WEBVTT X-TIMESTAMP-MAP=MPEGTS:90000,LOCAL:00:00:00.000 1 00:00:09.400 --> 00:00:13.300 welcome to episode 109 of the lowdown radio show presented by a 2 00:00:13.300 --> 00:00:18.000 TV ryder.com I'm Neil Graham everybody and I mean everybody has 3 00:00:18.000 --> 00:00:20.899 an opinion on a Harley-Davidson the company whose stock not so 4 00:00:20.899 --> 00:00:23.500 many years ago was a safer bet than gold has fallen upon 5 00:00:23.500 --> 00:00:26.699 challenging times and all this from a company according to 6 00:00:26.699 --> 00:00:30.100 analyst Michael Eric the in its Heyday turned a profit of nearly 7 00:00:30.100 --> 00:00:34.399 30% on each motorcycle when the industry average is near the 8 00:00:34.399 --> 00:00:38.000 mid-single digits in the fat years Harley-Davidson was indeed a 9 00:00:38.000 --> 00:00:42.299 license to print money no more past Harley CEOs of tried 10 00:00:42.299 --> 00:00:45.100 seemingly everything to break the ship there's been the hardwire the 11 00:00:45.100 --> 00:00:49.600 rewire and the string myself up with wire and as much fun as 12 00:00:49.600 --> 00:00:52.399 speculating on the future of Harley is this week be speak to 13 00:00:52.399 --> 00:00:57.100 someone with skin in the game a Harley dealer George gato owns 14 00:00:57.100 --> 00:01:00.200 Three Rivers Harley Davidson near Pittsburgh he also owns Gatto 15 00:01:00.200 --> 00:01:04.700 cycle of a Honda Yamaha Suzuki Kawasaki CFMOTO and Royal Enfield 16 00:01:04.700 --> 00:01:09.799 dealership he's a busy man. with a bad back who knows of what 17 00:01:09.799 --> 00:01:14.799 he speaks. Gatto Cycles since 1964 who who 18 00:01:14.799 --> 00:01:19.099 started the business my mom and dad my dad's George senior and my 19 00:01:19.099 --> 00:01:23.900 mother Loretta they were a great partnership and what do they sell 20 00:01:23.900 --> 00:01:31.099 in the early days George IV cheats my dad started with Suzuki 64 and 21 00:01:31.099 --> 00:01:33.900 he can never get the big lines that he wanted so he had a whole 22 00:01:33.900 --> 00:01:37.500 bunch of new lines and has come and gone I will talk to a Mako 23 00:01:37.500 --> 00:01:47.599 hidaka at Bridgestone at 1:20 yeah yeah I remember. 24 00:01:48.799 --> 00:01:55.000 like the Japanese in in the Japanese invasion Japanese came in 25 00:01:55.000 --> 00:01:58.500 and just wiped out all the British grants and that was in a fairly 26 00:01:58.500 --> 00:02:02.099 early in my career I was I was really young and then you know he 27 00:02:02.099 --> 00:02:13.800 had people talk to make a Hodaka those brands for me I had a Hodaka 28 00:02:13.800 --> 00:02:19.099 Anna Bridgestone combat wombat and they said that they had the best 29 00:02:19.099 --> 00:02:26.800 names didn't they had a great YouTube videos that somebody did 30 00:02:26.800 --> 00:02:29.500 on some of those Brands and it brings back a lot of great 31 00:02:29.500 --> 00:02:32.300 memories I think Harley-Davidson should have a super rare I think 32 00:02:32.300 --> 00:02:35.900 that would be fine I bet it would do well that's that's the thing I 33 00:02:35.900 --> 00:02:39.400 don't know how what are your memories of your first involvement 34 00:02:39.400 --> 00:02:44.500 in your parents business what is a kid so we are businesses on. 35 00:02:48.699 --> 00:02:51.500 lived on one side of the bridge in the business long outside fridge 36 00:02:51.500 --> 00:03:02.000 to ride my little 20in bicycle across the bridge and his scent 37 00:03:02.000 --> 00:03:08.000 all over the place and we had the vinyl tile coming in with the red 38 00:03:08.000 --> 00:03:11.900 Chopper ads and solvent having to wipe while spots up and then he 39 00:03:11.900 --> 00:03:15.699 had an area that has real small Limestone the bikes with leak oil 40 00:03:15.699 --> 00:03:26.000 and Limestone of limestone parking lot but basically like cleaning 41 00:03:26.000 --> 00:03:38.300 the cat box isn't it whatever I need to do you know my dad taught 42 00:03:38.300 --> 00:03:40.900 us how to do that stuff and to this day I know I can wire I can 43 00:03:40.900 --> 00:03:45.599 climb like you plaster it's all because of grown up or we we did 44 00:03:45.599 --> 00:03:48.500 that stuff ourselves. can you really did give me you 45 