National Motorcycle Dealers Association Newsletter March 2013

National Motorcycle Dealers Association Newsletter March 2013

‘We represent, you benefit’ Dear Colleague, The National Motorcycle Dealers Association Newsletter contains information on the market plus other factors facing the sector. If you have any queries or questions concerning any of the issues raised in this month’s update, please do not hesitate to contact us here at the NMDA on the contact details provided below. I hope you enjoy this latest update. Steve Latham, Head of NMDA Email: [email protected]

IN THIS ISSUE:

MOTOCYCLESALES SUFFER IN FEBRUARY NMDA MEMBERS ‘DEAL OF THE MONTH’ – SAVE MONEY & INCREASE TURNOVER SHOPTUNER TESTIMONIAL ‘THINK DRIVERS URGED TO TAKE LONGER TO LOOK FOR MOTORCYCLISTS NMDA & ETRA LOBBYING IN EUROPE

Motorcycle sales suffer in February The latest new motorcycle and scooter figures show last month sales overall were down 4.6% against February 2012. Under 50cc scooter sales were down 6.1% in February, while all over 50cc motorcycle sales have decreased by 4.2%. Whilst it is disappointing to see motorcycle sales decline last month, February tends to report a low market in unit numbers, particularly in retail sales, as consumers wait for the plate change on the 1 March. The majority of sectors reported a decrease in sales in February with the exception of the touring and trail/enduro bikes which recorded an increase in sales of 53.4% and 35.2% respectively. During 2012 125cc scooters saw a huge increase in popularity as sales soared. However this sector has seen a slowdown in demand with sales down 3% last month and 8.2% year to date. Low cost brands saw an increase in sales during February with Lexmoto and Direct Bikes moving into 6th and 7th position. Budget brands tend to be less effected by the plate change as their consumers tend to be less concerned about the number plate lowering residual values in the future. The NMDA are interested to see if the plate change in March will increase the demand for new motorcycles.

NMDA members ‘Deal of the Month’ – save money & increase turnover

Is your display of bikes, clothing and kit working hard to make money for you?

The new riding season is here, the excitement is palpable – new models, new kit, just waiting to tempt your customers into spending. So are you ready, really ready, to make sure that as much of that spend as possible comes into your till? Visual Merchandising - the key to higher sales and more profit… The Retail Giants know that a store’s visual impression makes the difference between a sale and no sale and influences how much a customer will spend. They also know that over 30% of all purchases are made on impulse. That’s why they invest heavily in Visual Merchandising. Find out how your store can earn you more money… ShopTuner specialise in Visual Merchandising for motorcycle dealers. We look at a store through customer eyes, pin-point the sales turn-offs and help you to overcome them. One of our clients enjoyed a 66% increase in new bike sales after spending less than a hundred quid! Save and earn - our special offer to you as an NMDA (MRA) Member… Book a retail display ‘health check’ that will review the profit generating effectiveness of:

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Your website – the impression it creates and its usability The overall impression that your dealership gives to customers Your window display Your bike display Your clothing and accessory display

NMDA (MRA) members booking a health check before 30th April 2013 will save £125 on the normal price of this exceptional service paying just £250 plus VAT; an affordable investment that will be repaid many times over! Check our website www.shoptuner.co.uk for more information on the ShopTuner advantage and to see what NMDA Committee Member Philip Youles thought of his recent health check. You can also download our free ‘Ten Retail Commandments’ - 10 top tips for retail sales staff. To book your health check call Geoff Selvidge on 07817 615677 or e/m [email protected]

SHOPTUNER testimonial By: Philip Youles, Youles Motorcycles, Blackburn As a member of the MDA committee I was offered the opportunity to take part in a ShopTuner dealer visit. Youles Motorcycles, Blackburn was opened in August 2005 as a Triumph world store. The building had been occupied by the now defunct Caledonia motor group and benefitted from a complete refurbishment. Bringing the store up to Triumph’s exacting standards was a big investment and definitely a defining moment in my businesses growth. It goes without saying that we have tried to protect and improve that investment where ever possible. Inevitably the passage of time has allowed one or two things to slip and although most people don’t take criticism lightly I was keen to get that external perspective. We do try and look from the outside inwards but maybe somebody else would spot something different. Look at it from a customer’s perspective and give us the holy grail of feedback.

