OPINION – Target some new revenue generators

A freelancer who was hoping to write some stories about cycling once asked me to lunch. I agreed, and we settled on a small Mexican restaurant about 20 minutes from my work and about 15 miles from his house.
I drove there in my truck. He showed up on his bicycle. Flabbergasted that he rode so far in such a short period of time, not to mention in a strong headwind, I asked him, “How did you manage that?”
He replied, “I just put my head down and pedaled.”
Easy enough, right?
If only the rest of our troubles could be addressed so easily. But such simple solutions aren’t always available to difficult situations. One such difficulty facing powersports dealers that I talked with on the West Coast earlier this spring is the dwindling profits they’re seeing from new bike sales. And we’re not talking about a few dollars here and there, but thousands of dollars of lost revenue.
And from discussions with dealers on the East Coast last week, I know this issue isn’t unique to the West Coast. So what’s to be done?
Well, putting your head down and pedaling — working even harder at what you’re already doing — probably won’t be the lone cure, nor possibly the most effective one. Instead, focus on different money-making options that may be on your crowded to-do list, but not necessarily a current focus.
In the past few months I’ve looked at two possible revenue generators — retail merchandising practices and auctions. Both deserve your attention and hopefully this edition’s articles on these topics will spur you to consider or reconsider these issues.
The lack of consistent retail merchandising practices should be especially vexing to an industry that has the prime advantage of being an “in thing.” Hollywood seems bewitched with motorcycles, from Fox network’s Dr. House and his bike (an Aprilia 1000cc RSV Mille for those curious) to what is seemingly becoming a cliché commercial that combines superstar and sport bike.
So the attention is there, meaning the opportunity to make money on garments and accessories should only be accelerating. But it’s only going to happen if your dealership looks more like Target and less like a swap meet. That sounds like a rather simple step, but industry insiders who see a number of dealerships around the nation say there’s plenty of examples of both.
Greg Blackwell, vice president of sales for LeMans Corp, which owns Parts Unlimited and Drag Specialties, says he often advises dealers to get out of their stores and visit the local Nordstrom’s or a franchised Harley-Davidson dealer to get a better grasp of effective retail practices.
When you do this, be sure to carefully consider the checkout stands and how many impulse items quality retail stores pack into the last few feet of retail space that a customer sees. Blackwell laughingly decries the amount of times he has grabbed $12 razor packages while standing in the checkout line.
Something else dealers may want to consider is getting involved in auctions. And more and more dealers are choosing that route, according to auction officials. Eastern Powersports Auction and Manheim officials are reporting increases in dealers attending their events and in the number of vehicles they’re selling.
And if you can’t attend an auction because of your staff or budget size, then consider the Internet.
Dave Moffett, the owner of Extreme Machines, Bow, N.H., has been using the Web to “attend” auctions for more than a year. His store carries a range of used powersports vehicles, including motorcycles, ATVs and snowmobiles.
“It takes me a whole day to go down there and do the auction,” Moffett said of the closest auction, Eastern Powersports in East Windsor, Conn. “Otherwise, I can just stay here and keep the business open and just sit at my computer.”
Not surprisingly, Moffett chooses the latter option, keeping his store open and bidding online. There are, of course, gambles to buying something sight unseen.
“I’ll be honest with you: I’ve gotten some stuff that I didn’t expect in the past,” Moffett said. “You have to expect that to happen, and you take what you get. You hope they described it as best as possible, and you go with your gut.”
Even with the gambling nature of it, Moffett said “the good outweighs the bad, definitely.
“It’s very hard to find newer, clean inventory,” he said. “It’s just one more outlet to get it.”
And given our current economy, all outlets and retail possibilities need to be explored. That, or you face the possibility of putting your head down and pedaling in the same, undesirable financial circles. psb
Send questions or comments to Editor Neil Pascale at npascale@ehlertpublishing.com