00:03:48.500 --> 00:03:51.699 grew up in a dealership didn't you grow up in the dealership when I 46 00:03:51.699 --> 00:03:54.400 was a real little my mom had like a love so nice to sleep on the 47 00:03:54.400 --> 00:03:58.900 left side go empty the garbage cans and no cleanup put tools away 48 00:03:58.900 --> 00:04:01.900 Stockwell shelves you know that kind of stuff you know what parts 49 00:04:01.900 --> 00:04:06.099 I think I was in like six seventh grade we had cards there was a 50 00:04:06.099 --> 00:04:14.800 phone number across every brand table but just have different 51 00:04:14.800 --> 00:04:24.199 colored index cards yellow and try and start with I have 10 of these 52 00:04:24.199 --> 00:04:27.300 on stock every time you sell one you put the date and how many you 53 00:04:27.300 --> 00:04:32.699 sold how many were left. That was our inventory control so when did 54 00:04:32.699 --> 00:04:36.199 you when do your parents begin to phase out of the business and when 55 00:04:36.199 --> 00:04:42.300 did you serve come into a more managerial position so my dad my 56 00:04:42.300 --> 00:04:46.100 dad my dad I love him to death he's Italian he's got a camper. 57 00:04:46.899 --> 00:04:53.000 I don't I don't I don't like tempers I don't like stripe I 58 00:04:53.000 --> 00:05:00.399 don't like you know, bad I I just I don't like it so when I was in 59 00:05:00.399 --> 00:05:04.100 probably 9th grade and he started to bicycles that was the bicycle 60 00:05:04.100 --> 00:05:08.100 boom of the seventies and brought in these these these 10 speeds 61 00:05:08.100 --> 00:05:13.399 without you and I started to work bicycle shop because it was like 62 00:05:13.399 --> 00:05:18.800 my own gig and I actually ran that too high school and then I ran it 63 00:05:18.800 --> 00:05:21.300 when I went to college because I want to Branch Campus of Penn 64 00:05:21.300 --> 00:05:26.500 State and then when I got out of college was wanted bicycles met my 65 00:05:26.500 --> 00:05:28.899 wife is a physical therapist you know it all fits physical 66 00:05:28.899 --> 00:05:37.000 therapist bicycles year when it's the problem was I couldn't figure 67 00:05:37.000 --> 00:05:40.300 out how to make money with my wife is a PT and she's making three 68 00:05:40.300 --> 00:05:41.399 times what I was making. 69 00:05:46.899 --> 00:05:52.600 and then it was probably the mid-2000s there was a company in 70 00:05:52.600 --> 00:05:54.899 the bicycle District call Catalyst Communications they were big 71 00:05:54.899 --> 00:05:58.399 marketing company and they just fixing called super sale they were 72 00:05:58.399 --> 00:06:02.100 wonderful people to do business with and what I saw in the early 73 00:06:02.100 --> 00:06:05.699 2000s was the bicycle business was consolidating the brands are going 74 00:06:05.699 --> 00:06:12.399 bankrupt three times and went bankrupt all these companies were 75 00:06:12.399 --> 00:06:16.100 going under in the channels of distribution will change it and 76 00:06:16.100 --> 00:06:19.000 use a dealer you're looking at you know Ballinger oh how much are 77 00:06:19.000 --> 00:06:22.000 dealer only comments next thing you saw him at Walmart and they're 78 00:06:22.000 --> 00:06:26.100 selling them online and I'm channels are drying up and I just 79 00:06:26.100 --> 00:06:30.500 didn't see a future and a bicycle business so mid-2000s FL my 80 00:06:30.500 --> 00:06:39.600 parents and it was about that time my dad he was 55 that's roll when 81 00:06:39.600 --> 00:06:42.500 he backed out of the business at 55 years old and my mom needs help 82 00:06:42.500 --> 00:06:45.199 running it so I was wanting bicycles and helping the 83 00:06:45.199 --> 00:06:48.000 motorcycles. call we're making a lot of money 84 00:06:48.000 --> 00:06:51.000 in Harley Davidson and we weren't making a lot of money with 85 00:06:51.000 --> 00:06:53.600 bicycles although I love that business and I love the people I 86 00:06:53.600 --> 00:06:57.399 still have a lot of friends there today I just didn't see a future 87 00:06:57.399 --> 00:07:04.100 in it, so am I one by one closed or sold bicycle stores and I 88 00:07:04.100 --> 00:07:07.100 bought a second Harley-Davidson dealership in 2007 in Pittsburgh 89 00:07:07.100 --> 00:07:12.399 and that's