Seacoast Harley-Davidson – North Hampton, NH – March 12, 2007

CONTACT
Seacoast Harley-Davidson
17 Lafayette Road
P.O. Box 1740
North Hampton, N.H. 03862
(603) 964-9959
www.seacoastharley.com
OWNER
John McGonagle
BUSINESS PROFILE
Seacoast Harley-Davidson fully embraces its close proximity to the Atlantic Ocean. Just two to three minutes from the shore, the New Hampshire dealership is fully decked out in nautical gear, from its lighthouse-inspired main entrance to the sailboat suspended over the showroom. In addition to Seacoast’s design theme throughout its 14,000-square-feet showroom, the dealership encourages people to explore the coast via motorcycle with its rental business. Seacoast H-D has carved out a niche for itself as a destination dealership. It has been part of North Hampton under current ownership for 15 years. Owner John McGonagle has placed General Manager Al Contois in charge of daily operations; a dream job for Contois and a smart move for McGonagle. Before joining Seacoast, Contois spent 13 years with Harley-Davidson corporate in various capacities, including district manager. There, Contois tested his chops and developed a passion for the H-D brand. The dealership sells H-D motorcycles and is the exclusive dealer for Maine, New Hampshire and Vermont of Thunder Mountain Custom Cycles, a brand the dealership took on last summer. Seacoast is planning to open a satellite sales and service location in Rochester, N.H., in April. The new, 14,000-square-feet building is a one-story, classic New England-style structure with a rustic theme.
GREATEST CONCERN
Contois is highly conscious of the variables in play for running a profitable dealership and he worries about the instability of some, he said. The cost of health care benefits in particular can harm dealership profitability. Seacoast offers an extensive health care plan to its employees, Contois said, but “it’s hard to maintain that and stay profitable. We were named the second best small business in the state, partly because they couldn’t believe the benefits we offer.” Another aspect of profitability Contois keeps an eye on is discounting in the industry. “You really have to have processes in place to improve the value [of a unit] instead of discounting,” Contois said. “The easy road devalues the brand and that’s going to affect us all.”
WHAT’S HOT
“The Touring line is the most popular,” Contois said. As for what else is popular, “The Street Glide is probably the best,” he added. “It’s a touring model with some character and style to it, not just bags.”
CUSTOMER BUYING TRENDS
People are always looking for something cheaper, so price shopping has become prominent, Contois said. Customer price shopping leads to dealers wanting to make the customer happy and get the sale, which leads to discounting, something dealers can’t always afford to do and hope to remain profitable. Discounting is “probably the biggest struggle we’ve had here,” Contois said. “We want to keep the value in the brand.”
PARTS AND SERVICE
Seacoast’s parts and accessories business has been growing, but “not at the rate it has in the past five or six years. But its growing and retaining margins we had in the past,” Contois said. The dealership recently entered the pre-owned market and has found customers aren’t as inclined to accessorize as those who buy new units. But personnel are working to change that trend. Seacoast offers a lifetime priority maintenance program to its customers. All services for the life of the vehicle are covered. Program members can take advantage of a free motorcycle rental while their bike is in the shop, if they’re so inclined. The dealership guarantees 24-hour turnaround on select services.
PROMOTIONAL HOME RUNS
Contois picked up the idea to have quarterly new owner nights from an RPM Group 20 meeting. All customers who have purchased a new bike in the last quarter are invited into the dealership and given a tour. There, they meet with department managers from every part of the store and can ask any questions they might have. The dealership and new owners top off the night with some food and raffle giveaways. Seacoast also has started to hold women-only events, teaching things like how to pick up a motorcycle without hurting themselves and giving other useful tips. The dealership’s customer base has moved from 11 percent female to 16 percent. Seacoast also has set up a motorcycle drive-in theater in its back parking lot to show motorcycle-related movies like “The Fastest Indian,” keeping the dealership open later for people to peruse before show time and bringing in vendors to sell popcorn and cotton candy.
WORDS OF ADVICE
“Stay passionate about the product,” Contois said. “Remember why you got into the business in the first place. Build relationships with customers and employees.”
— Lisa Young