “Whether it’s a dealer or potential sponsor, there are many different optionswith how they can be involved — from a scholarship side forindividual riders to the advertising/partnership programs thatthe RCU provides,” says RC. “It is really up to them what theywant do. We try to accommodate dealers and sponsors alike.We give them the option as to what way they feel is best topromote their brand. “

Carmichael cites Fox Racing and Rocky Mountain ATV astwo prime examples. “Fox has been involved from thebeginning and they work with their reps and dealers to provide‘scholarships’ to deserving local riders by building it into someof their sales programs. It’s a great way to reward their dealersand reps.” Rocky Mountain ATV/MC came on last year and

did an online essay contest on why they should pick you toattend. We love new and fun ideas like that and are alwaysopen to hearing ideas on how people can get involved with the program.”

Time constraints being what they are for Carmichael, RCU is thebest way to spend time with the champ these days. “I don’t doprivate lessons any more,” he says regretfully. “With all theprograms we have going on and the RCH Soaring Eagle race teamresponsibilities, it keeps my time totally locked up. I still do theSuzuki Camp Carmichael, which is exclusive to Suzuki riders. Suzukirewards 24 riders with a private RCU at my track in November andthe racers earn points throughout the year via Suzuki’s contingencyprogram. It’s a really cool program that they do.”

Look for an updated schedule of RCU classes including theaddition of Red Bud and for the first time ever, expanding intoEurope with 2-day stops in Sweden and Belgium. RCU issupported by Ricky’s personal sponsors including Monster Energy,Fox Racing, Oakley, Cometic Gaskets and Suzuki as well as RCU-specific supporters such as Mechanix Wear, Hookit and Trek. t

For more details, click on www.rickycarmichael.com orwww.rickycarmichaeluniversity.com.



The Ricky CarmichaelUniversity FacultyWho is on the RCU faculty? “The staff ofthe RCU programs are myself, Jeff Emigand Jeff Stanton,” notes the headinstructor, Ricky Carmichael. “These twoguys have been a permanent fixture on theinstructors side since day one.” Care toguess how many national, world andMotocross des Nations championships thisteam has between them? We can't countthat high!

There have also been some supportinginstructors. “It really just depends on theirschedules and what country or region weare in, but normally we try to have the best“guest” instructors we can get. In the pastwe have had Johnny O'Mara, Jeff Ward,Damon Bradshaw, Ivan Tedesco and GrantLangston among others.”

This year RCU will be working withJamie Dobb in Europe and some othersurprise instructors to be announced later,including 10x World GP champ StefanEverts! The knowledgeable and

experienced panel of instructors are allmore than qualified to teach studentseverything from proper body positioningto utilizing organized drills focusing on flatturns, riding rhythm sections andimproving braking techniques.

Long-time fans may rememberCarmichael’s own training started with hismother. She definitely knows what she isdoing since she helped create the legendof the GOAT. “My mom helped out withthe first couple we did, but she isn't reallyinvolved in the RCUs anymore. She is busyhelping with the riders we have at mytrack,” he says. “My dad and her runthings at my track in Florida and keepthings going up there for the few ridersthat use it.”

How about that JH Leale guy? Wheredoes he fit into the RCU picture? “JH is ahuge part of the RCU,” claims Carmichael.“Honestly it’s his program and he spends amajority of the time on it and the growth ofit and always trying to make it better. I doshare my ideas and things that I think weshould do, but he is the boss.” t



Email — love it or hate it — isn’t goinganywhere. The total number of

worldwide email accounts is expected toincrease from 3.9 billion in 2013 to 4.9billion by the end of 2017, according toThe Radicati Group, a Palo Alto, Calif.-based technology market research firm.Even teenage digital natives, who left emailbehind long ago and equate the platformwith carrier pigeons, still use it forhomework and file sharing.

But email, by its very nature, is fraughtwith communication challenges. Messagesare one-dimensional, which meanscustomers often aren’t able to interprettheir “tone.” When you’re speaking withsomeone, the other person may (eitherknowingly or not) use voice inflection tocommunicate an emphatic statement, aquestion or sarcasm. Those cues areeliminated within the confines of an email.

Additionally, because people’s emailaccounts are inundated with spam on adaily basis, the intended recipients of yourmessage may not receive it because it’scaught in a spam filter. Even if the messagedoes get through, it may not be read,because nothing about it captures therecipient’s attention. This is why you want totell customers to make sure you’re on their“safe sender” list. It doesn’t hurt to comeup with provocative subject lines, either(Well, not too provocative).

At the same time, emails cansignificantly enhance communication withcustomers by allowing you to inform,engage and connect with them. You alsocan customize emails by targeting specificbuyer groups.

Every dealership should already haveemail policies in place regardingemployees who send messages to theirown customers or use store-ownedcomputers for personal email. But everydealership also should develop email

objectives. What do you want to achievewith each email you send? Here areseven types of email a motorcycledealership should have in its arsenal:

Sales email: To promote pricesand get buyers through yourdoors.

Example: The annual “Shift Into Spring”sale.

Marketing email: To letcustomers know about specialhappenings at your dealership.

Example: Upcoming charity rides, chilicook-offs and unusual promotions.

Research email: To share new orexisting information that riderscan use.

Example: News about researchers in favorof universal helmet laws.

Informative email: To shareimportant, non-sales information.

Example: BMW recalls 50,000 motorcyclesfor potential fuel pump leak.

Educational email: To teachyour customers useful information.

Example: How to prep your motorcycle forspring riding conditions.

Email update: To providedealership or industry news.

Example: Stop by and check out the new2015 models.

Email inquiry: To serve as areminder or a call to action.

Example: When was the last time youchanged your motorcycle’s engine oil?

Understanding your objectives will helpyou craft the five key components of acompelling, persuasive email: attention-seeking subject line, effective message,call-to-action, appropriate sign-off anduseful signature.

Subject Line Is Your Handshake

Treat the subject line of your email thesame way you would an initial handshake; it

may be your only chance to make a firstimpression. And just as a handshake canlinger a tad too long, keep the subject linebrief, indicating why your message is worththe reader’s time.