our only copy store right now we are free and I will 90 00:07:12.399 --> 00:07:15.399 consolidate at three into one big one one guy asked you about the 91 00:07:15.399 --> 00:07:20.000 Harley-Davidson think so cuz it be because it you know you in 2007 is 92 00:07:20.000 --> 00:07:23.699 is 2007 when you Consolidated know that's why I bought the second 93 00:07:23.699 --> 00:07:29.899 Harley store about the second two years ago so going back to 2007 94 00:07:29.899 --> 00:07:32.800 which is very close to the peak for Harley-Davidson in terms of 95 00:07:32.800 --> 00:07:38.500 sales selling 340i the numbers very bitter about 250,000 bikes 96 00:07:38.500 --> 00:07:42.699 Sienna per year and one of the things that are said an analyst at 97 00:07:42.699 --> 00:07:46.100 joins us on his podcast Michael Eric and he says that the. 98 00:07:46.800 --> 00:07:49.899 Harley-Davidson at that point was the Envy of the motorcycle 99 00:07:49.899 --> 00:07:53.399 industry because Harley-Davidson would make up to 30% on a 100 00:07:53.399 --> 00:07:58.100 motorcycle when the industry average would be mid single-digit 101 00:07:58.100 --> 00:08:02.100 the Harley was was going great guns take me to the sales floor in 102 00:08:02.100 --> 00:08:06.100 those in those heady days was it like back then it was it was 103 00:08:06.100 --> 00:08:11.399 Fantasyland I mean they were more people to buy Harley-Davidson 104 00:08:11.399 --> 00:08:18.100 product and Harley could not wear a production quick enough and you 105 00:08:18.100 --> 00:08:21.199 know there was a line of people to buy bikes I mean you get a bike 106 00:08:21.199 --> 00:08:25.500 and you'd be lucky to even get one. Cancel put them it was gone 107 00:08:25.500 --> 00:08:28.600 and you didn't see our ends you didn't need these then I'll get me 108 00:08:28.600 --> 00:08:31.300 the sales process it was just people lined up to buy the 109 00:08:31.300 --> 00:08:36.200 vehicles and then all the time that you know where you actually 110 00:08:36.200 --> 00:08:40.200 had to have sales people that could sell and they can work a CRM 111 00:08:40.200 --> 00:08:43.399 and then take people to the process and then you got the 112 00:08:43.399 --> 00:08:46.399 jochen zeitz here's what that were just just the most horrendous. 113 00:08:46.799 --> 00:08:52.299 yours will get to that we'll get to that in a minute but what's the 114 00:08:52.299 --> 00:08:55.500 transition from this boom work but really what you said that you know 115 00:08:55.500 --> 00:09:00.200 if this person to guy Aiden by a guy be was ready to take it. 116 00:09:01.000 --> 00:09:04.899 did you feel the transition coming did you feel the company slowing 117 00:09:04.899 --> 00:09:09.500 down or was it did it feel like it could never end. They told us it 118 00:09:09.500 --> 00:09:14.700 was going to end of the day we're very clear about it with Harley up 119 00:09:14.700 --> 00:09:18.700 until the last year until the Jay-Z years the relationship with 120 00:09:18.700 --> 00:09:22.600 the motor company was just incredible I mean you can have 121 00:09:22.600 --> 00:09:25.899 open conversations with the CEO so anytime you want to have a 122 00:09:25.899 --> 00:09:29.600 conversation so you as a dealer you could pick up the phone and 123 00:09:29.600 --> 00:09:39.200 call to see you do business and some people say it was a family 124 00:09:39.200 --> 00:09:46.299 business Matt would my Kennedy I mean I got to be great friends 125 00:09:46.299 --> 00:09:51.200 with these guys and we can always agree on everything but you could 126 00:09:51.200 --> 00:09:56.799 talk it out so you can have. that'll change to no liquid Jay-Z 127 00:09:56.799 --> 00:10:01.100 a bunch of different eras of Harley-Davidson of course this 128 00:10:01.100 --> 00:10:04.200 area know every CEO comes in and they have their vision for the 129 00:10:04.200 --> 00:10:07.600 company and they have to keep you happy that have to keep 130 00:10:07.600 --> 00:10:11.100 shareholders happy and it seems at least from the outside almost like 131 00:10:11.100 --> 00:10:13.000 an impossible task I know you mentioned. 