National Motorcycle Dealers Association Newsletter
May 2013
// ‘We represent, you benefit’
Dear Colleague,
The National Motorcycle Dealers Association Newsletter contains information on the market plus other issues facing the sector.
If you have any queries or questions concerning any of the items 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:
IN THIS ISSUE:
/ · WHAT DO MOTORCYCLE MANUFACTURERS DO TO ‘KICK-START’ THE MARKET?· THE NMDA ‘DEALER ATTITUDE SURVEY’ COMES OF AGE
· NO REAL BELIEF IN MOTORCYCLING FROM THE MINISTER
· MOTORCYLCE THEFT AND RECOVERY 2006 - 2012
· MOTORCYCLE INDUSTRY CALLS FOR REBALANCED ROAD SAFETY EXPENDITURE AS THE NEED FOR GREATER AWARENESS OF VULNERABLE ROAD USERS IS HIGHLIGHTED
· A UNIQUE OFFER FOR NMDA MEMBERS
· EMAIL ALERT
What do Motorcycle manufacturers do to ‘Kick-start’ the market?
Sales of motorcycles continue to be a cause of concern for dealers who are now waiting in hope for a surge in sales. In April the market was still depressed with a 9% fall against April 2012 and January to March just as poor, down 10%.
Over the last few months the hopes of selling more 125cc commuter bikes has subsided and has decreased by 6.3% in April and down 8.1% year-to-date. Sectors saw a fall with the exception of touring, trail/enduro and adventure sport. These low volume sectors recorded a 30.7% increase this month in touring sales, in total 62 more machines were sold.
With sales figures so low, there is a growing concern for businesses to stay afloat and the risk that manufacturers may withdraw from the UK. A more strategic approach will need to be put in place to get consumers back into motorcycle showrooms. Promotions such as free service packages and five year 0% finance offers within the car manufacturers industry have proved successful with consumers resulting in an 8.9% increase in sales recorded in so far in 2013.
In order to see a higher turnover, motorcycle manufacturers need to introduce more customer friendly offers to their forecourts that would boost sales and profit.
Market comment by Stephen Latham, Head of the NMDA
The NMDA ‘Dealer Attitude Survey’ comes of age
It has now been 3 years since the NMDA (formally MRA) started asking motorcycle dealers in the UK for their confidential opinions of each of the motorcycle brands they are franchised to sell. Over the three years there has been six surveys covering Spring and Autumn and different circumstances have had an impact on the opinion of dealers to both praise and criticise motorcycle manufactures for a range of issues.
Some 21% of the UK’s franchised dealers took part in the survey this month and voiced their opinions of who they think are coming out on top in the in the motorcycle manufacturing industry.
With the continual fall in motorcycle sales, dealers are becoming concerned about the profitability of their dealerships. Market conditions remain difficult, and dealer/manufacturer relationships are an important component of the solution, according to the National Motorcycle Dealers Association (NMDA) Dealer Attitude Survey- Spring 2013 results.
The NMDA Spring 2013 Motorcycle Dealer Attitude Survey shows that there has been a small fall in the overall value of the franchise held by dealers. When asked to rate the value of holding their motorcycle franchise, the all dealer average decreased from 6.4 to 6.1 out of a total possible score of 10. Triumph, KTM, Kawasaki and Ducati were rated as the top franchises. Ducati ranked at 4th position which was a big leap forward from their 10th ranking in the last survey. The least valued franchises by respondents are Suzuki, Yamaha and Piaggio Group.
When questioned about the partnership they have with their manufacturer, the average stayed the same at 3.6(72%) out of a total possible score of 5.0. However, 60% of franchises recorded a rating on or above the average mark. Kawasaki, KTM, Triumph & BMW rated their manufacturer partnership the highest.
In the current economic climate, it is unsurprising that profits and profitability ratings have not improved since the last two surveys staying at 2.8 (56%). When questioned about the future profitability of their businesses, the score fell from 3.1 down to 3.0 (60%). The brands that were optimistic about future profit improvements were Honda, Ducati, KTM & Triumph.
Sales incentive programmes are an essential part of successful marketing of a brand to drive demand. In the spring survey the average score fell from 3.4 down to 3.0 (60%) with the majority of brands showing a decline. The brands that improved their score since the last survey were Honda, Kawasaki and KTM.
Another indicator in brand demand is if the motorcycle has a good value for price against other brands. The average score here was 3.2(64%). Honda came second with a score of 3.9(78%), while dealers gave the lowest score to Yamaha at 2.0(40%). Frequency of introducing new models is often seen as a reason for increasing sales so it was surprising to see Suzuki and Yamaha scoring the lowest at 2.4 & 1.9 against an average rating of 3.4 (68%).
A surprising result came from the question about the value of the get-on programme, which is designed to introduce new riders into the motorbike world. The average score was 1.8(36%), and the top four brands were Harley, Ducati, Honda and Triumph and yet, only Honda has a low powered entry level machine to offer new motorcyclists.
The average retail labour rate charged to customers has fallen slightly from £53.90 down to £53.10, indicating the pressure on workshops to chase business and utilise their assets and personnel.
With motorcycle dealers contending with falling sales and falling margins, it is no real surprise to see a slight decline in values in this spring survey particularly with the delayed and long winter affecting sales inquiry levels.
Last year sales of lower value 125cc motorcycles increased while sales of larger and more profitable motorcycles declined. In the first 3 months of 2013 sales of the light weight 125cc bikes have been slower. There has also been a stabilising of sales in the heavy weight machines over 1000cc showing that this established market with their more mature riders has been less affected by the financial pressures on younger buyers.
