Issue link: https://read.dmtmag.com/i/752766
www.PowersportsBusiness.com Powersports Business • November 28, 2016 • 23 New Louisiana facility assembles mini bikes, go-karts for kids BY LIZ KEENER MANAGING EDITOR While a lot of marketing efforts as of late have been focused on the millennial crowd, Monster Moto is already looking ahead and attracting Generation Z to powersports. Monster Moto has developed a line of mini bikes and go-karts aimed at getting kids away from their phone screens and outside. Monster Moto was launched in Dallas in 2013. Before developing its first bike, the com- pany contacted 600 small engine repair shops and powersports dealerships to ensure that if someone bought a Monster Moto, they'd have a place to get it repaired. Then development and production began. After a year of working with Monster Moto's contract manufacturer in China, the company came out with an 80cc mini bike, an 80cc go-kart and a 250W electric mini bike. The vehicles are unique to Monster Moto in that the engines are exclusive to Monster Moto in North America, and the bikes and go-karts can't be sold in the U.S. by anyone but Monster Moto. Knowing the company would have to build a solid foundation before earning space in powersports dealerships, Monster Moto first formed relationships with specialty retailers. Those that have been successful with the units so far include The Home Depot, Sears, Kmart, Ace, True Value and Do It Best, along with farm and fleet stores like Murdock's, Blain's, Theisen's, Atwoods, Rural King and Big R. CEO Alex Keechle also began calling pow- ersports dealers, inquiring about what Mon- ster Moto needed to do to earn their trust. He found powersports dealers were nostalgic about mini bikes, as many had owned Rupp machines in the past, but they were also bru- tally honest about how they've been burned by imported product in the past. "Powersports dealers are some of the last group of true independent business people in the U.S.," Keechle told Powersports Business. "They are true entrepreneurs, so you have to have your stuff together with them." MOVING TO RUSTON Shortly into its life as a company, Monster Moto began considering on-shoring its assem- bly. The company looked at three primary factors: the North American market for mini bikes and go-karts, projected MSRPs and on- shoring logistics. With the help of UPS, which has assisted with everything from supply chain to shipments to packaging to warehouse layout and more, Monster Moto made the decision in 2014 to bring assembly to the U.S. "We did a nationwide search, and after nar- rowing down the location to South Carolina and Louisiana, we selected Louisiana and then specifically Ruston. We opened our doors in June," Keechle said. Monster Moto built a 100,000-square- foot facility at the end of an old airport run- way in Ruston to house its new assembly operations. With savings coming from bulk parts orders, Monster Moto is able to pay a labor force of 40-60 employees, depending on production needs, without passing extra costs along to consumers. Parts are now being shipped directly to Ruston, where workers assemble the vehicles using tools like Ingersoll Rand torque wrenches to ensure top quality. Monster Moto tests each engine before it leaves to guarantee that it's run- ning properly. "As of January 1, 2017, outside of carry- over inventory, all Monster Moto units will be assembled in the U.S., so about 25-30 percent of our sales this year will be assembled-in- the-U.S. products. And outside of carryover inventory from 2016 into 2017, we're aiming for everything assembled in the U.S. in 2017," Keechle explained. ENTERING THE POWERSPORTS INDUSTRY With its assembly moved to the U.S., Monster Moto believes now is the time to approach powersports dealerships. "Now it's time to go to that last bastion of independent businesspeople and say, 'We've answered all of your concerns. You can make good margins. We've got a great quality prod- uct, and it's assembled here in the U.S.,'" Keechle said. Monster Moto made its powersports indus- try debut at AIMExpo in October. There, the company unveiled prototypes of three new models that will join the Monster Moto product lineup in 2017. The MMB212 is aimed at teens and adults. The mini bike has a 212cc, 7 hp engine that delivers plenty of low-end torque for adults, the company reported. The MMB105 is a 105cc, 3 hp mini bike that sits on the same chassis as Monster Moto's 80cc bike. And the MME600 is a 600W, 36V electric mini bike that also sits on the 80cc bike's chassis and offers 40-50 minutes of run time on a single charge. "We have up-speced products that we believe will give both a higher dollar amount and higher margin for our dealers," Keechle reported. DEALER PROPOSITION Monster Moto says its products will bring incremental sales and solid margins to Monster Moto targets Generation Z, powersports dealers See Monster Moto, Page 24 Above: A 100,000-square-foot fully air conditioned facility built at the end of an old airport runway in Ruston, Louisiana, houses Monster Moto's assembly operations and warehouse. Right: Monster Moto employs 40-60 staffers at its Ruston, facility, depend- ing on seasonality. MOTORCYCLE On-shoring assembly allows Monster Moto to better control its supply chain, speed up development and offer customization.