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OPINION FROM THE EDITOR www.PowersportsBusiness.com Powersports Business • January 26, 2015 • 11 We'll provide a more complete look at the Q4 2014 Powersports Business Dealer Survey in the February edition, but I wanted to provide a glance at the feed- back we received from dealers in early January, based on their Q4 performance. Yamaha and Polaris were the top two OEM brands sold by the participating dealers, and 25 percent said their quarter came in above plan. Another 34 percent reported an on-plan quarter, and 41 percent said they were below plan. About 37 percent said sales of new units were "very strong" or "somewhat strong," while 40 percent said the same for the service department. Used unit sales were reported as "very strong" or "somewhat strong" by 39 percent of the dealers who took the survey. In terms of customer buying interest in Q4 com- pared to the same quarter in 2013, 26 percent of deal- ers said it was "about the same." More than 39 percent of dealers said customer buying interest was either "significantly better" or "somewhat better" than the year-ago quarter. Dealership profit margins, meanwhile, were considered "about the same" by 38 percent of deal- ers compared to Q4 2013, with 26 percent report- ing margins as "significantly better" or "somewhat better." And that leaves 36 percent of dealers saying profit margins are "somewhat worse" or "significantly worse" than Q4 2013. But there's hope for a better future among the dealer body. About 35 percent of dealers said their business outlook is "significantly better" or "some- what better" than it was six months ago. Of those responding, 40 percent said it was "about the same" and 25 percent said their business outlook is "some- what worse" or "significantly worse." The list of dealers who complete the survey is impressive and made up owners and GMs who, to say the least, keep their finger on the pulse of the eco- nomic environment. For example, when asked "To what extent have your concerns about rising gasoline prices changed?" 75 percent of them said they were "somewhat less concerned" or "significantly less con- cerned." Meanwhile, the same question about the U.S. political environment caused 40 percent of the dealer respondents to say they were either "significantly more concerned" or "somewhat more concerned" about the U.S. political environment. Let's take a look at some of the Q4 2014 segment performance from the North American dealer body. Side-by-sides: Positive ATVs: Positive Heavyweight motorcycles: Negative Sport bikes: Negative Off-road bikes: Negative Negative PWC: Flat Finally, snowmobile dealers, at a rate of 2 out of 3, reported snowmobile inventory as "too heavy," in Q4, with 44 percent reporting that their sled inventory is "about right." RBC Capital Markets analyst Joe Spak provides an incredibly detailed and historical PDF to dealers who complete the survey every quarter. To top it off, you might win one of five $100 Best Buy gift cards courtesy of RBC Capital Markets. Send me a note if you would like to be added to our list. LUNCH TIME, LEARN TIME I didn't win a gift card, but it was a gift nonetheless that has found supreme placement in the decorated halls of the Powersports Business offices. It's always a treat when I get a call from CFMOTO's U.S. offices to extend an invitation to get their know company better. Dave Auringer, national sales director at CFMOTO Powersports, and Mr. Lai, president and chairman of the board at CFMOTO Power Co., Ltd., found some time during the holiday season for a lunch meeting, and it turned into quite a learning session. Once again Mr. Lai was in the giving mood. My "Happy New Year" gift is replica No. 0679 of a lim- ited edition run, and it's easy to see it's the CFMOTO "Escort Motorcycle of State Guest." CFMOTO won the rights to manufacture the police escort vehicle for visiting heads of state during the APEC meetings in Beijing in 2014. It was a fitting end to the year for CF. Auringer, of course, has a knack for introducing dealers to new products, having launched the Sea-Doo dealer net- work in the U.S. He's apparently well on his way to