132 00:10:14.600 --> 00:10:18.600 imagine Matt levatich who had the more roads to Harley-Davidson is 133 00:10:18.600 --> 00:10:23.000 he called it where he envisioned a really broad portfolio of a bikes 134 00:10:23.000 --> 00:10:26.200 and I should mention here that you also you're not just a Harley guy 135 00:10:26.200 --> 00:10:29.500 because you view so bicycles but you also have a another dealership 136 00:10:29.500 --> 00:10:33.100 that has the four major Japanese brands plus CFMOTO in a Royal 137 00:10:33.100 --> 00:10:40.299 Enfield so you're all over the place should you need one and 138 00:10:40.299 --> 00:10:45.399 you're on the river if she mentioned and then after after 11 139 00:10:45.399 --> 00:10:49.600 at was ducking sites who was his idea was to focus on the 140 00:10:49.600 --> 00:10:52.700 high-margin but made the most profit to reduce production. 141 00:10:54.399 --> 00:10:57.500 I mean where do you sit amid all this cuz those seem to me in the 142 00:10:57.500 --> 00:11:00.500 outside looked very should have opposed views of of of 143 00:11:00.500 --> 00:11:06.899 Harley-Davidson what's your take on that of those two guys it was 144 00:11:06.899 --> 00:11:13.299 very similar but they knew that the Baby Boomers and they showed a 145 00:11:13.299 --> 00:11:16.299 statistically the Baby Boomers and number of baby checked out I'll 146 00:11:16.299 --> 00:11:22.899 back up they showed us data that showed support certain ages in 147 00:11:22.899 --> 00:11:26.700 their lifespan when they buy Harley-Davidson when you're too 148 00:11:26.700 --> 00:11:29.100 young to be spending money on College of spending money on your 149 00:11:29.100 --> 00:11:33.100 first house your first car furniture that then you can and 150 00:11:33.100 --> 00:11:36.399 then you have to get married your kids know the money by Harley and 151 00:11:36.399 --> 00:11:39.299 that that that after the kids are going out a house that's the pink 152 00:11:39.299 --> 00:11:42.899 ears by Harley-Davidson up until you're probably in your seventies 153 00:11:42.899 --> 00:11:49.500 when you're not riding anymore than its 10. So you been on. 154 00:11:54.299 --> 00:12:02.000 did we think it would it will change as quick as a dead and I'll 155 00:12:02.000 --> 00:12:05.799 probably not a good time to go to stay forever we knew that was 156 00:12:05.799 --> 00:12:09.899 coming so you know I really like Matt I like a lot of what math did 157 00:12:09.899 --> 00:12:14.899 my understanding was the board was not happy with the numbers and the 158 00:12:14.899 --> 00:12:21.700 thing pushed Matt out now who led the board board they told us they 159 00:12:21.700 --> 00:12:26.200 were going to hire a new CEO yocan came in as a interim president CEO 160 00:12:26.200 --> 00:12:34.299 problem was he stayed and he's not a motorcycle guy or any other 161 00:12:34.299 --> 00:12:41.100 stars but the two different types of management here so I shouldn't 162 00:12:41.100 --> 00:12:47.200 use that term jochen zeitz quizas quizas stock guy he's about the 163 00:12:47.200 --> 00:12:50.600 shareholders he's about the stock value he's about to board of 164 00:12:50.600 --> 00:12:56.799 directors at the dealer level. complete Paradigm Shift was a 165 00:12:56.799 --> 00:13:03.200 paradigm shift to hell for some of the specifics money for those of 166 00:13:03.200 --> 00:13:06.200 us who aren't in your position and I think there's a huge disconnect 167 00:13:06.200 --> 00:13:10.899 between Enthusiast like me and people listening to this and guys 168 00:13:10.899 --> 00:13:14.600 like you we buy her stuff from you but we really don't know what goes 169 00:13:14.600 --> 00:13:18.000 on behind the scenes and this is part of the reason people get 170 00:13:18.000 --> 00:13:21.500 frustrated two dealers and I'm sure you guys can get frustrated 171 00:13:21.500 --> 00:13:24.600 consumers cuz we don't necessarily know but you need to function to 172 00:13:24.600 --> 00:13:30.399 survive so what is it about that really work for you. 173 00:13:32.799 --> 00:13:39.000 arrogant. condescending didn't listen to his 174 00:13:39.000 --> 00:13:42.399 leadership team didn't listen to his dealers did listen to his 175 00:13:42.399 --> 00:13:45.899 customers who was the smartest guy in the room and if you tried to 176 00:13:45.899 --> 00:13:49.600 talk to him he would just get you get mad so I can just walk out of 177 