This Survey shows that dealers who have improved communication channels with their manufacturer tend to give higher ratings, and also brands that have an individual image and style seem to have more demand in these difficult times. It is important to remember that motorcycle dealers have the same aims and aspirations as the motorcycle manufacturers. Both want to sell more motorcycles and improve their profitably.
NMDA members can obtain a free full and details copy of this survey by emailing and non-members can gain more information about the NMDA by calling 01788 538332
No real belief in motorcycling from the Minister
Steve Baker MP asks the Secretary of State for Transport if he will take steps to promote motorcycling in his transport policy framework as a means of reducing congestion and emissions. [151813]
Stephen Hammond: replies; The Government is neutral on whether or not people should take up motorcycling. We recognise that it is a valid form of transport, but we are also aware that motorcyclists account for just 1% of the traffic on our roads, but in 2012, they accounted for 19% of deaths. Reducing the number of motorcyclists killed is a key priority and we aim to do this by creating better and safer conditions for those who choose to ride.
22 April 2013 : Column 594W Source:House of Commons - Commons Written Answers
Motorcycle Theft and Recovery 2006 – 2012
The figures show theft has steadily declined, and we hope that with the introduction of the new ‘Master’ marked identification this figure will continue to fall.
Source: Police National Computer (PNC) and data supplied by Retain group Ltd and analysed by the RMI on behalf of the National Motorcycle Retailers Association
All registered motorcycles, scooters and quads
Year / Stolen / Recovered / Recovery Rate
2006 / 26608 / 12352 / 46.42%
2007 / 27348 / 12730 / 46.55%
2008 / 25961 / 11514 / 44.35%
2009 / 25893 / 10939 / 42.25%
2010 / 21928 / 8794 / 40.10%
2011 / 21933 / 8942 / 40.77%
2012 / 21160 / 8786 / 41.52%
2797 / 1157 / 41.37%
2013 YTD / Stolen / Recovered / Recovery Rate
January / 1412 / 601 / 42.56%
February / 1385 / 556 / 40.14%
Motorcycle Industry calls for rebalanced road safety expenditure as the need for greater awareness of vulnerable road users is highlighted
With the recent Parliamentary debate around road safety issues, the Motor Cycle Industry (MCI & NMDA) are calling for a greater focus on educating motorists about the importance of vulnerable road users. The debate is in advance of the publication of a Government Green Paper on young drivers, which is expected soon.
Government road safety figures highlight disturbing accident statistics surrounding young drivers: 412 people were killed in accidents involving young car drivers aged 17-24 years, accounting for 22% of all road deaths. Nearly a fifth (1,552) of all car occupants killed or seriously injured were young car drivers aged 17-24 years. (DFT, Reported Road Casualties in Great Britain).
The accident risk for drivers of all ages is halved after the first six months of passing a test. The post-test period is a crucial time, putting all road users at risk. It would therefore be beneficial to discuss the topic of vulnerable road users during the driving test to raise awareness among new drivers. This is something the MCI & NMDA has supported in the past.
The two associations are also concerned about the balance of road safety expenditure between vulnerable modes of transport. It was announced this month, that so far this year, £1.275million has been spent for motorcycle safety under the ‘Think!’ campaign, compared to £40million committed to safer roads for cycling. This despite ministers stating that motorcycle safety is a ‘key priority’ in answer to Parliamentary Questions. The motorcycle industry is therefore calling for a rebalancing of road safety expenditure to invest in reducing vulnerability among riders. It is also important that given an increasing number of people using motorcycles for commuting to work, the DFT’s forthcoming Transport Policy Framework needs to recognise and support motorcycling.
The MCI is also highlighting research that shows certain classes of other road users are often not seen by car drivers, unless they personally know someone who drives a similar vehicle, or have had an experience of driving one themselves. Therefore, the Government should take the opportunity to review driving tests and incorporate the motorcycle riding experience into a car driving test. This would also be highly beneficial for cyclists.
A unique offer for NMDA members
Make your dealership stand out and earn more money – NMDA tells you how!
The key to a successful business in the competitive motorcycle retailing industry is having a well organised and merchandised store. Presentation and first impressions are everything in order to sell more products and increase profits.
The NMDA (National Motorcycle Dealer Association) can offer you a ‘retail health check’ in just two easy steps.
1. The NMDA will look at your motorcycle dealership through the eyes of the customers and highlight the aspects that are working against you.
2. The NMDA will then recommend the steps you need to consider correcting them, and the best part is many of those recommendations will cost you nothing but time!
The result - higher levels in customer spending which means more profit for you.
This ‘retail health check’ is brought to you by ShopTuner. As an NMDA member you can take advantage of the special reduced price of £250 plus VAT by booking a health check in May/June (normal price £475 plus VAT).
ShopTuner specialise in visual merchandising for motorcycle dealers. They help dealers to organise their stores to maximise their sales and profit potential.
Before the ‘retail health check’ After following ShopTuner recommendations
NMDA member and Triumph Dealer, Philip Youles, recently had a ShopTuner ‘retail health check’ at his Blackburn store and commented on how many minor details made a difference in improving the overall appeal and interest in their dealership.
For more details and to make a booking,
Contact: or tel: 01628 631690
ATTENTION MOTORCYCLE MEMBERS!
We are often asked why our newsletter is not distributed to more of your staff members, and therefore would like to request you to submit their email addresses to if they would like to keep up-to-date with all the latest news from NMDA.