6 Facts About Buying A New Motorcycle | RETAIL CONFIDENTIAL

One of the most exciting times of the year for those of us in the motorcycle industry is the release of the new models. It's a great time of year because we get to look ahead to the selling season and think about the great new product we have to sell. Amid the excitement, though, those of us working at the retail level have a few challenges.

1. It doesn't happen all at once. In years past, the dealer meetings, where the dealer body gets the first glimpse of the models for the new year, would occur in a short time span, and the models shown there would be nearly all the new stuff. Now the product cycles are longer and the release of information takes place more or less all year.

2. It's not always, well, exciting. Sometimes the new product amounts to "bold new graphics." When we hear that, we think about how any given model sold the year before. If it tanked, then we'll have another year of a slow seller—just in another color.

3. Inventory matters. In our utopia, the sales floor is empty with plenty of room for new inventory at the model changeover, but more often than not we are sitting on slower-selling models or we are faced with the results of over-ordering in anticipation of a great year that promised higher unit sales.

4. There are good deals to be had. We need to move inventory. We also know customers want the latest and greatest, while getting the best deals. The OEMs offer rebates or low-interest-rate incentives to help dealers move leftover inventory, but often this isn't enough to get you to buy last year's bikes, especially if the new model received a serious makeover. While some customers are more interested in saving money than having the latest, the savings need to be large enough to pique interest.

5. We try to get ahead of the game. Before the arrival of the new models, we start discounting. First with manufacturer rebates and a slight reduction in asking price. If this isn't enough we may match manufacturers' rebates or offer more for your trade-in. We may offer incentives of free accessories or free gear. If this doesn't do the trick, we may start selling a little above cost or at cost. Keep in mind, if a model is difficult to sell, there is a reason for it. It's usually a model that goes relatively unchanged year to year or is unpopular to begin with. Popular models usually sell with ease; as leftovers, they move with nothing more than a nudge.

6. Just because a new model has been announced doesn't mean we have it. Delays in manufacturing and distribution are common. You might have read all the stories about a particular new model in October, but we might not have a reasonable inventory until January or February. Please be patient. We're as excited to see the new bikes as you are!

Jeff Maddox is the sales manager for a multi-line dealership in the Midwest. Questions for him? Email us at mcmail@bonniercorp.com with "Retail Confidential" in the subject line.