There are multiple ways to do this. Inhis book To Sell Is Human: The SurprisingTruth About Moving Others, New YorkTimes-bestselling author, Daniel Pink,reports on research from 2011 thatdetermined people open emails basedon three factors: utility (opened becausethe recipient has something to gain orlose), curiosity (opened because therecipient is, well, curious) and specificity(opened because the recipient knowsexactly what he or she is getting once themessage is opened).

To that end, craft your subject headersto fall into one of the following fivecategories:

Descriptive: 10% Off Repair ServicesThrough the End of May

Fast Fact: Tire Tread Patterns forMotorcycles and Cars Differ

Provocative: Our Shoei Helmets CanWithstand Bullets

Rhetorical: Are You Tired of Looking ata Beat-Up Wind Deflector?

Nearly Naughty: Let Us Show YouHow Much We Love You

Also keep in mind to whom you’resending the email. If it’s an email blast toyour entire list of customers, many of whommight never have met you, use astraightforward subject line that gets rightto the point:

ABC Motorcycles CustomerAppreciation Event This Thursday

If you’re sending out details about acustomer appreciation event to your ownlist of customers who’ve worked with youone-on-one in the past, you can afford tobe a little more personable:

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By Mark Rodgers

What Makes Them Click?How to Write a Persuasive Email That Gets Results

PEAKDealership

PERFORMANCE

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I’m Inviting All of My Favorite Customers. This way, you’re communicating the

bottom line of your message before yourrecipients even open the message.

Effective Message

This requires you to be engaging, clear,concise and persuasive. We all know howeasy it is to just hit “delete” withoutreading more than the first line or two of anemail. Why is that? Because we intuitivelybelieve that if nothing interests us in thoselines, we don’t need to waste our timereading the rest of the message.

Let’s break down an effective sampleemail that could be sent to new customers:

Hi, Steve:Hope all is well and that you are

enjoying the new motorcycle you boughtfrom ABC Motorcycles. We certainly hopeso! Have you been able to put many mileson it yet?

“Hope all is well” is a polite openingand invites the recipient to comment(“We’ve been swamped!” “We just gotback from vacation!”). Then, by mentioninghis new ride, you’ve begun to steer theconversation in the right direction byreinforcing your commitment to a positive

customer experience. Asking about milesfurther invites an exchange (which is whatyou want). Note the use of “yet” at the endof that statement. I like it, because it makesthe question more casual, rather thanthreatening and interrogational.

The email continues: As you know, it’s aspecial bike, and you’re now a member ofour dealership family. So we wanted you toknow the family is having a get-together.ABC Motorcycles is hosting a customer-appreciation event this Thursday beginningat 5 pm inside the dealership and out inthe parking lot.

This reaffirms the buyer’s purchasedecision and emphasizes that yourdealership treats customers like family. Themessage than segues into the customer-appreciation activities. The use of “your”makes everything a little more personal. Ifyour mail program allows it, highlight thesentence that contains the date and time ofthe event.

Back to the email: We’ll have specialdeals on accessories, apparel and servicepackages, plus food, drinks and sweetsfor the entire family. We want to hearabout your experiences with your newmotorcycle and introduce you to fellow

riders in the area. This portion of your message is

intended to give your new customer anidea of what to expect. It indicates you’ll bea welcoming host and can dramaticallyincrease event participation.

The emails ends: Please consider joiningus — you might even win one of the coolprizes we’re giving away. Will I see youthere? Let me know.

This is your “call to action” line. Manyblog and social media posts use thistechnique, and so should your emails. Whatdo you want your recipient to do as a resultof reading your message? Email you andconfirm that he will attend! That’s why youask the question directly. When people go“on the record” and make a commitment(especially in writing), they are more likelyto keep that commitment. Also note theuse of a cliffhanger: “…you might even winone of the cool prizes we’re giving away.”What kind of prizes? How cool are they?Stop by, and you’ll find out.

Because you come across as friendly,enthusiastic and down-to-earth, customerswill have a hard time saying “no” to yourcall to action.



Sign Off

Many people don’t spend much timethinking about their email sign-off, andthat’s a mistake. This is one of the lastimpressions you’ll leave with yourmessage, and you want it to be aseffective as possible. “Talk soon” isfriendly and familiar, and suggests therelationship between your customer andyour dealership is just beginning.

Other commonly used sign-offs: “Thankyou,” “Sincerely,” “Warmest regards,”“Best,” Don’t be afraid to get a little morespecific: “Ride safe,” “See you on theroad,” “See you at the dealership.”

Signature

Just because you’ve signed off doesn’tmean your efforts to persuade customers toattend your event are done. Even youremail signature can be persuasive. Not onlydoes it reaffirm who you are and your roleat the dealership, it reinforces yourdealership’s brand and gives customers theability to quickly and easily contact you.

John W. Lyon, co-owner of WilkinsHarley-Davidson in Barre, Vt., includes thisline: “Why Buy From Us? CLICK HERE.”Clicking there takes email recipients to a

web page that lists five reasons to buy from“New England’s oldest dealer.” (Reasonsinclude being family-owned, winner ofseveral awards and a firm belief in nosurprise fees.)

So put your contact info in the signature:first and last name; store phone number,URL, email address, mailing address andyour cell phone number. If your dealership

has a cool slogan or tagline, has wonawards or been voted “Best” something,add those details, too. That said, be carefulwith images (the smaller the better) andsounds (we all know what a motorcyclesounds like).

Many smartphones or email programswill convert your phone number and emailaddress to hypertext, which allowsrecipients to click and call you quickly andhassle-free. Humans follow the path of leastresistance: If you make it as easy aspossible for people to contact you, thechances they will, go up considerably.

Following these steps to an effective,persuasive email will significantly improveemail open and response rates. t

An award-winning author, top-ratedtrainer and founder of Peak DealershipPerformance, Mark Rodgers holds amaster’s degree in adult education andthe National Speakers AssociationCertified Speaking Professionaldesignation — only 500 people in theworld have this coveted recognition. For more information, contact Mark at:[email protected] improve your performance.