Geoff Selvidge of ShopTuner duly contacted me and an appointment was made. On the day I made sure I was on site and didn’t pre warn the staff that Geoff was expected. I had positioned myself in the showroom office where I have a clear view of showroom movements and Geoff arrived at the allotted time. Geoff was welcomed by Dave and offered a coffee and we had a chat in the office. Geoff although here to criticize was by no means officious. After all he is working for you and you wouldn’t put yourself through the process if you didn’t want to improve. Geoff asked a few questions about our website and general background information. Geoff then had a wander around the store taking a number of pictures and basically looking like an estate agent [thanks Philip!]. We had another chat where he made some observations all of which I have to say were spot on. Years ago a friend who ran a very successful car dealership described these things as cloaks of invisibility. That is to say we are so used to seeing these discrepancies that we just become oblivious to them. Funny really because I am usually quite good at spotting them, particularly when looking at other peoples businesses. The hairdressers with weeds around the front door, the restaurant with a dirty entrance, Stickers in the window of used car dealership, that have been there for years. Triumph has just run there connected course and they called them White Elephants. Geoff isn’t just looking at for these housekeeping issues though. He is looking for how the clothing is displayed is it sized, is it sectioned. Where is the clothing positioned? Are the bikes priced clearly, how the shop feels. All of this is invaluable information and helps you set the shop up in a more customer focused manner. About a week after the visit the full report dropped into my email and although I wasn’t expecting a great long list of improvements I did receive a number of quite logical suggestions. A couple of things we had already noted and were in the process of being actioned. Notably the woodwork could do with a coat of looking at particularly round the front door also our totem has decided to go green with the damp Blackburn air. Some other useful suggestions about the location of our accessory display and how to ticket the bikes were also very useful. Is it worth the money? Well yes in my opinion if only to be told politely and with no axe to grind. As dealers we are all keen to maximise the amount of stuff we sell. The true impression we give is difficult to judge and the whole process was done with the view to tweaking or tuning the business to meet the needs of the customer which above all is what we are here to do. So yes! It does what it says on the tin.

‘THINK’ drivers urged to take longer to look for motorcyclists

Car drivers are being urged to see the person behind the helmet and take longer to look for motorcyclists in the latest THINK! motorcycle safety campaign, launched today by Road Safety Minister Stephen Hammond. The £1.3m campaign, timed to coincide with the anticipated Spring increase in motorcyclists' return to the roads, encourages drivers to take longer to look for motorcyclists and think about the biker, not just the bike. Stephen Hammond said: "Motorcyclists account for just 1% of traffic but 19% of deaths on Britain's roads and 30 bikers are killed or injured in accidents at junctions every day. I am

determined to reduce this terrible toll. "That is why we are funding this THINK! campaign to remind drivers to look out for motorcyclists - particularly at junctions - and to see the person behind the helmet not just a motorbike." The campaign was informed by accident statistics, which show that motorists pulling out in front of motorcyclists is a major cause of deaths and injuries; and wider research showing that drivers are more likely to notice motorcyclists on the roads if they know a biker themselves. In 2011, 5,609 motorcyclists were killed or seriously injured with 74% of these occurring in accidents involving another vehicle. 69% of these casualties happened at junctions. The number of accidents increases significantly during March and April as improved weather encourages more motorcyclists onto the road. The THINK! campaign targeting motorists will run from March to May with messages delivered through radio advertising and in petrol stations when the call to action is more closely linked to the behaviour THINK! is seeking to change. Wider awareness will be generated through TV video on demand advertising, targeting younger drivers in particular. NMDA & ETRA lobbying in Europe

NMDA along with ETRA (European Two-wheeled Retailers Association) lobbies on your behalf to ensure any EU proposed legislation does not disadvantage NMDA members. Below is an update of our position on known proposals: 1. Type Approval; Lobbying has minimised changes to ABS braking fitted to all new motorcycles over 125cc and the introduction of Euro 5 engines effective from Jan 2016. 2. Roadworthiness Testing; Plans to introduce MOT type testing in EU countries that do not currently test bikes has been dropped from pressure from France. The UK and other countries like Italy and Germany will continue with their own current MOT type annual test. It is likely the EU will want to re-introduce this directive in 2016 after the new euro 5 engines are fitted; thereby checking emissions are being monitored. 3. 3-DLD Driving Licence Directive; This has now been implemented in all EU countries as from January this year, Although all states have mandated the same power/cc breaks between motorcycle models for training and testing, each country has been able to adopt which age category suits them. Therefore you can still ride from age 14 in France but in the UK and a few other states have we have the highest age of 24 for ‘directentry’ learning on larger machines. As always the UK’s DSA have gold-plated our regulations. 4. Protective Clothing; It is possible the EU may wish to and enforce safety standards of motorcycle protective clothing to protect EU manufacturers thereby ensuring imported clothing from the Far East meets these safety standards. ETRA is in favour of this as long as the legislation does not enforce riders to wear protective clothing, other than helmets. In the Mediterranean countries it is impractical due to temperatures to wear this clothing in the summer. 5. Urban Mobility Policy; Motorcycling makes greener, cleaner, cheaper and less

congested transport solutions in urban areas, therefore creation of an EU structure policy makes sense and as such ETRA will assist and promote this policy in its development. 6. EU Product Labelling; This would like to be introduced in the near future to assist customers select motorcycles with low Co2 & high MPG. 7. Lower VAT on Motorcycle Repairs; 10 of the 23 EU countries have now adopted a 6% vat rate on manual work to assist lower un-employment levels.