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MOTORCYCLE www.PowersportsBusiness.com Powersports Business • February 17, 2014 • 35 Custom manufacturer offers licensing agreements to select builders BY LIZ KEENER MANAGING EDITOR Wild West Motor Company stands as a rarity in the industry. As many custom motorcycle manufacturers — such as American Iron- Horse, Titan Motorcycle Company and Big Dog Motorcycles — fell during the recession, Wild West hung on and found a way to survive and even flourish. Now the company is looking to grow in a new way, by entering into licensing agreements with 8-10 custom builders across the U.S. STAYING RESILIENT Wild West was founded in the late 1980s by Paul Seiter. Seiter started the business in Utah before moving it to San Diego, where the com- pany grew, producing a few thousand custom motorcycles and building a solid reputation. But in 2007, the company began experienc- ing financial difficulties. Stretched thin in an effort to create a Spyder-like TriRod and hit by the early effects of the recession, Wild West began looking for a buyer. Jim Winn, now senior partner and CEO of Wild West Motor Company, stepped in, bought the company and built a new facility for it closer to his home in Kentucky. Winn acquired the company because of its reputation and its NADA certification. But shortly after making the purchase, he adjusted the business to the new economy, and in doing so decided to disband Wild West's dealer network. "One right after another, [custom manu- facturers] were closing their doors, and each one of these companies, including Indian, were building basically custom V-twin motorcycles, so what that told us is if we were going to stay in the business, we were going to have to make some changes," Winn recalled. Since 2008, Wild West has been building custom bikes from its Kentucky facility. Each bike, at about $40,000 each, is paid for in advance, assuring every bike built is sold. With Winn's purchase coming during a tough economic time for many Americans, Winn was unsure how sales would hold, but they've surprised him by staying steady. Many Wild West buyers are athletes or those who have succeeded in Internet-based businesses. "There is a small percentage of the market out there that will not settle for just what's available," he said. "They're just not going to do it. They've got money, and they're going to spend money on what they want." Wild West currently has about 4,500 bikes on the road worldwide. EXPANDING BUSINESS Though Wild West has done well building its own bikes, the company is seeing a new revival in the custom motorcycle market, and it's looking to expand. "We see the market's starting to grow a little bit," Winn said. "We know that we're still not going to get back to the numbers that we used to have back in the early 2000s — not going to happen because I don't think the market is going to grow that much in the U.S. — how- ever we still have to try to eke out our little bit of the market." Going against the grain, Wild West is look- ing to establish licensing agreements with 8-10 motorcycle shops that build and sell bikes nationwide, instead of developing a traditional dealer network. "We would rather go back and put together licensing agreements with some of these deal- ers that have traditionally built bikes as well as sold bikes. They have a good reputation and have a good reputation for building good qual- ity high-end bikes," Winn explained. Licensee partners would receive the frames, tanks and electrical systems for Wild West's Gunfire and Dragoon models. The builders would then work with Wild West's wheel, handlebar and forward controls supplier in California to order additional parts to custom- ize each bike. Then the builder would assemble and paint the bike and send photos back to Wild West for approval. One shop has already experimented with the process to help Wild West solidify its licensee plan. Nearly 100 photos of that completed bike were sent to Wild West for inspection. "If the pictures come in, and the bike is everything that it's supposed to be, then we will issue the motorcycle with the VIN num- ber and foil that goes on it. It then becomes a Wild West motorcycle," Winn said. The benefits to the dealer building and sell- ing the bike are plentiful. First, the builder gets to share in the bike sale's profit; second, it adds to a dealer's offerings; and third — the point Winn stresses most — the bikes will be given NADA-approved VINs and KBB trade-in val- ues. Because Wild West is an NADA-approved manufacturer, the company has the ability to provide VINs to its bikes. Most small custom builders don't have that option, which usually makes customers' $30,000-$50,000 bikes unin- surable and difficult to finance. "There are dealers out there who have been building these custom bikes for a lot of years, and they want to keep building, but … they can't do it because of the liability out there," Winn said. Participating dealers will be required to ser- vice and do warranty work on the Wild West bikes they sell. Initially, Wild West is looking to ask each partner to produce and sell 5-10 custom bikes per year. "If we only build 100 [more] bikes a year, we've made good money and the company con- tinues to grow," Winn said. On top of the benefits for the dealers, Wild West and its vendors also expect to see perks from the deal. As more Wild West bikes are built, customers benefit as they're able to order the bikes from more locations Harley-Davidson dealership breaks ground on third store Las Vegas Harley-Davidson broke ground on a full-line Harley-Davidson dealership on the famed Las Vegas Strip on Jan. 23. A custom Nevada Sesquicentennial-themed motorcycle celebrating the state's 150th anniversary was revealed as part of the event, along with details on how one lucky rider will win it at the store's grand opening. The groundbreaking event welcomed Har- ley-Davidson owners from around the city as Las Vegas Harley-Davidson president Don Andress and vice president Timothy Cashman discussed the new location. Nevada Gov. Brian Sandoval unveiled a custom Nevada Sesquicen- tennial-themed motorcycle at the ceremony. Adding to its extreme rarity, Gov. Sandoval signed the bike shortly after its reveal. "I am pleased to see one of our great Nevada companies incorporate the Sesquicentennial into their business strategy," Sandoval said. "The design of this one-of-a-kind bike is impressive, and I commend Las Vegas Harley-Davidson for not only creating a showpiece, but also develop- ing a program that will integrate people and their love of riding into our state's celebration." Set to open this fall, Las Vegas Harley- Davidson will be located directly on the Las Vegas Strip at 5191 S. Las Vegas Boulevard, just Wild West bringing VINs to custom bikes 34 • February 17, 2014 • Powersports Business www.PowersportsBusiness.com Wild West Motor Company is starting a licensee program, in which custom bike builders can sign on to build Wild West motor- cycles at their own shops. An artist's rendering of the new Las Vegas Harley-Davidson store. (From left) Las Vegas Harley-Davidson vice president Timothy Cashman, Nevada Gov. Brian Sandoval and Las Vegas Harley-Davidson president Don Andress attend the groundbreaking of Las Vegas Harley-Davidson's Las Vegas Strip location. See Wild West, Page 37 Las Vegas Strip about to get a little louder P34x37-PSB3-Cycle.indd 34 2/5/14 11:21 AM