Yamaha continues to explore newavenues to promote personal

watercraft ownership. Last year, the brandintroduced the industry’s first certifiedpre-owned (CPO) program, whichallowed consumers the opportunity tobuy a pre-owned PWC with the peace-of-mind that comes with a full factorywarranty. In late December 2013, thecompany was at it again, unveiling twomore industry firsts, a guaranteedbuyback program and the opportunity tolease, rather than buy a new WaveRunner.

“We know the numbers are throughthe roof as far as people that go boatingand use a personal watercraft,” notesBryan Seti, general manager, YamahaWaterCraft Group. “Our goal is to driveas many people as possible into thedealership to buy new.”

The guaranteed buyback program isaimed at buyers of new-modelWaveRunners that finance on a 60-monthterm. The program gives these buyers theopportunity to return the craft after 36months and “walk away,” or instead tradeup to a new model. Yamaha will offerbuyers a 30-day window at the end of the36 months in which to make the decision.The value of the craft will be based onused PWC pricing from the NationalAutomotive Dealers Association (NADA).Yamaha will pay remaining loan balancesup to $2,500. Dealers pay no fee toparticipate in the program, which isfinanced through either GE or Capital One.

According to Seti, the program isaimed at first-time customers unsureabout getting into the sport, as well asthe high-end consumer who wants the“latest and greatest” every three years.As of Jan. 15, 2014, 175 dealers havesigned up to participate in the program.

Though these programs have long

been staples in the automotive industry,Yamaha is the first to bring the leaseconcept to the personal watercraftmarket. The company is rolling out theWaveRunner lease program in six statesto start — Arizona, California, Florida,Georgia, Nevada and Texas — and plansto announce additional states soon.

“We don’t think there’s a ‘one-size-fit-all’ approach to the purchase process forevery consumer,” explains Seti. “So we

want our dealers to have a toolbox attheir disposal to find the right option forevery customer who walks in theirdoor. Some want new, others want usedor maybe short-term ownership.

“We are aiming to remove thebarriers of entry into the marketplacewith our products. Leasing is a greatoption for many potential customerssince it removes the commitment factorof ownership. We also wanted to offer an option for the customer who wantsthe latest and greatest product everythree years.”

Both programs, as well as Yamaha’sexisting Rental Operator program, willoffer dealers multiple opportunities toacquire good used units at a verycompetitive price. In turn, this will givedealers the opportunity to place thoseunits on the CPO program and earnadditional, incremental revenue.

“Our goal is to have a program forevery customer who walks into one ofour dealerships,” says Seti. “For new

PWC owners, leasing is one of manygreat options for them. Existingcustomers can absolutely use it as a wayto always have a newer model.

“This gets at the essence of ourstrategy in creating these salesprograms. By expanding the breadth ofwhat our dealers can offer, we believe wewill not only attract new sales, but alsoensure that our customers have a greatownership experience with ourproducts...

“...and build meaningful, long-termrelationships with our dealers.” t

Yamaha Unveils Industry-First PWC Buyback, Lease Programs

PWCUPDATE

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The power of YouTube as a primarysocial channel should not be

underestimated. Videos serve to boostyour website’s organic search ranking, buildyour dealership brand and sell more bikes— which is enough reason to dive in.

Getting Started

The best aspect of YouTube is you don’tneed to invest thousands of dollars onsophisticated video equipment andprofessional editors to jumpstart yourefforts. Got a smartphone? You’re ready toshoot. Webcam on your computer, or evenbetter, a GoPro camera? Now, you’ve gotno excuse!

Here’s is a step-by-step guide to settingup a YouTube account:

Sign-in to YouTube with your Gmailaccount from Google — if you don’t haveone, YouTube will walk you through theprocess (remember Google owns YouTubethat’s why publishing content here helpsyour organic search rankings).

Go To All My Channels.

Here, you’ve got the option to create aYouTube channel for a Google+ page thatyou manage. Select this option, as you’llwant to associate your YouTube accountwith your dealership’s Google+ page. If youdon’t have a Google+ page established, anew one will be created when you click,“Create a new channel.”

Fill out the details to create your newchannel, and you’re ready to roll film …well, almost.

Planning Your Content Strategy

While going “viral” may sound appealing,the chances that your dealership’s newvideo will compete with adorable kittensand viral sensations like the Harlem Shakeare slim-to-none. Instead, your goal shouldbe to create videos that connect with yourniche customer base. As a rule of thumb, ifyou can blog about it, you can create a

video about it. Your video content couldinclude new unit walk-arounds, servicedepartment how-tos, local racer interviewsor an over-the-handlebars perspective ofyour newest unit in action.

Here are just a few examples to get yourcreative juices flowing:

Woods Cycle Country DealershipTour: http://youtu.be/PHSSpu819GgIn this video, Woods Cycle Country

based out of New Braunfels, Texas, takesadvantage of video to give its prospectivecustomers an aerial tour of its dealership.

Road, Track and Trail Virtual Test RideSeries: http://youtu.be/NQeGYxc-PDoJust one of a series, Road, Track and

Trail’s Virtual Test Ride is an opinion-basedvideo that compares two similarmotorcycles head-to-head.

Harlem Shake Motorcycle Dealership Original Calgary:

http://youtu.be/NPj7UIXrjLgBlackfoot Motorsports in Calgary,

Alberta, took advantage of one of 2013’smost viral videos by doing its own spoof onthe Harlem Shake.

Optimizing Your Videos for SEO

Just like on Google, keywords drive thediscovery of your YouTube videos. You canuse YouTube’s Keyword Tool(https://www.youtube.com/keyword_tool)to generate a list of keywords to work intoyour videos. Here are the key places to useyour keywords in each video:

Title: Just like your blog posts, makesure the title of your video includes yourkeywords.

Description: At the very least, youshould write a one-sentence description,but you don’t have to stop there. You canwrite a blog-post length description,working in your keyword phrase(s)multiple times. This section is an idealplace to plug in a secondary call toaction which clicks through to a landingpage on your website (insider tip: there is

no character limit on this field, so includeall the detail you would like).

Tags: Make sure you use your keywordsand related terms in the tags section.

Script: YouTube takes the audio fromyour video and creates an automatictranscript, so working your keywords intoyour script will help your video’s SEO.