00:13:49.600 --> 00:13:53.299 the room because anybody else but she was all about the stock price 178 00:13:53.299 --> 00:13:57.600 he actually put together a client of mine standings he was very 179 00:13:57.600 --> 00:14:01.500 involved with the a plan that he put together from self and his pay 180 00:14:01.500 --> 00:14:04.000 plan I don't know the specifics but it was something like if he 181 00:14:04.000 --> 00:14:07.200 was able to hit some magic number with a stock value Kings going to 182 00:14:07.200 --> 00:14:14.600 get a humongous that's why it's some kind of like that but his 183 00:14:14.600 --> 00:14:18.899 management style was not conducive to the Harley-Davidson I don't 184 00:14:18.899 --> 00:14:22.799 think he's a bad person but he was absolutely positively do you wrong 185 00:14:22.799 --> 00:14:31.000 person run Harley-Davidson motorcycles back he started to 186 00:14:31.000 --> 00:14:38.299 sell clothing. Commerce Steelers made a 187 00:14:38.299 --> 00:14:42.000 percentage of everything was sold in r and r d a t which is our ZIP 188 00:14:42.000 --> 00:14:49.600 codes are territory to make a Reason by March. 189 00:14:54.100 --> 00:14:58.700 and just to clarify for people so if it means a guy 10 miles from 190 00:14:58.700 --> 00:15:03.700 your store buys a t-shirt online then you get a certain percentage 191 00:15:03.700 --> 00:15:08.700 base that he's just local to you correct. That's how that works 192 00:15:08.700 --> 00:15:14.500 good for me. I have friends that were at a council meeting and he 193 00:15:14.500 --> 00:15:18.600 said that's my money not yours this is this is this guy mindset 194 00:15:18.600 --> 00:15:25.700 and what happened and we kept trying to tell him you're taking 195 00:15:25.700 --> 00:15:29.299 customers out of the store people to come in the store weekly 196 00:15:29.299 --> 00:15:32.600 monthly it was coming to buy a ball cap that would walk out with 197 00:15:32.600 --> 00:15:37.399 for five items and see that new shiny from by Kodak Black. Like 198 00:15:37.399 --> 00:15:42.200 they wanted they would buy that motorcycle out of the store we 199 00:15:42.200 --> 00:15:47.600 talk door swings and Automotive in Powersports, door swings you get 200 00:15:47.600 --> 00:15:52.600 our door swings dropped dropped her off and be try to talk to him 201 00:15:52.600 --> 00:16:01.600 about it and he just. when was it out of the store and 202 00:16:01.600 --> 00:16:07.799 it take that he changed it clothing clothing and aggressively 203 00:16:07.799 --> 00:16:18.799 to the new CEO of Harley Davidson but in terms of the the product 204 00:16:18.799 --> 00:16:22.899 idea of the limited to all you know of a broader portfolio of 205 00:16:22.899 --> 00:16:28.799 bikes of Harley-Davidsons versus idea you know of limiting 206 00:16:28.799 --> 00:16:31.799 abduction keeping to the high-margin bikes where do you fit 207 00:16:31.799 --> 00:16:34.700 on that in terms of just as a product only approach. 208 00:16:39.100 --> 00:16:45.899 mass in a Dodge and Chrysler and Jeep that they looked at all of it 209 00:16:45.899 --> 00:16:51.399 numbers being realistic covered with fantasy land and we will we 210 00:16:51.399 --> 00:16:54.100 will we will never see that again we sold everything we could get 211 00:16:54.100 --> 00:16:57.000 our hands on and Powersports hardly any product we could get 212 00:16:57.000 --> 00:17:00.700 went right out the door because what what you said was don't 213 00:17:00.700 --> 00:17:03.799 understand is when things get marked down for not selling or 214 00:17:03.799 --> 00:17:15.799 just too many situations and the green one and the blue one or the 215 00:17:15.799 --> 00:17:25.099 blue one down to get rid of it when it sits for so many days I 216 00:17:25.099 --> 00:17:31.700 think she believed the covid was was what the future held really 217 00:17:31.700 --> 00:17:37.599 none of us wherever we thought it would be a gradual decline covid 218 00:17:37.599 --> 00:17:39.000 fell out that those numbers fell off. 219 00:17:39.000 --> 00:17:42.200 interest rates went up and the cash that the federal government 220 00:17:42.200 --> 00:17:45.799 was getting consumers to go out and spend it on that dried-up that 221 00:17:45.799 --> 00:17:49.799 those sales