Issue link: https://read.dmtmag.com/i/208245
Helmet & Apparel FOCUS PSB 16 • November 4, 2013 • Powersports Business www.PowersportsBusiness.com Initial buy-in based on units rather than dollars Vega Helmets finds loyalty comes with margins BY DAVE McMAHON EDITOR IN CHIEF For dealers who are starting anew after the recession, or deciding to go it alone after moving on from their previous employer, initial buy-ins from vendors can limit their inventory. For example, when Ric Maready decided to open Big Boy'z of North Carolina in Wilmington, he began with an inventory of pre-owned bikes and apparel. He also sold both bikes and apparel and accessories on consignment. His business has grown since its April opening, and The ultra-lightweight full-face Stealth F117 from Vega has a $189.99 MSRP. It's available in eight sizes. he recently decided to expand to offer new accessories. "I wanted to carry new helmets, but the initial investment for a lot of brands is a lot more money than I wanted to take out of my cash flow to try to get some of their product in here," said Maready, a former sales manager at the now-defunct Britt Motorsports, which was also located in Wilmington. "Finally I found Vega and learned that they don't do their buy-in by the dollar amount, but by the piece instead. I told them I hadn't found anybody I could work with, and they told me 'Well, I think we're here to help you.' Now we have shelves of their helmets in here, and they all move really well." Maready has since added Olympia gloves to his 1,200 square-foot shop, where he keeps an inventory of 12-15 bikes and continues to consign goods for consumers. Many items that customers bring in for consignment, Maready said, still include the price tag and have never been used. Turning to Vega has given dealers like Maready a chance for growth, and an opportunity to better serve their customers. Whether the dealership is new to the industry or has deep roots, Vega will do what it can to help it grow. "We only deal with legitimate motorcycle dealers, but we recognize that size is not the only criteria. We will check you out," said Jeanne DeMund, vice president of Washington- Rick Maready, owner of Big Boy'z of North Carolina, turned to Vega Helmets to get the PG&A lineup at his newly opened dealership off the ground. based Vega Helmet Corp. "We don't sell to some guy operating out of his garage. But if you've got a shop and you're doing business, then we want to work with you. We have a very reasonable buy-in of six helmets, and it's always our philosophy that rather than load somebody up before they're familiar with the line, we'd rather have them be successful with a small buy-in, and then come back for more." SUCCESS IN ORLANDO While exhibiting at AIMExpo, dealers were intrigued by Vega's buy-in number. "Our buy-in is six helmets, and we feel like once a dealer experiences our product, quality and price, with the margins, they're definitely going to come back," DeMund said. "We don't have to load them up with an initial buy-in to get their loyalty. Dealers at AIMExpo were super excited, and we did pick up new dealers there. For a first-year show, we thought that was very, very promising." Vega has been in the marketplace since 1994, when DeMund and her China-based business partner, Lou Xu, set up a 10-by10-foot booth at DealerExpo in Cincinnati. Now owners of the factory in China where the helmets are made, the partners, back then, eased their way into the industry. "We asked every every dealer that walked by 'If you could buy these helmets at this price directly from us, would you be inclined to do it?' So many people said yes that we started sending out letters, and from that initial batch we got 25-35 yes responses, and started shipping helmets," said DeMund, who oversees U.S. distribution from the company's Seattlearea offices while Xu manages the factory in Ningbo, China. A warehouse in Columbus, Ohio, facilitates distribution. Farmington Cycle Center in Farmington, Mich., was an initial dealer partner. That led to See Vega, Page 19 ww W c BY Po gre gea bu fit. tec lea de fac the co all fem o c re f be res tur the lea fitm the ing res tha dif Sar Sch ha row Sch he are rea cro the eff bea dif ou ha wo fac of rec Als P15x23-PSB14-Focus.indd 16 10/30/13 12:20 PM