Annotations: The ultimate goal of all ofyour videos should be to drive traffic toyour website. Utilize annotations to placewords on the screen with a call to action,such as, “For more information on all of our2014 new unit inventory, visit us atxyzmotorcycles.com.”

Be Consistent

One video doesn’t cut it. Forget aboutcoming up with the world’s most creativeviral video. Instead, focus on creating asteady, consistent stream of videos thataddress your target customer’s biggestneeds. Sit down with your entire team andcreate an executable schedule of videocontent to ensure your YouTube channelstays current.

It’s also important to remember thatYouTube is just one channel in your overallsocial media marketing strategy. Whenyou’re coming up with video ideas, be sureto think about how your video fits into yourdealership’s overall social media and digitalmarketing strategy.

If you remember anything from thisarticle, remember this: the key to digitalmarketing success is to publish relevantcontent on a regular basis to establishauthority. t

Heather Blessington is a nationally-renowned speaker on social media strategyand a digital marketing veteran with morethan 20 years experience. As MPNcolumnist for Web Savvy and CMO at ARINetwork Services, Blessington is dedicatedto educating powersports dealers digitalmarketing best practices.

By Heather Blessington

Do You YouTube?

SAVV

YW

eb

32 websavvy_Layout 1 2/12/14 10:43 AM Page 32

33 mta 2/12/14 3:40 PM Page 33

Magnum TiresMagnum DistributingMagnum Distributing offers a full line of ATV/UTV tires that fit anarray of needs in a variety of prices, guaranteed to match yourriders’ budget and vehicle. With a full line of options, Magnumoffers tires with different tracking solutions for the track, trail oreven the mud pits. With all of the different tread and knob patterns,the Magnum line will have tires for multiple styles of vehicles aswell as tires to service a plethora of riding conditions. Sizes areoffered from mini quad tires to 27 inches. - - - - - - - - - - - -For More Info: www.magnumdistributing.com

K592 Bearclaw EvoKenda TiresPlacing a priority on reducing weightwithout sacrificing durability, thenewest Bearclaw has beenredesigned in different aspects ofperformance. Featuring an all-newtread pattern designed to performexceptionally across all terrains, theK592 Bearclaw Evo has large centerknobs for improved straight line andbraking traction, uniquely shapedtransition knobs for improvedcornering traction and handling andrecessed-dimpled knobs forimproved wet traction. The six-plyrated casing allows for punctureresistance while keeping weight to aminimum. The K592 Bearclaw Evo isavailable in all popular four-by-fourATV/UTV sizes with 28-, 29- and 30-inch sizes coming soon.- - - - - - - - - - - -For More Info:www.kendatire.com


Whether it’s woody trails or rocky tundra, your riders need tires that will stand up to thetoughest terrain. This all-star lineup of ATV and UTV tires is sure to withstand even theharshest riding conditions.

ATV/UTVSedona Tire &Wheel Mud RebelRT TireSedona Tire & WheelThe six-ply, heavy-duty radialconstruction allowsthe Mud Rebel RTTire to offer stabilityand control. Thehigh-grade rubbercompound brings ahigh quality oftraction and excellenttread life wear. With a1-1/8 inch deep,aggressive, computerdesigned tread pattern, thetire performs on normal trail rides and in extremeconditions, providing comfort from the tire’s tractioncapabilities. The sidewall structure is designed fortoday’s larger CC side by side and ATVs. The retail priceranges from $119.95-$169.95.- - - - - - - - - - - -For More Info:www.sedonatires.com

Tire R34-35 atv-utv tires_Layout 1 2/12/14 12:51 PM Page 34

STI OutbackSTI Tire & WheelThe STI Outback is an“all conditions” tirethat’s versatility wasachieved by creating amodel that providescomfort and controlwhile still delivering gripand cleanout capabilities.With a six-ply bias carcassand robust rim guard, theOutback provides a highlevel of reliability whileremaining surprisingly light. Most of theseaccomplishments above are due to the tire’s unique treadpattern. The tread pattern’s “V” design provides an OEM-like ride on hard surfaces, while the deep, dimpled lugsaggressively dig into loose, soft terrain; the wraparoundshoulder lugs supply controlled side bite; and the unique,stepped lug profile sheds mud. The Outback comes in twomodels: the AT, which features 3/4-inch deep lugs, andthe XT model, which uses 1 1/8-inch deep lugs. Initialsizing is ideal for a wide range of current ATV and UTVswith more sizes to come. Currently, the AT is available in 25x8-12 and 25x10-12. The XT is available in 26x9-12 and 26x11-12.- - - - - - - - - - - -For More Info: www.stitireandwheel.com


Severe Duty AlloyWheel SeriesITPThe new Severe Duty AlloyWheel Series includes thefirst lightweight aluminumalloy dual-bead lock wheel.The 14-inch wheelincorporates bead lock designon both the inner and outerwheel lips, providing “total tiresecurity.” The tires are backed by anindustry first two-year limited warranty againstbending and breaking. The 12-inch Severe Duty Alloy features a secure bead lock on the outer lip and ITP’s “Rock Armor”reinforced inner wheel lip. The advanced manufacturingprocess for the series yields an incredibly lightweight yet ultrastrong wheel. The SD series wheels will soon be available in14x7 Dual-Bead Lock and 12x7 Single-Bead Lock in boltpatterns to fit all of today’s popular ATVs and SxS’s, where de-beading is vital.- - - - - - - - - - - -For More Info: www.itptires.com

AMS Radial Pro A/T TiresParts UnlimitedThe built-in rim guard makes theAMS Radial Pro A/T tire ideal foruse on the roughest terrain, whilestill maintaining DOT approval toremain street legal. The radialcasing gives the tires a smooth,consistent ride. The tires have an eight-ply rating proving that they arehighly puncture resistant. The AMS

Radial Pro A/T tires are available in 25- and 26-inch sizes for both front and

rear applications. The 12-inch and 14-inch rim size makesthese tires a high-quality fit for all UTVs. The manufacturer’ssuggested retail price is $117.95.- - - - - - - - - - - -For More Info: www.parts-unlimited.comPower Grip V2

