Issue link: https://read.dmtmag.com/i/343790
42 • July 13, 2014 • Powersports Business MOTORCYCLE www.PowersportsBusiness.com "We're the largest independent dealership in the state, and I think only Road Track & Trail is bigger than us in the Midwest," he said. "But we're only doing bikes. If we get the unit at the right price, we're going to make money. The hardest part is getting the units. We have to go get them and get them right." Saba said he uses "a ton of different ave- nues" to build his inventory (all on-road), including other dealerships, car dealers, whole- salers, and advertising that they buy bikes. The range of bikes is extensive, and including met- ric, Harley-Davidson, European, and whatever else Saba can acquire. "Sport bikes fly out of here. The used sport bike market has always been strong for us. We had 88 used sport bikes for sale when I checked the other day, 22 R6s," he said. "With the mar- ket for the used stuff, there's a buyer for every- thing. A guy might come in with awful credit but he just got his tax return and says 'What do you got?' We cater to everybody." A recent check of his online credit applica- tions attested to that. "We do a lot of financing, and from Satur- day at 4 when we closed to Monday we had 17 new credit apps," he said. "The problem is motorcycle lending is hard. There are a lack of banks that do it, and definitely a lack of sub- prime banks that do it. The demo for beginning riders getting into the market is young kids with a lack of credit, or bad credit." A year-round layaway program has grown from its initial adoption as a winter-only option. "The demand is there all year long," Saba s a i d . " Y o u g e t someone who sees the bike that's right for them, but maybe they're waiting for a CD to come due, and it's going to be another 45-60 days and they don't want to miss out on the bike. They can do layaway." The new build- ing will bring an additional revenue stream via the ser- vice department. Three service techs handle five lifts, and Saba aims to increase the tech count to six full-time employees. "Our techs stay busy because of our motor- cycles in general, but now that we're a retail location, it's a whole new animal," he said. Saba pays for shipping of bikes that he buys from out of state customers, as well as to ship bikes that customers buy. Strong relationships in the logistics industry have allowed him to keep those fees under control. "Insurance is up and the DOT is pounding on people. And there are less companies doing it, so they raised their fees for brokers," Saba said. "I have four or five guys who let me know where they're going to see if I need any bikes picked up or dropped off. But yes, the cost of transporting is up right now, compared to six months ago." iMotorsports held a grand opening celebra- tion at its new location on June 28. Pro sport- bike freestyle rider Clint Ewing put on show with stoppies, drifts, burnouts, wheelies and stalls on a van. The dealership offered $500 off all motorcy- cles and 20 percent off of parts and accessories. Giveaways included T-shirts, flashlights, stick- ers, Dunlop tire coupons and more. "We are very happy with our new home in Elmhurst. It's an easily accessible location in a great, welcoming community," Saba commented." PSB Lance Powersports brings knobby tires to 50, 125 and 150cc models BY DAVE McMAHON EDITOR IN CHIEF There's no denying that the new 2014 Cabo scooter from distributor Lance Powersports is an eye-catcher. The knobby tires certainly help the scooter set itself apart, and that's what they're meant to do, according to Lance CEO Gene Chang. "We wanted to give our consumers, the younger ones, something more exciting and more rugged, and make it look like a not-so- traditional scooter," Chang told Powerpsorts Business from his Mira Loma, Calif., office. "We've seen the Honda Ruckus doing well, and the Yamaha BW/Zuma, and the Cabo has that same style, the off-road look with knobby wide tires. It's more aggressive and looks cool." Chang reports that Taiwanese manufac- turer, SYM, sent its initial orders to Lance in April, and the Cabo has already become one of Lance's best-selling bikes. "We're very excited about this year. We've been working on this Cabo bike for about a year and a half, and you'll see that it's a totally in-house design. It's an exclusive design and you won't find another scooter with the same design. We had a lot of input into the style," Chang said. The Cabo will be offered in 50, 125 and 150cc displacements. MSRP is $1,699 for the 50cc; $1,999 for the 125cc and $2,299 for the 150cc models. Matte green, matte red, matte black and matte white are the color options. "Matte colors are pretty hot right now and in fashion," Chang said. Chang added that competitive pricing allows for about 35 percent dealer margins. "It hit the ground running. Sales have been over our expectations. We'll bring in a con- tainer from overseas and the next day it's sold. The dealers are turning them over just as fast," Chang said. "I've ridden that bike personally. It handles well, and it rides just as well on the street. It's a really great quality bike with a really high value. The quality of the Taiwanese manu- facturing is outstanding, and we have pricing that is unmatched." In Taiwan, SYM trails only Yamaha and KYMCO for the domestic market share lead. U.S. sales of Lance products, meanwhile, "have been growing. The industry is still a little soft, but we're growing by leaps and bounds. When we first started in the U.S., we only had a hand- ful of models. We've increased that twofold with more to come." Chang said that dealers are turning to Lance as a niche product that offers quality and variety. "Lance has the special combination of qual- ity, reliability and dependability, but we also have value pricing," Chang said. "Right now there's a void in the market in those areas. We offer reliable quality at an affordable price." Chang reports that Lance adds a dealer or two each week during the riding season, with 20-30 new dealers added per year. "We're really focusing on the scooter bou- tiques, the mom and pop shops, who see the value and variety. We have a product for any person who walks in," Chang said. "It's very unique that we can offer what we do to our dealers." PSB New Cabo scooter offers aggressive styling The new Cabo scooter from Lance Powersports features a $1,699 pricetag for the 50cc model. CHICAGO CONTINUED FROM PAGE 40 SERIOUS PRE-OWNED BIKE SALES Here's how iMotorsports has fared in the sale of pre-owned bikes: 2008 — 110 2009 — 180 2010 — 210 2011 — 240 2012 — 380 2013 — 500 2014 — Goal is 750 A CLOSER LOOK The 2014 Lance Cabo 125 has an aggressive sport style and uses ceramic-coated cylinder tech- nology. It offers a digital LCD dashboard and a multi-color backlight. It also has upgraded knobby tires, and a two-tone trim seat with red stitch. It's top speed is 59 mph and claims 90 mpg.