Issue link: https://read.dmtmag.com/i/274927
www.PowersportsBusiness.com MOTORCYCLE Powersports Business • March 17, 2014 • 37 MOTORCYCLE Since Indian Motorcycles started delivering its first Polaris-built bikes in the fall, the brand has been increasing its dealer network by add- ing all-new dealerships and seasoned stores to its roster. Those who have added Indian to their already-established brands have been required to build out their stores to include an Indian- specific area, but the dealers who have are excited about the investment because it allows them to bring in a refreshed American-built brand, and sales so far have proven that they may see some big returns on that investment. Powersports Business managing editor Liz Keener caught up with a couple dealers who have taken on the Indian line to learn what changes they have had to make and what they expect for sales this coming year. Dealership: Mies Outland in Watkins, Minn. Co-owner: Jeff Mies Other brands carried: Polaris, Victory, John Deere PSB: What made you want to take the Indian line on? JM: I think it's such a respected brand, and there's so much attention that the customers are giving it. We just thought it would be a great long-term fit for our business, and we think it's going to turn into a very substantial business for us down the road. PSB: What changes did you have to make to your dealership to accommodate Indian? JM: We added on a new showroom with a separate entrance into that showroom, which is connected to our dealership, and we also hired additional staff to run that portion of the business. PSB: How are sales so far? JM: Very good. We got our first bikes at the beginning of October, and being a Minnesota dealership, we really haven't had any time for people to get out and enjoy the bikes very much, but that being said, our sales have actually been very good, a lot of interest in the bikes. PSB: Are you offering demos? JM: Yes. We did a lot of demo rides last fall with the weather permitting and as soon as it gets nice again here, we'll have bikes on the road every day. PSB: How important are demos? JM: I think it's very important. As soon as someone rides it, it translates into confidence in the bike, and as soon as they realize how nice this bike is, that it's probably substantially nicer than the bike they're getting off. It closes deals in a hurry. PSB: What do you expect for sales this spring and summer? JM: I really believe that this spring that we will sell Indians at a pace that I guess we're not used to selling motorcycles at. I think it's going to be difficult for us to even keep up with business is what I'm hoping. … I expect it to be very, very busy once we get into the riding season. PSB: Being a Minnesota dealership, does it help your selling proposition that Indian par- ent Polaris is a Minnesota company? JM: I think people are maybe more comfort- able with Polaris being the parent company because of just our familiarity with the com- pany, and we're very used to purchasing Polaris products or owning Polaris products, so from that standpoint, I think people are very com- fortable with the fact that that is who is bring- ing Indian to the market now, yes. Dealership: Big #1 Motorsports in Birmingham, Ala. Principal: Joe Belmont Other brands carried: Can-Am, Ducati, GEM, Husqvarna, Hyosung, Polaris, Sea-Doo, Star, Suzuki, Yamaha, Zero PSB: What made you want to take the Indian line on? JB: Passion for the name, Indian of course, and being a Polaris dealer, we also had faith that Polaris could pull this off and do this right, which they did, I may add. You know, we were trying to look for something … I have followed Harley through the years; I think they've done a tremendous job in what they've done, and I believe that the only American name that can compete with Harley would be Indian, and it's proven to be true in that regard. We had the Indian demo truck here, and I would say 90 percent of people who demoed the Indian rode in on a Harley, and they have accepted it and embraced it, not every single one but well over 50 percent. I have probably 15 pre-owned Harleys on my floor that were traded in on the Indian. But to answer your original question, it was the passion for the name, the heritage that Indian has had and knowing that Polaris financed the deal. PSB: What changes did you have to make to your dealership to accommodate Indian? JB: We did a build out. Polaris had a sug- gested … well, I suppose you can call it a dealer build out is what they called it. They came in, and it took about a week to 10 days. They painted the walls … really, really made it nice, so when you come in, it's like a store within a store. It's one of the better things we have done. They did an excellent job on the design. Customers know we're in the Indian NPA sees earlier response to inventory build BY DAVE McMAHON EDITOR IN CHIEF The sales and marketing staff at National Pow- ersport Auctions' mammoth headquarters facil- ity in Poway, Calif., does its job from behind the scenes. Far away from the endless rows of powersports vehicles on the auction floor, and the excitement that an auction brings, they work the phones with efficiency, ensuring that dealers nationwide are informed and educated about NPA's offerings. Whether dealers need to liquidate inventory or build up their showfloor stock to prepare for spring sales, the nation's only auction limited to participation by powersports dealers is ramping up for what appears to be a strong spring. Meanwhile, members of NPA's national sales staff are busy on the frontlines, building relationships with dealership personnel at site visits. In fact, it's not uncommon for sales staffers to pass through the doors of multiple hundreds of dealerships in a given year. It's all part of an educational process aimed at inform- ing dealers about the prospects for using NPA as part of their inventory plans. "I'm of the belief that people don't like to get sold," NPA chief operating officer Jim Woodruff told Powersports Business during a recent visit to the company's San Diego-area headquarters. "I don't like to get sold. If someone calls me on the phone and to try to sell me something, I'm the first guy to say 'Thanks, I'm in a meeting' or 'The kid's crying' or whatever," Woodruff said. "We do take the educational approach. We have something that people need, and the opportu- nity to teach them how to use it better, that it exists and is available, is part of that." A full-service approach to sales and market- ing — headed by executive vice president John Roshala, national sales director Mike Murray and media manager Ryan Keefe — has been particularly effective for the company. "They're all working in sync with each other, where they're each taking a piece of the interaction with the dealer. It's working really well. It's educational and it's about relationship development," Woodruff said. "The dealers have a number of people who can help them. And if we can't help them, that's OK. But I think the proof is in the pudding when it comes to our auctions." STRONG START TO YEAR Dealers turning to NPA in the winter months have been doing so in impressive numbers. "2014 is really getting off to a good start," Woodruff said. "From the wholesale view, we can see the way dealers are thinking and plan- ning ahead. The appetite for inventory so far has been tremendous. Prices have been strong — not ridiculous, but stronger than this time last year. And it's somewhat independent of product mix." A cold and snowy winter — more than half of the country was covered in snow in late February — does not appear to have lessened dealers' appetites for turning to auction to build their inventory. "Last year we had the wet and cold spring, and this year's been interesting because it's been cold and snowy for the most part, but the opti- mism dealers have going into this spring is stron- ger than last year. I think they're all betting we're not going to have back-to-back bad springs, and this spring is going to lighten up a little bit." Dealers have been equally active on the liq- uidation side, Woodruff said. "Our San Diego sale (in early February) had Indian dealers already going gaga over future At auction, dealers prepping for strong spring 36 • March 17, 2014 • Powersports Business www.PowersportsBusiness.com See Indian, Page 39 Dealerships such as Mies Outland in Watkins, Minn. (top), and Big #1 Motorsports in Birmingham, Ala. (bottom), have undergone build outs to accomodate the new Indian Motorcycle line. Mies Outland in Watkins, Minn., added a new showroom to its dealership for the Indian brand, as seen in this rendering. P36x39-PSB4-Cycle.indd 36 3/5/14 11:55 AM