Duro TireDesigned with an off-road and trail ridermindset, the Power GripV2 is a lighter tire that ismore responsive withincreased punctureprotection. With a toughsix-ply rating, RockDeflectors in spacesbetween tread lugs, arim guard and anextended radial belt tocover and protect the

shoulder area from punctures, this stands as the most durabletire Duro has manufactured. The tire has a slightly roundedprofile for easier steering and reduced weight for bettertransfer of horsepower as compared to the original PowerGrip. The first size combination is 27x9R14 and 27x11R14 withmore sizes coming in 2014. The manufacturer’s suggestedretail price for the 27x9R14 is $150, and the manufacturer’ssuggested retail price for the 27x11R14 is $180.- - - - - - - - - - - -For More Info: www.durotire.com

Roundup34-35 atv-utv tires_Layout 1 2/12/14 12:51 PM Page 35

QUADBOSS UTV 4-SEAT COVERQUADBOSS

These covers provide reliable all-weather protection for yourutility vehicle. Constructed of quick-drying, heavy-duty, coatedpolyester it provides maximum water repellency and UV-resistance. Vents on both sides help prevent them from blowingoff in high winds while an elastic cord sewn into the bottomhem ensures a snug fit. Convenient nylon storage bag isincluded and driver side zipper access. Designed for the PolarisRZR-4, the Quadboss’ dimensions fit UTVs up to: 131” x 75” x59”. The retail price is $89.99.- - - - - - - - - - - -For More Info: www.quadboss.com

All Balls UTV Steering Rack Tie Rod AssembliesAll Balls

Rather than spend up to $700 for a complete steering rack assembly, replace bentand worn tie rod assemblies with All Balls heavy-duty tie rod assemblies at a fraction of

the cost. The inner rod assemblies have oversize shaft diameters for improved strength. Each kitincludes heavy-duty inner and outer rod ends with replacement boot, clamps and any required lock

washers. Outer tie rod ends and boot kits also available individually. Priced from $69.90 - $90.28 per sidedepending on application.- - - - - - - - - - - -For More Info: www.goallballs.com

OMF Performance 15” Billet Center WheelsOMF Performance Products, Inc.OMF Performance’s new 15” Billet Center wheels aredesigned specifically for UTVs. An American-made spunaluminum rim shell insures a solid foundation for the wheel.OMF then goes to work creating its own bolt in billet center.Aside from the obvious strength benefits of a billet center, italso allows you to change the offset, bolt pattern, style orcolor of the center without purchasing a whole new wheel.OMF also adds a heavy-duty reinforcing ring on the back sideof the wheel in addition to a beadlock on the front side of thewheel. Wheel weight varies with options, but a race ready15x6 wheel weighs in at 16 lbs. complete with the beadlockand inner reinforcing ring. Almost any combination of colors,styles and modifications is available. Smaller 12” and 14” sizesare also available.- - - - - - - - - - - -For More Info: www.omfperformance.com


Slasher Dual Exhaust and Fuel ProgrammerMTA Distributing

The Slasher Dual Exhaust and Fuel Programmer for the newPolaris RZR XP1000 is 6 lbs. lighter than OEM and produces 6HP more than stock. The Slasher Dual Exhaust and FuelProgrammer is made in the U.S., constructed out of stainlesssteel, has an adjustable mount for easy installation and aBristol Core high-end pillow packing for long life. Slasher’sexhaust and fuel programmer are also easy to repack, has turndown end cap, removable Spark Arrestor included andoptional Quiet Insert available (96db). Dual Exhaust SystemMSRP $879.99 and Fuel Programmer MSRP $318.99.- - - - - - - - - - - -For More Info: www.mtadistributing.com

ATV/UTVAccessories36 utv products_Layout 1 2/12/14 12:52 PM Page 36

37 kymco 2/12/14 10:47 AM Page 37


Off Road Gear EssentialsGOGAD/GOGJRFulmer HelmetsFeaturing both anti-fog and

anti-scratch technology, the

GOGAD and GOGJR adult

and youth motocross

goggles allow older

and younger riders to

venture down

trails with the

added bonus of

actually seeing

where they are

going. The

goggles have UV-

protective lenses,

a non-slip silicon-backed adjustable strap

and a precision-tooled frame for enhanced

peripheral vision. These goggles also contain

Fulmer’s optically correct lens with an

additional spare lens in either smoke or clear.

The goggles come in red, yellow, pink, green,

blue and black with a microfiber goggle bag

included in the purchase. The manufacturer’s

suggested retail price is $19.95.- - - - - - - - - - - -For More Info: www.fulmerhelmets.com

FLY Racing Evolution CleanRacewearFLY RacingThe Evolution Clean Racewear

demonstrates a unique,

revolutionary design. This design

was made possible from exceeding

the boundaries of typical racewear

technology, fit and finish to

produce something entirely

different. The Evolution Clean

Racewear features exclusive

technology such as a 2D Buckle

System, a Zipper Lock System and

the introduction of Magnetic

technology. The pant, jersey and

glove combination retails for

$232.85.- - - - - - - - - - - -For More Info:

www.flyracing.com

38-40 offroad gear 2/12/14 10:48 AM Page 38

39 kymco 2/12/14 10:49 AM Page 39


Off Road Gear Essentials

Officially Licensed Hoodies

Factory EffexFactory Effex offers a wide range of Honda,

Yamaha and Suzuki screened and embroidered

fleece pullovers, zip-ups and hoodies. They retail

between $54.95 and $79.95.- - - - - - - - - - - -For More Info:

www.factoryeffex.com

AXO America

A2 BootsAxo Sport

The newest addition to the AXO footwear family, the A2 boot

encompasses technology and comfort in motocross boots while

also offering a great fit. The new A2 features a reinforced nylon

anti-torsion ankle brace with a hinge system, AXO engineered

alminum buckles for an enhanced lock/unlock operation and anti-

abrasion upper materials. The A2 also has a breathable,

anti-bacterial and anti-sweat 3D-shaped mesh lining within the

boot, AXO’s traditional easy-to-replace sole and is designed and

produced with plastic molded materials. The A2 boot comes in

black or white in sizes 5-13. Suggested retail price is $475.