another impressive venture with his latest undertak- ing. The CFMOTO U.S. subsidiary is coming off its best year ever in 2014, and the U.S. dealer network has already topped 160. Back at the company's Hangzhou, China, headquarters, Mr. Lai is already seeing reasons to believe 2015 will be even better for his company throughout the world. OOPS! IT'S TAK NOT TORU Apologies are due for an incorrect name that we refer- enced in the Dec. 29, 2014, edition of PSB in a story from Suzuki Motor of America, Inc.'s dealer meeting in Las Vegas. As you know, the president of SMAI is Tak Haya- saki. And now we do, too, although we listed the previ- ous president's name, Toru Muraki, in the story. PSB Dave McMahon is editor in chief of Powersports Busi- ness. Contact him at 763/383-4411 or dmcmahon@ powersportsbusiness.com. 1. State's DMV: Slingshot not a motorcycle 2. Three more aftermarket companies implement MAP policies 3. Cycle Gear stores acquired by private equity group 4. Polaris' 2015 lineup includes RZR 4 900 EPS 5. Analyst offers 2015 views on Slingshot, Indian 6. Bobcat reveals 2015 UTV lineup 7. Yoshimura Suzuki: Stewart likely out for 2015 racing season 8. Fox Head, Inc. undergoes recapitalization 9. Aftermarket company gets acquired 10. OEM recalls kids' hoodies 11. Dealer's collection part of 750 antique motorcycles at Las Vegas auction 12. Record U.S. sales in 2014 for OEM 13. Industry exec named Professional Woman of the Year 14. Polaris RZR sponsors UTV World Championship 15. New Michigan motorcycle license law goes into effect The headlines above belong to the most frequently viewed articles from Powersports Business' twice weekly e-news during the Dec. 12-Jan.11 period. The number is based on the percentage of e-news viewers who clicked on the article's headline. To subscribe to e-news, go to www.powersportsbusiness.com/newsletter-signup. WHAT'S THE HOTTEST INDUSTRY TOPIC? Powersports Business blog ONLINE WITH POWERSPORTSBUSINESS.COM Leading industry executives and dealer consultants are among the contributors to PSB's blog. See below for recent blogs. Off-road sales driving dealers to Q4 success Visit powersportsbusiness.com/blogs In the spring of 2014, Powersports Business launched a Wednesday e-newsletter to go along with the already-running Tuesday and Thursday e-newsletters because we want to supply you with more industry news. Now, as 2015 begins, we've also decided to provide more insight from industry insiders as we welcome new bloggers to PowersportsBusiness.com. New to the lineup are: experienced service department manager Brandon Kirschner; Tommy Ady, founder of The WriteBack; Nate Stickney, manag- ing partner of the Sky Powersports Group; and Forrest Flinn, managing partner of Powersports Management Concepts. Look for their blogs in the three-times-weekly e-newsletter and on PowersportsBusiness.com. BRANDON KIRSCHNER Experienced Service Department Manager Nearly every service manager has inherited a warrant claims nightmare at some point in his or her career. Bur- ied in some dusty file folder in the dark recesses of that lower left desk drawer is the most hideous of all creatures, the Unpaid Warranty Claims folder. TOMMY ADY Founder, The WriteBack Every dealer that I work with has a business manager. In fact, some of them are really good, and then when you start analyzing the top-producing F&I people, it's like a feeding frenzy of talent and lessons. CHRIS CLOVIS VP Sales, EagleRider Motorcycles Contrary to what you hear from "empowerment" gurus, salespeople cannot control results. You can't "decide" to sell 200 bikes this month, then "cause" 200 buyers to walk through the door, and then "force" them to buy from you. COLLEEN MALLOY Director of Marketing, ARI Network Services The art and science of SEO can be a bit overwhelming, but as we turn to 2015, let's take a few minutes to sim- mer down actionable takeaways of two key SEO trends uncovered in the recently-released MOZ Annual Local Ranking Factors Study. DAVE McMAHON CFMOTO's Dave Auringer (left) and Mr. Lai (right) have helped the Chinese brand reach new heights in the U.S. (Below) The CFMOTO 650cc police escort vehicle replica. New bloggers for PSB