Issue link: https://read.dmtmag.com/i/164037
m Powersports Business • September 9, 2013 • 5 NEWS www.PowersportsBusiness.com raonake e's out duare So ed, be nd om 've rst uch B o rs. try ng wder er? nd ess at's uld he ent can k to Ms so ng fer nd will ell. to ew ow on out nd ave s. nge la. dia blic eggh ay- LANYARDCOVER CONTINUED FROM checks on that person every 10-15 minutes to see if they need any additional help or are ready to make a purchase. Cowles monitors the activity from a tower in the middle of the showroom, to assure the process is running correctly. "It just controls the showroom a lot better than I think anyone else has," Cowles said. Clawson Motorsports implemented the lanyard system about six months ago. At the beginning, some sales staff were against it, saying it was stupid, or that they felt pressured to hand out lanyards, but as they've gotten used to the system, they've grown to appreciate it. "Everybody likes it. It's proven to work," Cowles said. "Once it's proven itself and it works, they don't have a problem with it." The biggest thing Cowles has to watch is whether his salespeople have given out too many lanyards, but he says this typically only occurs with rookie salespeople. "In our system, if I see two or three lanyards out there in the same color, I tell [the salesperson] he is not to take another customer up; he has to pay attention to the customers he's already handed lanyards out to," Cowles reported. The dealership sees about 60-65 customers per day, so the lanyard system helps assure each is taken care of in a timely manner. And so far, the customers have appreciated the convenience. "The vast majority of people love it. We've had people say, 'God, this is a good idea,'" Cowles reported. "I buy the lanyards pretty cheap, so if they walk out the door, they walk out with the business card." JC Cowles, sales support manager, Clawson Motorsports The customers not only get the luxury of perusing the showroom at their own speed, but with the attached business card, they have the name of a salesperson to approach if they have questions. The dealership has gone all-in on the program, buying 10,000 lanyards at a bulk price of 18 cents apiece. Though customers often return the lanyards to their salesperson or Cowles, giving the staff a chance to catch customers one more time before they walk out the door, some take the lanyards home, which is OK by the dealership. "I buy the lanyards pretty cheap, so if they walk out the door, they walk out with the business card," Cowles said. "As long as the salesperson is doing his job and getting the person's info up front, he has a way of following up with the customer." Customers now leave the showroom knowing they were thoroughly taken care of, while not harassed, and Clawson Motorsports is assured each customer has been approached, even if they were "just looking." PSB Easton-Bell sales drop despite helmet share gains Easton-Bell Sports, Inc. saw net sales drop 5.8 percent to $201.6 million for the second quarter of 2013, which ended June 29. The decrease was due to the exit of the non-core fitness products category and lower hockey sales. Action sports net sales, which include bicycle and powersports equipment, were flat, despite Bell powersports helmet sales increasing 49 percent from market share gains. Gross margin increased by 70 basis points to 35.7 percent. Adjusted EBITDA inclusive of one-time severance expenses related to management ranges and costs related to the exit of the lacrosse product category was down 24.3 percent to $19.5 million. Exclusive of P01x07-PSB11-News.indd 5 those expenses, adjusted EBITDA was down 8.7 percent to $23.5 million. "We are pleased with our progress to date in reorganizing our company as we prioritize strategies and resources, streamline operations and rationalize spending. To accomplish this, we have incurred substantial one-time costs. Our financial performance when normalized for such costs reflects the strength throughout many of our businesses that is mitigated by the exit of the low-margin non-core fitness products category and challenges in our hockey business," said Terry Lee, executive chairman and CEO of Easton-Bell. PSB Demo rides a home run for Minnesota Indian dealer Twin Cities dealership triples allotted sales BY DAVE McMAHON EDITOR IN CHIEF You could've sold tickets to get into this line. The first worldwide dealership demo rides of the 2014 Indian Motorcycle lineup took place at Indian Motorcycle of the Twin Cities in the brand's home state of Minnesota, and the local dealer partner certainly didn't let down Indian's new owners at Polaris, only miles away. Arturo Welch, co-owner of the St. Paulbased dealership along with his mother, Kathy, offered four days of demo rides within days after the official launch, with each of the three new models available. The Chieftain ($22,999), Chief Vintage ($20,999) and Chief Classic ($18,999) all came away winners. "We blew away their expectations," Welch said. "They anticipated 50-80 a day, and we did over 500 demo rides, averaging over 120 each day." The rides, 17-20 minutes in duration, gave riders ample time to form an opinion about the bikes. "Everybody came back with smiles on their face," said Welch, who was proud to see members of the St. Paul Police Department come back with favorable reviews after their demo. Welch wasn't exactly crying himself. His store took pre-deposits on the bikes before they were released, and "We definitely had people buying during the demo rides," he said. "The stock that I was going to get from Indian? I sold that three times over." The demo rides were just part of an ongoing run of events that created a weeklong buzz. After beginning the demo rides on a Wednesday, Welch took a small group of riders on an exclusive visit to Polaris R&D facilities in Wyoming, Minn., the following day. On Friday, it was time for a trip — 89 riders strong — to the Spirit Lake, Iowa, Indian factory. An Indians-only ride to Stillwater, Minn., brought out another slew of riders the following day, and the dealership capped its memorable weekend with its annual Ride for Children's School Supplies, which raised more than $25,000. Welch certainly likes what he has experienced from the new addition to his product lineup, which also includes Triumph. "The only way you can possibly dump an Indian Chieftain is if you did it on purpose. It's the most stable bike you've ever ridden," he said. PSB PHOTO BY JOHN GALVIN chs PHOTO BY JOHN GALVIN ple he obver wnhey he m, apaned hey 8/28/13 10:01 AM