Issue link: https://read.dmtmag.com/i/274927
www.PowersportsBusiness.com Powersports Business • March 17, 2014 • 17 PSB FOCUS MVP's one-time purchase of $89.95 has rewards at St. Paul Harley-Davidson BY DAVE McMAHON EDITOR IN CHIEF As the founding dealership of the Motorcycle Value Program (MVP), St. Paul Harley-David- son takes a keen approach to ensuring that its customers receive the best motorcycling expe- rience possible. And that's only the start. General manager Kurt Harder developed the program after discovering in 2000 that there were no similar offerings available to dealerships. So he and his team at St. Paul H-D collaborated on the program, and launched MVP at the dealership in August 2001. In 2004, it began to franchise the loyalty and business solution concept to select dealer- ships in the U.S. Now with 22 locations, more than 100,000 MVP members globally enjoy the benefits of MVP, including more than 18,000 that are members of St. Paul MVP and Wild Prairie MVP, its sister store located in Eden Prairie, Minn. Harder continues to oversee and manage MVP, Inc., where he selects franchisees and provides initial training at MVP stores. At St. Paul Harley, which has a 54,000 square-foot operation alongside Interstate 94, sales are dramatic. In fact, the store ranked first among Harley dealers in its district in new motorcycle sales, and last year it received Power 50 honors from Powersports Business. MVP, however, gives St. Paul Harley the edge it had sought since owner Tom Giannetti bought the store in 1999. "When Tom became the owner he quickly realized that he had a HOG chapter that was growing by leaps and bounds and had over 2,000 members," Harder told Powersports Business. "He also realized a lot of the members were simply members because the dealership had offered them a 10 percent discount on in- stock parts, accessories and general merchan- dise. But that doesn't necessarily truly bring you loyalty." In addition to keeping its existing custom- ers, the staff wanted to find ways to attract new buyers. "We talked about all kinds of different ways to create loyalty. We decided that it was such an important endeavor that we not only create loyalty, but most importantly, differentiate our- selves from every other dealer in our market," Harder said. "When you think about what we do, we get all of our products from all the same places at all the same prices. We buy the motor- cycles from the Motor Company. All dealers buy from the same places. It's not like any of us truly have a wholesale pricing advantage. OK, now what it boils down to is: The consumer just needs to make the decision on which deal- ership to spend their hard-earned cash. And they're going to make that the decision based on the value that they feel they're getting for their hard-earned dollars. If all dealers are the same, they're singing the same tune and doing nothing really differently from each other and the consumer thinks 'I'm going to get the same mediocre experience at all these dealerships, so whoever is the cheapest price, I'm in.' A com- pany can't thrive for years and years and years Customer loyalty a game-changer 16 • March 17, 2014 • Powersports Business www.PowersportsBusiness.com This issue: Power 50 Next issue: V-twin House of Harley creates off-season sales with Indoor Bike Show BY LIZ KEENER MANAGING EDITOR January doesn't offer much in way of excite- ment for Milwaukee-area motorcyclists. With snow, ice and salt on the ground and frigid cold whipping through the air, it's unlikely many bikers, if any, set out on two wheels during the first month of the year — especially this year. So to spur sales and get customers think- ing about riding season again, House of Har- ley-Davidson hosted its 11th annual Premier Indoor Bike Show Jan. 24-25 at the dealership. The show is purposefully hosted each year dur- ing the weekend between the NFL's champion- ship games and the Super Bowl. "Just all around it's a great traffic builder in a very cold time of year, and I think it gives peo- ple something to do to remind them there will be life after winter," House of Harley president John Schaller said. The event features 25-30 motorcycles on dis- play, along with local vendors, from motorcycle- and non-motorcycle-related companies alike. And though the show has been going on for more than a decade, it's always evolving, with this year's event offering a new Showcase class for builders who wanted to show their bikes, but didn't want to complete for the cash and prizes awarded to category winners — including House of Harley employees. The dealership's new P&A manager also helped the dealership bring in new bikes never seen by show attendees. "We really enjoyed a lot of fresh, new entries this year, which was exciting, and we had bikes coming in that we'd never seen before," mar- keting manager Sarah Maio said. Bikes are judged and awarded prizes in categories including: Stock Bagger, Modified Bagger, Pro Class, Trike, Antique, Swing Arm, Rigid Frame, Barn-Find and Lowrider Bicycle. This allows anyone from the at-home builder to the professional builder to compete side- by-side. House of Harley allows any make or model in, with this year's show including a Ural and Indian among the Harleys and others. FOOD, DRINK AND VENDORS Among the vendors were a home improvement company, a custom bike painter, an apparel company and a riding club. Food and beer were also sold. The vendors, Schaller says, add to the draw of the event and bring more people in the doors. "I think people are happy and in a good mood," he said. "There's smiles; there's beer, and with the vendors, depending on what you're looking for and who the vendors are on those days, it creates more opportunity for people to see stuff." Bands also play each night, with Reverend Raven and the Chain Smokin' Altar Boys tak- ing the stage Friday night, and Spoiled Rotten closing the event on Saturday. The Indoor Bike Show lasts two days for a See House of Harley, Page 24 All makes and models of bikes, created by at-home builders and pros, were welcome, including this Indian and a Ural. House of Harley-Davidson in Milwaukee, Wis., hosted its 11th annual Premier Indoor Bike Show Jan. 24-25 in an effort to boost winter sales. HOGS OF WINTER P16x25-PSB4-Focus.indd 16 3/5/14 11:43 AM