in Powersports and all Recreational Products bicycles 222 00:17:49.799 --> 00:17:55.099 still have water cycles boats all this business is it worth showing 223 00:17:55.099 --> 00:17:58.900 record high product fell off a cliff so the longest looked at 224 00:17:58.900 --> 00:18:02.200 their products as well we can only deal with x amount of vehicles so 225 00:18:02.200 --> 00:18:05.799 we're only going to make the most expensive jeeps and Dodge has a 226 00:18:05.799 --> 00:18:08.200 Chryslers and we're going at work is not going to make this lower 227 00:18:08.200 --> 00:18:11.700 price Vehicles because working on deals too much would have built 228 00:18:11.700 --> 00:18:16.599 that high-priced that stuff changed and we were all telling 229 00:18:16.599 --> 00:18:21.700 you got to bring back these these lower price Vehicles why the hell 230 00:18:21.700 --> 00:18:25.500 did you cut Sportster we need Sportster back to listen to 231 00:18:25.500 --> 00:18:30.799 anything anybody management was a revolving door of people for the 232 00:18:30.799 --> 00:18:33.700 consumers didn't see we saw it all the people we have a relationship 233 00:18:33.700 --> 00:18:37.599 with the ones that they couldn't work with seats that with a lot of 234 00:18:37.599 --> 00:18:41.500 them just said I'm out of here. this guy's killing the company on 235 00:18:41.500 --> 00:18:45.299 the brand and they left and then he brought in people from all over 236 00:18:45.299 --> 00:18:50.400 the country and shut down Juneau Avenue which was the original 237 00:18:50.400 --> 00:18:55.099 Factory well people where I was on Harleys for three years we have 238 00:18:55.099 --> 00:18:58.900 meetings every three years before meetings a year and we would meet 239 00:18:58.900 --> 00:19:02.200 with all the president vice-president directors and they 240 00:19:02.200 --> 00:19:04.099 would have asked a lot of questions that we have some really 241 00:19:04.099 --> 00:19:07.500 great conversations about your baby boomers in new products so 242 00:19:07.500 --> 00:19:13.599 where do I find where do I fall on the between Matt levatich with no 243 00:19:13.599 --> 00:19:17.000 motor vehicles I think there's going to be a happy medium 244 00:19:17.000 --> 00:19:19.900 somewhere in the middle sites cut too much out. 245 00:19:20.599 --> 00:19:24.400 and in course there was a huge mistake and you saw Artie stars on 246 00:19:24.400 --> 00:19:27.700 Tuesday announced the sports is coming back why is it sports are 247 00:19:27.700 --> 00:19:31.200 coming back to dealers want the Sportster back the Riders want a 248 00:19:31.200 --> 00:19:34.000 Sportster back so we're going to have an air-cooled Sportster Amici 249 00:19:34.000 --> 00:19:40.099 PA requirements 2027 when I don't know but you know we have to do 250 00:19:40.099 --> 00:19:44.900 about that and October but we were sworn to secrecy is very 251 00:19:44.900 --> 00:19:49.200 transparent. I am I know the consumers make the statement which 252 00:19:49.200 --> 00:19:56.700 he's he's from Pizza Hut in Topgolf he listens he taught the 253 00:19:56.700 --> 00:19:59.000 people he listens to with the right ones to listen to it because 254 00:19:59.000 --> 00:20:02.900 he's not listening to the wrong people listen to the right one and 255 00:20:02.900 --> 00:20:06.400 he does he does his pee pee gets his data and he makes decisions 256 00:20:06.400 --> 00:20:09.099 and get stuff done I mean I don't think they could have picked a 257 00:20:09.099 --> 00:20:14.799 better leader the motor company in Aldi stores right now looking at 258 00:20:14.799 --> 00:20:18.299 Harley Davidson it's almost a recreation for motorcycle 259 00:20:18.299 --> 00:20:19.700 enthusiasts cuz everybody's got an opinion. 