Cincinnati Holds Promise

Published in US Rider News, April 2008

A few years ago when the economy was hot and everything in the motorcycle industry was booming, the hot ticket were the custom made, one-off choppers. Bikes were being built on television and with plenty of disposable income, spending $40K or $50K + on these bikes wasn’t such a big deal. This past year with the housing bubble busted and disposable income dwindling, there is more supply than demand and companies are having to find new ways to stay in business.

But the worst of it may be over, according to the majority of attendees at the 8th Annual V-Twin Expo by Easyriders in Cincinnati.

John Parham, President of J&P Cycles, said he was very upbeat after walking through the expo and talking with all of the dealers and industry people in attendance. “The industry keeps moving with its trends.” He added that the industry’s lifeblood is its new products, and coming to the show you see “all of the little companies coming out with unique products that really showcase their creativity.” When asked about his feelings on the Expo and the industry as a whole, he replied, “It is all very upbeat. I’m excited about how optimistic everyone here is.”

Custom bike icon Arlen Ness was also pleasantly surprised at how well things were going this year. “Expecting the ‘doom and gloom’ we’ve had for the past few years, things are really good here.”

Not everyone was as carefree and optimistic about the coming year. There were a number of attendees concerned about the changes in the market place, specifically with an increase in product availability through the internet. Addressing some of these concerns was a well attended V-Twin Exclusive seminar titled “Survival of the Fittest.” The panel of guests consisted of industry veterans Bert Baker of Baker Drivetrains, Rick Fairless from Stroker’s Dallas and Click Baldwin from Carolina Harley Davidson. Several dealers in attendance brought up the issue of customers buying products on-line and bringing it into their local shop for installation. “What do you do when a guy comes to you with a tire, or an exhaust system he bought either mailorder or on the internet?”

Everyone on the panel agreed that you can’t just tell the guy to get out of your shop. One of the best suggestions from the panel was to give the guy “one freebie.” That’s it. You don’t have to be rude about it, but try to explain to the guy that he wouldn’t bring his own eggs to a restaurant and ask them to cook it for him. It’s the same in the bike industry. A shop isn’t going to survive on labor alone. So you give him his one freebie, and hopefully he comes back. Remind him also that when they buy the product from you, there is a warranty with it. If it’s an exhaust system, and something goes wrong, he is going to get charged for putting the system on. He’ll get charged again for taking the system off. Then he is pretty much on his own to do battle with the company he bought the stuff from. If he gets it replaced, he is going to come back and get charged again for putting the stuff back on. The prices are not that different from the catalog, and he’ll have a lot less trouble in the long run if he just buys it from you.

“I make sure they know that we will guarantee the lowest price,” said Rick Fairless of Stroker’s Dallas. “If the guy tells me he can get the part for $250, but my price is $300, I’ll do it for the $250. I’m not going to lose money on the deal, but if I can work with the guy, I will.” This is coming from a guy that on a typical Sunday afternoon has over 2,000 bikes hanging out in his parking lot.

Click Baldwin, President of the Carolina Harley-Davidson Dealer Association agreed to be on the panel, although he was concerned he might be viewed as the “Big, Bad Harley Dealer.” Baldwin told the standing room only crowd how important it is to give the customer a reason to come to the shop, and when he or she gets there to make them feel like part of the family. He and Fairless both use email newsletters to keep in constant contact with their customers. “The first thing we try to do when somebody new walks in the shop is to get their email address,” remarked Baldwin.
to get their email address,” remarked Baldwin.