Issue link: http://read.dmtmag.com/i/679587
OPINION FROM THE EDITOR www.PowersportsBusiness.com Powersports Business • May 23, 2016 • 13 The North Carolina Motorcycle Dealer Association is helping dealers get the word out to their state representatives that taxes on labor will have a nega- tive impact on their business. The state tax applying to labor on repair, main- tenance and installation services went into effect March 1. The changes put franchised powersports dealers at a disadvantage, as local repair shops may not be required to charge the tax. As of March 1, according to the North Carolina Department of Revenue, powersports dealers in North Carolina must charge a sales tax on their labor regarding repair and maintenance (including clean- ing and refurbishing) services for motorcycles and off-road vehicles like ATVs. Prior to the law change, dealers were only required to charge sales tax on the vehicles, parts, etc. Here's how NCMDA lobbyist David Ferrell summed it up: "This has the potential to create a dif- ferent standard when compared to businesses that only do repair work and are not considered 'retailers' under the sales tax law," Ferrell wrote to NCMDA members. "For instance, a business that only per- forms repair work on may not have to collect sales tax on their labor on repair and maintenance, if they are not 'retailers,' whereas our members would have to collect sales tax on our labor for the same services. I do not know whether businesses that only provide repair services would have to collect the tax, but there is a concern expressed by some that this is the case. This is an issue that cuts across many indus- tries, and the legislature is currently examining this issue and may attempt to 'level the playing field' in the 2016 legislative session." An effective state association with a lobbyist at your state's capitol is the most ideal way to combat bad- for-business tactics like this one. I saw firsthand how effective the NCMDA is during a visit to their annual meeting earlier this year, so it doesn't surprise me to see motorcycle dealers in the state being informed in a timely manner about state laws that could potentially harm their business. INDUSTRY LEADERS We once again had a whale of a time narrowing our list of candidates for Executive of the Year and Industry Leaders. How do we select them? First off, it's entirely selected by the PSB editorial staff. So no need to send cookies or gift cards. We base the selections on names that we keep hearing while talking to dealers and other industry members throughout the course of the year. Those conversations serve as a launch pad of sorts, then we take a deeper look at how their businesses have helped the dealer body. And the more we talked to dealers, the more we learned that Dennis McNeal is "the guy" when it comes to the success Yamaha dealers have had over the past year. Managing editor Liz Keener does another bang-up job of getting to the core of what makes McNeal a great leader. Similarly, our selection of Industry Leaders is meant to showcase those who elevate the dealer body with forward-thinking ideas. Of course, none of this is to say that only five folks in the industry have done great things over the past year. Who would you have picked for Executive of the Year? Why? TOUGH MONTH You can see from our data partners at CDK Global that Lightspeed results did not bring much to shout about in April. Overall, same store sales at more than 1,500 dealerships were down nearly 3 percent overall in the U.S. The Northwest saw the biggest unit sales gain, with 12.5 percent growth compared to April 2015. If every line on every ticket is important to your growth, be sure to make plans now to attend our fourth annual Powersports Dealer Seminars during AIMExpo in Orlando. It's a surefire way to keep your dealership on the right track to profitability. PSB Dave McMahon is editor in chief of Powersports Business. Contact him at 763/383-4411 or dmcmahon@powersportsbusiness.com. 1. Polaris supports Operation Nunvalivut 2. KISKA taking design, branding to new levels 3. Bad Boy starts countdown to new side-by-side reveal 4. UTV OEM launches new name, new UTV lineup 5. Yamaha issues side-by-side recall 6. CFMOTO USA names new VP of sales 7. Bad Boy introduces first gas-powered UTV (video) 8. Polaris reports RZR recall 9. Polaris unveils Limited Edition Slingshot 10. Kolpin outdoors launches dealer direct program 11. Yamalube announces limited engine warranty 12. Polaris North American retail sales rise 6 percent in Q1 13. Wine, Levatich get interview time on Bloomberg (video) 14. Brammo Inc. grows after selling motorcycle business 15. UTV growth continues in 2015 The headlines above belong to the most frequently viewed articles from Powersports Business' three-times weekly e-news during the April 6-May 4 period. The number is based on the percentage of e-news viewers who clicked on the article's headline. To subscribe to e-news, go to www.powersportsbusiness.com/newsletter-signup. WHAT'S THE HOTTEST INDUSTRY TOPIC? Powersports Business blog ONLINE WITH POWERSPORTSBUSINESS.COM Leading industry executives and dealer consultants are among the contributors to PSB's blog. See below for recent blogs. Tax on service labor gets attention in North Carolina Visit powersportsbusiness.com/blogs PSB gets website redesign Notice anything different? Powersports Business has unveiled its recent web- site redesign, featuring a responsive, mobile-friendly platform.Want to look up news on a specific OEM? A customized drop-down has been added to the News tab at the top of the page, separating news by brand. Choose from more than 20 brands to learn what's new from Arctic Cat to Yamaha. The current issue can be found in our Features section. Continue to watch that space for updated digital editions moving forward in 2016. Be sure to stay informed on the latest news, events and products in the industry on PowersportsBusiness.com. COLLEEN MALLOY Director of Marketing, ARI By investing a little time each week to update your third-party listings and track your results, you can start reap- ing the benefits of posting your units to third-party sales sites. There are a wide range of sites you can use for this pur- pose, including Craiglist and eBay. NAPOLEON TETREAULT Sales Representative, Tucker Rocky Your value proposition, the reason your customers come to you instead of going elsewhere, is crucial to your survival as a business. You are in con- trol of it, and if what you want it to be is different than what it really is, it is your duty to change it. CHRIS CLOVIS Vice President, EagleRider Motorcycles Riding is a shared experience that builds lasting bonds. These relation- ships are at the core of our business, and the best companies in powers- ports tap into this power. They are built on a foundation that is reassuring, authentic, social and liberating. BRUCE MARCIA Director, Bruce Marcia and Associates Leading your staff takes work but offers the greatest return possible for your business. Sharing your vision and direction allows your staff to under- stand their role within the business. As a leader, you provide training and coaching to your staff. The North Carolina Motorcycle Dealer Association is helping dealers get the word out to their state representatives that taxes on labor will have a nega- tive impact on their business. The state tax applying DAVE McMAHON Thor's Sentry Vest, available from Parts Unlimited, was selected as a Powersports Business Nifty 50 winner earlier this year. (From left) Michael Tam, product designer and developer; Aaron Morales, senior designer; and Warren Davis, product designer, were part of the product's launch team. BikeMaster won another Nifty 50 award in 2016 for its Motorcycle Dolly. (From left) BikeMaster brand manager Phillip Mayfield and brand manager Katie Qatato show off their latest certificate. The Giant Loop team was proud to show offits 2016 Powersports Business Nifty 50 Award for its Fandango Tank Bag Pro. (From left) Harold Olaf Cecil, Giant Loop owner/founder; George Craig, operations manager; Dan Price, warehouse; Brian Frankle, design director; Dakota Buer, warehouse; and Paul Robson, production manager.