PowerSports Business

December 29, 2014

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www.PowersportsBusiness.com NEWS Powersports Business • December 29, 2014 • 7 city for decades, but despite a few previous relocations, the dealership had never been on the Strip until now. As Las Vegas' economy has been slow to recover, the price of land on Las Vegas Boulevard dropped significantly in 2012, giving Andress and Cashman — who also own Red Rock and Zion Harley-Davidson — an opportunity to finally move their dealership to the famous Las Vegas street. The 65,000-square foot dealership is not only a short walk from the Las Vegas sign, but the property also abuts the airport, allowing air- plane passengers to see the store as they land. In fact, LVHD has affixed signs to the airport- facing outside wall and the roof of the building, so airplane passengers don't miss it. So far, the more-visible-to-tourists location is working. "We were averaging about 1,000 people a day through the front door when we opened. We think 20, 30 percent of them came from the sign and have never been in a Harley-David- son dealership before," Cashman said, adding that dealership is working on better tracking those numbers, so he can better understand the store's customers. As winter crept in, the dealership is now averaging closer to 600-700 customers per day, but that's hardly anything to scoff at. RENTALS A KEY PIECE And the dealership isn't just aiming to gain T-shirt sales from visitors. The rental area is a large feature in the front of the store, with an oversized map covering the wall, to show rid- ers where they can take off for a day-long (or more) ride. LVHD is also offering quick service to visitors who have ridden in but need repairs to continue on their journey. The dealership also created a Recharge Zone convenience store, accessible from inside the dealership and through its own outer door. The Recharge Zone sells soda, beer and snacks for both the casual passerby and the customer who needs refreshments while making purchasing decisions, and the department is expected to be an extra profit center. However, despite this renewed focus on tourists, LVHD hasn't forgotten its regulars. The dealership's loyal customers also find the location easy to access, as the driveways filter in directly from Las Vegas Boulevard. The longtime customers have responded well to the move. "Bike sales have picked up in this location compared to the other location," Cashman said. "That is good; we hoped that would happen." LVHD has also turned its airport-facing back lot into a motorcycle training course, with a few classes already completed by mid-Decem- ber. And it has a mezzanine that overlooks the showroom that's available for rent. The dealership is also big on events, host- ing a wet T-shirt contest and a band on its first weekend in the new location. A grand opening followed on Nov. 1, which included appearances by dirt track riders Jared and Nichole Mees, live music, a live performance by a magician, local food trucks and the giveaway of the Nevada 150th Anniversary 2014 FLHX Street Glide, signed by Gov. Brian Sandoval. Tickets for that giveaway were $150, and the proceeds benefitted the Nevada 150 Foundation, Inc. Events continued throughout the fall and early winter, with December Rodeo Days run- ning Dec. 3-13, as the dealership gave away a set of National Finals Rodeo tickets to a MotorClothes or P&A customer, provided $10 off a purchase for a toy donation and offered three autograph sessions with world champion bareback rider Kaycee Feild. Though Las Vegas' economy is still strug- gling, LVHD will end 2014 flat with 2013. Cashman is hopeful 2015 might be the year the dealership will see increases, and he's hoping the new location will be the driver for improvement. "We were very nervous because we thought that some good things could happen, but until they do, you're building, and you've got your fingers crossed," he said, "so we're pleased that — it looks like at least — things are going to work out like we anticipated." PSB LAS VEGAS H-D CONTINUED FROM COVER NVP CONTINUED FROM COVER (Top)Las Vegas Harley-Davidson can easily be seen from the Welcome to Fabulous Las Vegas Nevada sign, a tourist hotspot. (Middle) People were filtering in throughout the second morning of Las Vegas Harley-Davidson's soft opening. (Bottom) Las Vegas Harley-Davidson's Recharge Zone is a convenience store within the dealership, designed to attract passersby and regular customers. LVHD's owners believe this department will be a boost the dealership's bottom line. steady activity in our Legend booth throughout the event. The dealers were excited about the new Legend Suspensions products in 2014 and the new fitments for 2015." Jurrens, whose Sturgis, S.D.-based company prides itself on being a "superior, American- made product," has found that dealers have been selling 2014 Legends new Aero and Revo product at a high rate, and are excited about additional fitments for 2015. "Dealers prefer to sell the Legend line because they know it is the best option for their custom- ers. Legend offers the highest ride quality, life- time warranty and the best margins," he said. Paul Yaffe, meanwhile, echoed Jurgens' assessment of the NVP, as it once again boosted his Phoenix-based Bagger Nation products. "It was awesome. It is every year and this year was no different," Yaffe told Powersports Business. "We as vendors were excited to see the excitement from the reps. With all the new product I saw coming out there, I was super excited. I was very happy with the reps and the response to our products. It was a huge success for us." Yaffe, who showed about 50 products for 2014 and 2015 Harley-Davidson models at the show, saw particular interest in Bagger Nation's saddle bags and Lid Lifter saddlebag levers, ignition switch covers and handlebars. A new Drag Specialties-exclusive Razorback tank for H-D touring models, as well as Drag- specific saddlebags and fenders, also generated a positive response. "We're very excited about what Drag Spe- cialties will be able to do with the Razorback tank," he said. Yaffe noted that he viewed the 2014 market as "kind of disappointing. We had a very good spring, but then summer wilted down and late summer really softened. We've had very modest traffic from July, and it still feels soft. It's generally lean going into the holidays. But I like to think we're quite a bit ahead of the curve with 2015 product. I think we're leading the charge there, and I'm excited for the new year." Kevin Lehan, general manager of Drag Spe- cialties Seats in Rogers, Minn., reflected on the positive response from the company's custom order seat program. "You're noticing more and more seats on these baggers that you can't buy off the shelves," he said. "We had a variety of seats in our booth and it was funny — people would walk by the booth, take a look, go about 10 feet past us then turn around and come in." Similarly, Brian Klock, owner of Klock Werks Kustom Cycles in Mitchell, S.D., found the Drag NVP to be "a home run." "Dealers were serious about getting busi- ness done, and dealers and reps were excited about our products. We know that people are going to sell what they have from us." Klock showed a new, "livelier and more vibrant" dealer POP display that is available for free for dealers who buy three windshields. And dealers continue to thank Klock for offer- ing the brand's Try It Before You Buy It pro- gram for the windshields. "One dealer came up to me and said he wanted to shake my hand. He said, 'I made $36,000 off you selling 60 windshields a month!' I mean, who doesn't want that in their parts department?" Klock also saw continued chatter about the company's fenders, as well as a reduction in pricing on its handlebars. "We were one of the most expensive handlebars out there, so taking $100 off the retail price is going to be a huge benefit," Klock said. "I mean, I was once a single-car-garage dealer guy. I know they can make it like I did, and that part jacks me up." PSB

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