Florida Motorcycle Dealer Association

Sam Dantzler

Plan A or Plan B?

• Champion a cause.

• Tell you what you are doing wrong.

• Tell you what I think.

What I’m NOT here to do…

• As an industry, where are we?

• What’s the message? What’s possible?

• New Thinking/Products

• Can we help?

Agenda

• 2003 = 6250 franchised dealers

• 2006 = 7500 franchised dealers

• 2007 = 6500 franchised dealers– 30 got “picked up”– Almost a 13% decrease in 1 year

• Conclusion?

Dealer Base

MIC StatisticsTotal Units, YTD, Sept 2008        

  2007 2008 % Change

  # Units Mkt Share # Units Mkt Share  

On-Highway 560,529 44.5% 548,747 48.8% -2.1%

Off-Highway 152,086 12.1% 114,174 10.2%   -24.9%

Scooter 45,975 3.6% 69,227 6.2%   50.6%

Dual Sport 30,759 2.4% 39,805 3.5%   29.4%

ATV 470,630 37.4% 352,846 31.4%   -25.0%

       

Total 1,259,979 100.0% 1,124,799 100.0%   -10.7%

   

Key Points: ATV and Off Road continuing decline  

Scooters up dramatically  

Dual Sport continues to grow  

     

RPMG– Comparison

H-D Metric

Units Down 8% (555)

Down 14% (666)

Used GP 17.5 (+ 5%) 18.6 (-2%)

New GP 19.03 (- 2 %) 15.4 (+2%)

Payroll 8.2 (+5%) 8.1% (-1%)

Net 11% (-3%) 7.5% (FLAT)

F&I – Comparison

H-D Metric

F&I PUS 1181 (+5%) 506 (-6%)

Fin Pene 62% (+3%) 52% (-4%)

Svc Cont. 25% (FLAT) 28% (FLAT)

Payroll % 13.9% (FLAT) 19.7% (+8%)

Contrib 77% (-2%) 74% (-5%)

• “It’s not where you are it’s how you are.”

• “Elevator guy”

• Value of a door swing?

• Swings up 12% H-D and 16% Metric, yet Greets down 18% H-D and 8% Metric

Where is the headroom?

Fuel costs

• Fuel economy = used bike justification

• Consumer reports study - 26% of responses considered giving up their car with 18% looking at a motorcycle

• “Need Based Buyer”?

• Greets

• Psychology versus structure

• Easy on salespeople – tough on team leaders and managers

• Exponentially more intense

• Camel or horse?

Two-step sales process

• When the student wants to learn, training ALWAYS works.

• Only difference is customer experience

• If “show” is good, customer buys on experience, not price.

• Do you spend time with employees and customers, or do you invest time with them?

Value of training

• Manager frustrations?– Departmental communication– Expectations?

• How many business units under one roof?

• MUST make it easy to buy for customer, and MUST create show.

• Solution? TEAMWORK

Teamwork

• 1.5% H-D and 1% Metric

• Not conventional media

• Events

• Need to be a destination

• HOG chapter as greeters

• Loyal TV

Advertising/ Marketing

• What is your turnover rate?

• 200-plus percent?

• How often do people trade up on motorcycles?

• Where are they???

Owner Orphan Base

• Traffic Log Pro

• Automated T/L

• 18-11-3-1

• Polaris Test program – More OEM involvement

• Call Log Pro (CLP)

• Customers for Life (CFL)

MUST have a CRM

• 90-Day Online training

• “Hitting & Blocking” DVDs

• Training DVD’s

• Reports/Database

• Website Access/Chat Rooms

• MDPs

• Monthly in-dealership trainers

Can we help?

• January 24-26, Atlanta• For managers• 42 modules with 15 presenters• Industry Partner involvement

• Train up, or train out

Update 2009

Profit Gap Analysis

• As a category, who makes the most money in the US?

• Booze, chocolate, cycles

• Who participates?

• Powersports is inclusive!– Cycles, ATVs, boats, RVs

Escapism

• Sam.dantzler@assurant.com

• Cell 720-236-7296

• RPM Group (Assurant 20 Clubs) 303-338-1122, Dean Morton

Thank you! Q&A?