260 00:20:20.500 --> 00:20:22.900 that you're not busy you should do this they should do this then why 261 00:20:22.900 --> 00:20:25.000 don't they do this they should bring this back they should cut 262 00:20:25.000 --> 00:20:29.299 that and one of the things that's always fascinated me about 263 00:20:29.299 --> 00:20:31.900 Harley-Davidson in and small capacity bikes and I know they've 264 00:20:31.900 --> 00:20:34.900 done it for years in the 60s that did it with her Marquis rebranded 265 00:20:34.900 --> 00:20:38.599 Italian bikes and they are 2 Strokes it's always seemed to me 266 00:20:38.599 --> 00:20:41.700 an end curious in your opinion but it always seemed to me that Harley 267 00:20:41.700 --> 00:20:46.000 is just never had their heart in small capacity motorcycles now I 268 00:20:46.000 --> 00:20:49.500 know them for years my great margins on the big bikes and 269 00:20:49.500 --> 00:20:53.900 you're not going to make that kind of margin on on small bikes at one 270 00:20:53.900 --> 00:20:56.200 of the criticisms from industry people that I've heard about the 271 00:20:56.200 --> 00:21:01.500 straight line that 500 and a 750 where that Harley spect it so 272 00:21:01.500 --> 00:21:06.200 poorly that the bikes weren't very good but they wanted to make keep 273 00:21:06.200 --> 00:21:09.400 really good margins on bikes that you just can't sell at you know 274 00:21:09.400 --> 00:21:13.200 it's at for that price and make that much money at mean how do you 275 00:21:13.200 --> 00:21:17.200 feel about Harley in small bites cuz I've often thought that like 276 00:21:17.200 --> 00:21:20.400 the Honda Rebel or the Yamaha Virago 250 where the. 277 00:21:20.500 --> 00:21:23.799 beginner bikes for Harley cuz it seems like everybody would go 278 00:21:23.799 --> 00:21:27.900 there learn how to ride then go to a Harley but my question to you is 279 00:21:27.900 --> 00:21:31.700 is it important for Harley to have their own branded small capacity 280 00:21:31.700 --> 00:21:38.500 bikes Sportster absolutely up to 25% of their production at one 281 00:21:38.500 --> 00:21:41.799 point but of course you know Jay-Z look at and said we were making 282 00:21:41.799 --> 00:21:45.000 not just less margin on this bike it's less dollars because it's so 283 00:21:45.000 --> 00:21:50.599 it probably made sense that I would have got rid of it 284 00:21:50.599 --> 00:21:54.400 altogether but just reduced sit and spin and you know in and work 285 00:21:54.400 --> 00:22:00.299 and spend more time on big bikes and he cut it out completely not 286 00:22:00.299 --> 00:22:03.599 only did he cut it out he sold all the equipment all the equipments 287 00:22:03.599 --> 00:22:07.200 gone all the all the Stampers it would make the fuel tanks and 288 00:22:07.200 --> 00:22:11.200 fenders and it's going all that equipment they auctioned off and 289 00:22:11.200 --> 00:22:16.000 see if it's going to start all over again to bring the Sportster 290 00:22:16.000 --> 00:22:20.400 back I'm very excited for the Sportster probably again. 291 00:22:20.500 --> 00:22:25.099 twenty 25% of our our sales and okay will make less money on it 292 00:22:25.099 --> 00:22:28.400 but with people don't your people think we make these huge profit 293 00:22:28.400 --> 00:22:33.799 margins on everything and you really don't do I setup my voice 294 00:22:33.799 --> 00:22:36.599 one day in this was years ago I put $100 bill out of my pocket 295 00:22:36.599 --> 00:22:39.500 instead of this hundred dollars at the end of the year how much is 296 00:22:39.500 --> 00:22:41.000 left over to the owners of this dealership. 297 00:22:42.000 --> 00:22:50.200 and I have people say in 40 50 Cent's $50 percent of everything 298 00:22:50.200 --> 00:22:55.000 we sell I'm like we do you make that clothing clothing so what 299 00:22:55.000 --> 00:22:59.099 about all these other expenses in a my insurance might my taxes my 300 00:22:59.099 --> 00:23:04.299 facility expenses people don't understand that I'm a numbers guy 301 00:23:04.299 --> 00:23:07.599 all right I'll get criticized and I'm not out riding thousands of 302 00:23:07.599 --> 00:23:11.200 miles every year I'm a business guy I ride a little bit I do love 303 00:23:11.200 --> 00:23:14.799 motorcycles but I'm business. I like you a lot of accounting 304 00:23:14.799 --> 00:23:19.500 courses of the business major in college shoes for Connor 20 groups 305 00:23:19.500 --> 00:23:23.500 for dealers on the 20 group came from the Auto industry basically 306 00:23:23.500 --> 00:23:27.500 there is up to $20 every month we compare our numbers so I can look 307 00:23:27.500 --> 00:23:31.000 at all the other dealers in my groups numbers for new motorcycle 308 00:23:31.000 --> 00:23:35.000 so I can see how many they sold the margin I can see how many 309 00:23:35.000 --> 00:23:38.500 dollars they made an f and I I can see how many parts they sold per 310 00:23:38.500 --> 00:23:41.000 vehicle sold and this is the stuff I do daily. 