- - - - - - - - - - - -For More Info:

www.axo.com

38-40 offroad gear 2/12/14 10:48 AM Page 40

41 walker 2/12/14 10:49 AM Page 41

“Variety is the spice of life,” as theysay. It is also a key element of

not only surviving but flourishing intough markets. Vetesnik Power Sports inRichland Center, Wis., and Vetesnik MadCity Power Sports in Madison, Wis. are

dynamic proof of that.Starting with a 1,000-square-foot shop

offering Buick and Pontiac automobilesand Honda motorcycles in 1974, thefamily-owned enterprise has adapted tochanging market and economicconditions.

“That original shop we purchasedfrom Bristol’s was one of the first Hondastores in the state. In those days, we soldabout 100 new units a year,” co-ownerGeorge Vetesnik, Jr. said.

By 1980, the business expanded toabout 9,000 square feet in facilitiesacross the street from the originallocation. In the 1980s, John Deere lawnand garden equipment was added to the dealership, the powersports productlines were expanded, and eventually

the automobile sales operation wasphased out.

In the 1990s, the product linecontinued to broaden with the additionof Polaris, Yamaha and BombardierRecreational Products (BRP). By 1999, the

enterprise made a huge commitmentwith construction of an all-new sales,service and warehouse complex totalingabout 54,000 square feet a couple ofmiles east of Richland Center on U.S.Highway 14. The facility houses amassive selection of motorcycles,snowmobiles, ATVs, UTVs, boats, parts,accessories, supplies, gear and apparel.

Growth continued in the 2000s with theacquisition of nearby Jones Powersports in2007, which included Suzuki, Kawasaki andTracker boats.

In 2005, the business expanded toMadison, Wis., 65 miles east, with theacquisition of the assets of powersportsdealer, Young America, to access the larger,urban market around the state capitol city.The acquisition brought with it the territory

for Honda cycles, ATVs, UTVs and powerequipment, Suzuki, BRP with Ski-doo,Spyder and later Commander. The facilityand location, however, were not ideal andplanning began for a new facility in thesame general area.

“There were a lot of regulatory issueswith land in Madison, so we acquired aparcel that is actually about a quarter mileoutside the city limits. The location for thefacilities on that land was affected by thefact that the building site was close to awetland. Even the location of the sign wewanted to put up there had to meet a lot ofrequirements like setback distances. Wehad to get approvals from about 15different agencies to get it done. Othershad looked at the land and the things thatwould have to be done, and gave up. Wekept at it until we got it done, and when itwas done we had a file of permits andpapers about this thick,” Vetesnik explainedholding his hands about six inches apart.

Persistence paid off; construction on thenew facility, which is actually located in

Vetesniks Power SportsSteady Growth of a Powersports Powerhouse of the Upper Midwest


DealershipDESTINATION

Story and images by Gary Ilminen

42-43 destination_Layout 1 2/12/14 2:49 PM Page 42

Deforest, began in 2008 and opened inJan. 2009 as Mad City Power Sports. Itprovided an additional 20,000 square feetof sales and service floor space, togetherwith additional warehouse space.

In addition to the robust retail locationpresence provided by the two locations,Vetesnik has extended its reach into the

market nationwide through its Internetoperations.

“We’ve had inquiries and sales from allaround the Midwest and even from as faraway as Alaska through our website; it’simportant,” explained vehicle salesrepresentative, Ron Olson.

Taken together, the physical salespresence in the region’s market andInternet activities have taken the business along way from the humble beginnings of100 units a year. “We sell about 2,000 unitsa year now, including wholesale, and thingshave been gradually improving,” said salesand marine manager, Chris Gerber.

Of course, the recession had an impacton Vetesnik’s operations, despite the long-term growth of the enterprise, as GeorgeVetesnik, Jr. explained. “Things were still

pretty good in 2007; it was 2008 whenthings got tougher and we had to reduceour overhead. Keeping costs in line was amatter of keeping up with how fast thingswere changing.” Today, as the economycontinues to recover, Vetesnik’s operationsemploy an average of 30 to 32 staffmembers at both facilities combined.

Visibility and community connectionsare supported by dealer sponsored eventsat the store locations, in the communityand around the region. The Vetesnik PowerBoat Show in February, SpringConsignment Auction in March, the 2014Honda Wing Ding Gold Wing Rally in July,Vetesnik’s Rendezvous, local bike nights,sponsoring local ATV, snowmobile andmotorcycle racers are just a few examples.

Vetesnik Power Sports is a familyenterprise that has grown and progressedeven in the face of tough markets, perhapsbecause they strive to follow their businessmotto: “Where customers are treated likefamily.” t


Vetesniks Power Sports27475 US Highway 14East Richland Center, WI53581608-647-8808www.vetesnik.com

OEM: Honda, Yamaha, Suzuki,

Kawasaki, Can-Am, Arctic Cat,

Polaris, Sea-doo, Ski-doo and

Tracker Boats

Number of employees: 32

URL: www.vetesnik.com

42-43 destination_Layout 1 2/12/14 2:49 PM Page 43

All-in-all, 2013 was a decent year. Youcan see from Chart 1 that total store

sales were up, as was Net Operating Profit(NOP) – albeit slightly. Overall storemargins slipped a small amount for thegroup and the Top 5, but increased slightlyfor the National Norm (NN) dealers. TheTop 5 continue to do a better job of gettingpeople in the door and capturing theirinformation for less cost than the norm.There is a reluctance to advertise, but it is anecessity. The key is to put the money inthe right places with sufficient frequency. Ittakes more exposure now to get aresponse than it used to because of theincrease in media bombardment.

Chart 2 – Unit sales are up across theboard with the exception of the drop inused sales by the group. This is doubly badbecause this is where the gross profit is.You can see the result in their NOP. Grossprofit pays the bills, folks. Check out therelationship of number of turns to flooringand advertising expenses for the Top 5.Volume decreases the expenses per vehiclesold. They are not only better at gettingpeople in the door, they are better atclosing them.

Chart 3 – F&I went up nicely for 2013.This has been helped by the improvedfinancing situation with banks and creditunions. That said, the members of thegroup could use some help. The groupnorm is weak and even the Top 5 in thegroup are being pounded in per vehiclesold by the overall NN dealers. The resultswe see in dealers who attend an F&Itraining session make all these numberslook pretty anemic.

