Motorcycle industry must face new realities

Change is challenging the motorcycle industry, just as surely as it is the automotive industry.

Some of us embrace change. Others fear it. Some find themselves paralyzed.

And so it is within the business of motorcycling.

Two recent events provide insight -- first, release of very interesting data from J.D. Power, the company best known for its exhaustive automotive research, such as the Initial Quality Study.

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Second, and even more tangible, was this weekend's noticeably smaller, more subdued iteration of the annual Cycle World International Motorcycle Shows Presented by Toyota, held at the Rock Financial Showplace in Novi.

We're all familiar with the process of buying a new car. You do some research, visit a couple of dealers who carry the vehicles that interest you based on features and price, and test-drive them to make your final decision.

If you're buying a motorcycle, it's a bit different. You do some research, visit a couple of dealers who carry the bikes that interest you based on performance and price, sit on them in the showroom, and have to make a purchase decision without ever riding the bike you're going to buy.

Sound frustrating?

It is -- especially given the major point of differentiation between car and bike buyers.

Motorcycle buyers frequently are very interested in performance. As in zero-to-60 times, braking, lap times, horsepower, top speed. Stuff that only the most fanatical car buyer would weigh.

(Quick, how many pistons do your brake calipers have? A bike guy knows the answer, while a car owner scratches his head and says something like, "pistons?")

And yet motorcycle buyers are asked to take these important factors on faith.

And unlike a car with its fully adjustable seats, steering wheel, etc., a bike offers very little opportunity to tailor the location of seat, handlebars, foot pegs, controls, and so on.

Yes, you usually can at least sit on the bike in the dealership (some dealers even discourage this!).

But the bike that feels "just right" for 30 seconds in the showroom can cause discomfort and frustration after 20 minutes on the road -- by which time you're already the owner.

So at the show, you see a lot of test-sitting. Potential buyers can spend a few hours trying the "fit" of bikes representing all of the major brands, and perhaps even ask questions of knowledgeable factory reps.

This saves a lot of running around, and sadly, it represents a more personalized level of attention than you'll get in the typical multi-brand dealership. That's pretty pathetic.

The only reason dealers can get away with this is that the benefits and passion of the motorcycling lifestyle itself make up for the pain of the purchase process.

But it's no wonder to find that overall satisfaction rates with the buying experience are low.

Todd Markusic, senior director of the Powersport Group for J.D. Power, said the company has learned that the ability -- or inability -- to test-ride a bike is a critical factor in buyer satisfaction. "It can be a deal-breaker," he said.

You hear a lot of excuses about why dealers don't allow test-rides: Liability, potential for damage, wildly varying skill levels among riders, etc.

Some brands are definitely better at providing this opportunity than others. Harley-Davidson, for example, has recognized the value to the point of promoting rentals -- you can live with a Harley model for a weekend, maybe try two or three this way, then buy the one that really fits your needs.

I have found some of the European brands such as Triumph, Aprilia and Ducati promoting test ride events.

My Buell dealer, Ray C's Harley-Davidson in Lapeer, encouraged me to test-ride the bike I eventually purchased.

But I have seen multi-line dealers -- these typically are the guys who carry some or all of the Japanese brands -- who won't give you the time of day, let alone a test ride.

And that goes double if you are considering a sport bike.

Which means if you're young, because that's the demographic who loves the "repli-racer" look.

And who needs more help with their purchase decision than young, first-time buyers? Yet they are cut adrift. Again, it's a source of frustration.

Only 38 percent of dealers on average offer a test ride, Markusic said. But that's an average. Only 17 percent of multi-line sport bike dealers off test rides. That's less than half of the national average.

With some of the single, boutique brands, the rate climbs to 80 percent. Those are the guys with satisfied customers.

So how do the multi-line sport bike guys stay in business? I think the answer can be found in Japan, where the factories keep kicking out new bikes -- the life cycle between major makeovers is only about two years, or less than half the life cycle of a typical car or truck. These new bikes offer significant gains in nearly every aspect of performance every time.

Again, that's a big contrast to the automotive world, where a "major change" is typically reflected in a new silhouette, and perhaps another inch of legroom.

The motorcycle enthusiast magazines devote dozens of pages to these mechanical and performance changes, and many buyers are pre-sold before they hit the dealer floor. Where they end up buying that new super-bike in spite of the dealership experience, not because of it!

With the economy imposing significant new factors in the latter part of 2008 and heading into 2009, will this dynamic change?

What if the factories decide it's too expensive to pour R&D money into their bikes?

Given the perceptible drop off in traffic at this year's motorcycle show, smart dealers had better take note. Bikes may not sell themselves for much longer!