Chart 4 – PG&A sales were up withdecent gross profit per vehicle sold andreasonable parts margins. The accessoriesmargins for the group and the NN dealerscould use some work. Very soon we will beable to break this out by clothing and

By Steve Jones

BESTOperators

CLUB

December 2013 Year End Dealer Data Report

CHART 1

Total Store Sales 7.5 mil. 11.2 mil. 9.2 mil.

Percentage of Change in Total Store Sales from Prior Year 5.1% 13.6% 8.7%

Total Store Gross Profit Margin 23.2% 25.7% 25.7%

Gross Margin for Prior Year 24.1% 26.3% 25.4%

Total Store Net Operating Profit (EBITD) 3.0% 4.7% 4.4%

Door Swings: Percentage of change from Prior Year -4.1% 12.4% -0.3%

Cost per Door Swing $29.72 $43.45 $44.19

Logged Working Contacts: Change from Previous Year -1.5% 30.0% 2.1%

Contribution to Total Store Gross Profit: New Sales 28.1% 18.7% 29.3%t

Contribution to Total Store Gross Profit: Used Sales 12.7% 34.9% 13.1%

Contribution to Total Store Gross Profit: F&I 11.7% 14.6% 14.0%

Contribution to Total Store Gross Profit: PG&A 28.8% 35.2% 26.1%

Contribution to Total Store Gross Profit: Service 18.4% 22.6% 17.2%

Selling Expense as a Percentage of Total Sales 4.8% 3.2% 2.4%

Personnel Expense as a Percentage of Total Sales 8.2% 5.8% 10.0%

Administration Expense as a Percentage of Total Sales 3.4% 2.6% 5.2%

Facility Expense as a Percentage of Total Sales 3.8% 2.7% 3.6%

Average Total Store Staff Headcount, Year to Date 14.94 21.07 17.5

Gross Profit per Employee, Year to Date 112,473 132,413 130,611

GROUP TOP 5 NATIONALNORM DEALERS NORMTotal Store - YE 2013

Key performance indicators for the overall store.

New Units Sold Percentage of change from Previous Year 13.7% 36.8% 11.2%

Preowned Units Sold Percentage of change from

Previous Year -9.0% 11.2% 5.2%

Percentage of Change in Department NOP from

Prior Year -1.1% .7% .4%

Total New Units Gross Margin 12.0% 13.6% 14.6%

Total Preowned Units Gross Margin 19.8% 23.4% 20.0%

Change in Selling Margin from Previous Year -0.6% 2.2% 0.7%

Preowned to New Ratio 0.47 0.8 0.56

Preowned Inventory Turn 7.2 12.1 5.3

New Inventory Turn 2.5 4 2.7

Sales Personnel Expenses Per Vehicle Sold $362 $220 $267

Total Advertising and Promotion Per Vehicle Sold $61 $28 $107

Flooring Expense Per Vehicle Sold $118 $68 $125

Average # of Customer-Facing Staff, Year To Date 3.76 5.33 4.95

Gross Profit per Sales Employee, Year To Date 185,235 242,472 200,983

GROUP TOP 5 NATIONALNORM DEALERS NORMPC&A Dept Stats – Part 1

CHART 2Unit Sales


44-45 BOC_Layout 1 2/12/14 10:51 AM Page 44

accessories. Then we can make a betterdetermination of how to improve thissituation. The sticking point has beengetting all the dealers to set up accuratedealer management system categories sothey can accurately track these numbers.You should be doing this as well. Note thatthe Top 5 averaged about two moreemployees in this department and theysold around $20K more per person thanthe group or NN dealers. If you do themath, they had almost $300,000 moregross profit than the NN dealers. Thinkabout this for a minute. Right people, righttraining.

Chart 5 – Service was interesting. Whilethe NN and Top 5 dealers improved ingross profit, the group went down. The Top5 were beating the goal of two hours perrepair order and parts to labor ratio, but theNN and group dealers are still lagging. Thisis a key element in increasing service profitsand it is largely attributable to the serviceadvisor. These folks have an importantposition. You need an adequate staff withproper training. You want them to have lessthan 200 repair orders per month so theycan properly conduct a walk-around andup-sell with the customers.

Tire and battery sales are healthindicators. Dealers who sell more tires thanunits are generally stealing this businessfrom other dealers. So what? If you have adecent service advisor, you are getting a lotof add-on sales with every tire change. Ifyou can capture their tire business, youhave a chance to capture their servicebusiness and that can lead to more unitsales. It all works together.

Conclusion: The upward trend for ourbusiness is continuing – slow, but steady.This bodes well if we keep our expenses inline and provide the exceptional customerexperience that ensures we keep them ascustomers. Your people make thedifference. Hire the right staff and provideongoing training. It pays off. t

In April, GSA will be conducting a 3-dayworkshop called “5 Profit Centers.” Theworkshop covers the basics of 5 profitcenter accounting, personnel management,best practices and vital benchmarks for alldepartments. See www.gartsutton.com forfurther details.

Steve Jones, GSA senior projects manager, outlines dealership best businesspractices to boost margins, increase

profitability and retain employees. His monthly column recaps critical

measurements used by the leading 20-group dealers.


Finance Gross Profit change from Prior Year 6.1% 23.8% 14.0%

Gross Profit Per Vehicle Sold $238 $337 $448

Gross Profit Per Vehicle Floored $674 $911 $829

Percentage of Finance Penetration 51.0% 59.1% 53.9%

Percentage of Service Contract Penetration 32.1% 43.0% 31.2%

Percentage of Prepaid Maintenance Penetration 3.6% 9.3% 13.1%

Percentage Financed with GAP 9.8% 20.7% 15.7%

Personnel Expense as a Percentage of Department

Gross Profit 28.6% 18.0% 20.5%


Gross Profit $ per Finance Employee, Year To Date 202,056 289,411 256,514

GROUP TOP 5 NATIONALNORM DEALERS NORMFinance & Insurance - YE 2013

CHART 3

PG&A Sales - % of change from Previous Year 1.3% 9.3% 4.0%

Total PG&A Gross Profit Per Vehicle Sold $790 $1,095 $829

Parts Margin 35.9% 40.5% 34.9%

Accessories Margin 30.4% 35.2% 30.4%

Invoice Volume of Change from Previous Year -0.7% 20.1% 0.0%

Percentage of Inventory Obsolete 15.4% 2.5% 8.1%

Parts Inventory Turn 4.6 6.5 4.44

Accessory Inventory Turn 2.26 3.21 2.67

Personnel Expense as a Percentage of Department

Gross Profit 38.5% 30.2% 34.7%


Gross Profit per PG&A Employee, Year To Date 121,893 141,748 125,713

GROUP TOP 5 NATIONALNORM DEALERS NORMPG&A - YE 2013

CHART 4

Percentage of Change from Last Year’s Gross Profit -0.6% 10.3% 4.1%

Labor Margin 71.5% 78.2% 69.0%

Department Productivity 73.1% 86.3% 72.0%

Tech Efficiency 98.8% 107.3% 101.7%

Department Proficiency 72.6% 85.6% 71.5%

Billed Hours per Repair Order 1.76 2.31 1.76

Labor Sales per Repair Order $145 $184 $155

Parts Sold to Repair Order Ratio 0.96 1.1 0.95

Percentage of Change in Repair Order Volume from

Prior Year -4.5% 6.2% -0.8%

Tires Per Vehicle Sold 1.29 2.04 1.67

Batteries Per Vehicle Sold 0.9 1.26 0.14

Personnel Expense as a Percent of Department

Gross Profit 49.4% 35.0% 37.8%

Average # of Service Staff, Year To Date 5.74 7.79 6.34

Gross Profit $ per Service Employee, YTD 51,870 62,132 61,030

GROUP TOP 5 NATIONALNORM DEALERS NORMService

CHART 5

44-45 BOC_Layout 1 2/12/14 10:51 AM Page 45

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46-47 Classifieda 2/12/14 10:55 AM Page 46

MotorcycleAndPowersportsNews 47

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

ww

w.m

otor

cycl

epow

ersp

orts

new

s.co

m/r

esou

rcec

ente

r

Ad Index

CALLRoberto Almenar

330-670-1234ext. 233

[email protected]

TO ADVERTISE

IN CLASSIFIED

MARKETPLACE

ADP Lightspeed ..........................23

Amrep Inc....................................15

Amsoil Inc ....................................5

Air Suspension

Parts by Arnott, Inc. ..................43

Carlson Company ........................38

Duro Tire/Wheel..........................40

Emgo International..................7, 26

Fulmer Helmets ............................8

HJC America ......................Cover 2

Kymco USA ............................37, 39

Lonski and Associates, LLC. ........20

MBA Insurance ............................30

Motor Trike ..................................9

MTA Distributing......................3, 33

Namura Technologies ............10, 11

National Powersport Auctions ......1

Protective Asset Protection ........21

Rizoma USA ............................6, 29

Service Manager Pro ....................8

Sudco International Corp ....Cover 4

Sullivan's Inc. ........................16, 17

Vee Rubber America....................19

Vega Helmet Corp. ..............Cover 3

Walker Products..........................41

Wizards Products/

RJ Star Inc ................................27

XY Powersports ..........................25

Yuasa Battery Inc. ......................13

46-47 Classifieda 2/12/14 10:55 AM Page 47

On a night when the legends helpedcelebrate 40 years of Supercross,

and the evergreen Chad Reed added tohis own legendary status with a win, thestuff of future legends played out in the

pits even before theraces started. Thanks tothe kindness of aneighbor, a sick little boyand his family enjoyed aday at the second round ofAnaheim Supercross as thespecial guests of the GOAT(Greatest Of All Time) RickyCarmichael, Carey Hart andthe entire RCH Racingteam.Three-year-old Valentino“Valen” Ricciotti from nearbyDana Point, CA suffers fromOMS, a rare auto-immunedisorder that makes it toughfor him to enjoy life. RCHRacing Soaring Eagle wasable to put a smile on littleValen’s face … andintroduce some newwords into hisvocabulary.

Knowing that Valenloves motorcycles,neighbor KyleGryzanoski reachedout to Shiela Howefrom Sycuan Casinowhich resulted inValen becomingan officialmember of theRCH RacingSoaring Eagleteam at the

Anaheim 2 Supercross. As afully fledged team member, he received apersonalized VALEN Fox/RCH racingjersey, an RCH team helmet, his name inlights on the scoreboard and a chance towalk the track. Of course, no factory ride is

complete without a bike. Strider steppedup with a pair of “works” RCH Striders forValen and his big sister.

But perhaps the greatest part of beingon the team was a chance to get sometips from Ricky Carmichael and CareyHart. He isn’t saying what secrets the RCHRacing superstars passed along, but littleValen was beaming … and so were the bigguys. “Thanks for the chance to hang outwith Valen,” said team principal, CareyHart afterward. “Such an awesome littlekid. He and his family are great people.Positive thoughts for you lil’ man!”

“Thank you so much,” added Valen’smom Shandi in a post-race tweet. “Youhave no idea how awesome our day was... Valen fell asleep hugging his helmettight ... Great to have a day where Valennever stopped smiling!”

Little Valen doesn’t talk much, but afterhis day as an honorary RCH Racing teammember, he has added, “Vroom, vroom”and “Ricky” to his repertoire.

OMS is a rare childhood disease wherethe immune system tries to battle aneuroblastoma (cancer) and insteadattacks the brain. Left untreated, OMS willcause a life of agony for the child. Theorganization was founded on theprinciples of raising awareness of OMSand helping those researchers looking fora cure. Unlike the well-known diseasesthat afflict thousands of people, OMS hasdifficulty getting attention in the researchcircles and research funding is extremelylimited. The OMSLife Foundation’smission is to ensure that research is doneon this terrible disease. Get more detailsat: http://omslifefoundation.org.

In a case of good karma, Valen’s RCHteammate Josh Hill went on to win hisheat race that night. Thanks to Fox,Sycuan, Strider, Feld Entertainment andValen’s neighbor, Kyle Gryzanoski, formaking this day the stuff of futurelegends! t


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Motorcycle & Powersports News, February 2014