311 00:23:42.000 --> 00:23:44.799 blast me how much is a Dunlop tire and I don't have an answer for me 312 00:23:44.799 --> 00:23:54.099 cuz I don't sell Dunlop tires I don't know the parts department, 313 00:23:54.099 --> 00:23:59.400 I'm off track sorry the person that little bit out of that $100 314 00:23:59.900 --> 00:24:02.799 what would you what would you take home as it as an owner at the end 315 00:24:02.799 --> 00:24:09.000 of the day before it's this last couple years this mess typically 316 00:24:09.000 --> 00:24:14.700 5% and some of the best operators in the country might take 10 11%. 317 00:24:15.900 --> 00:24:18.700 you know that that that's what that's what that's that's a really 318 00:24:18.700 --> 00:24:23.400 great operation making us, we exceeded all those numbers because 319 00:24:23.400 --> 00:24:30.900 there was no cover described by a dealer as the single best and the 320 00:24:30.900 --> 00:24:35.000 single worst thing that ever happened to this dealership it 321 00:24:35.000 --> 00:24:41.099 would you agree weeks and we had no idea we're going to get open 322 00:24:41.099 --> 00:24:45.400 back up again guys in like 20 group and other states were open 323 00:24:45.400 --> 00:24:50.099 in Pennsylvania shut us down we had weekly Zoom meetings and I 324 00:24:50.099 --> 00:24:55.400 actually wanted five weeks into this and I'm sitting on in seven 325 00:24:55.400 --> 00:24:58.400 million dollars with a vehicle inventory and I'm still paying 326 00:24:58.400 --> 00:25:01.200 floor plan I'm still going to the dealership and paying my my my 327 00:25:01.200 --> 00:25:06.099 payables and I said my 20 if I said I have all these different or 328 00:25:06.099 --> 00:25:09.400 you guys want some inventory there like wait hold on George will take 329 00:25:09.400 --> 00:25:12.400 all your inventory of what you need you need to understand what 330 00:25:12.400 --> 00:25:15.799 we're saying we're in states are shut down we're selling. 331 00:25:15.799 --> 00:25:19.000 we can get our hands on and what you need to understand is all the 332 00:25:19.000 --> 00:25:24.000 manufacturers their shut down they are producing nothing so inventory 333 00:25:24.000 --> 00:25:27.200 when things open up there's not going to be any inventory some 334 00:25:27.200 --> 00:25:30.700 I-20 group George not only should you not sell any more than Tori 335 00:25:30.700 --> 00:25:33.500 you need to go buy whatever you can get your hands on and we don't 336 00:25:33.500 --> 00:25:36.000 care if it's Brands you carry or you could pick up additional 337 00:25:36.000 --> 00:25:39.400 Brands you need to buy everything you can buy whatever is on the on 338 00:25:39.400 --> 00:25:47.000 the ship on the way and we experience numbers that we never 339 00:25:47.000 --> 00:25:51.799 thought we'd experience you're paying wages you're paying all 340 00:25:51.799 --> 00:25:54.700 your expenses your store is closed for 10 weeks. 341 00:25:55.799 --> 00:25:59.700 in the Natural Instinct for me would be to panic and get 342 00:25:59.700 --> 00:26:03.599 everything out of there and you did the opposite you listen to 343 00:26:03.599 --> 00:26:08.000 this group and if you've been in this much as you could cut 344 00:26:08.000 --> 00:26:10.000 whatever expenses I could I thought that you had the company 345 00:26:10.000 --> 00:26:13.200 to bring so shop rags and the company that does the garbage 346 00:26:13.200 --> 00:26:21.299 garbage to pick up motorcycles at the door know I was going to my 20 347 00:26:21.299 --> 00:26:24.099 group say my but they're like no George will take everything you 348 00:26:24.099 --> 00:26:27.200 have but you need to order more and I did and they took they they 349 00:26:27.200 --> 00:26:30.200 told me the hours for side there's these brands that you can probably 350 00:26:30.200 --> 00:26:34.099 pick up that we picked up you can get product from because Kawasaki 351 00:26:34.099 --> 00:26:37.700 Honda that. They're they're out they they've got nothing so we 352 00:26:37.700 --> 00:26:45.099 picked up some other brands Harley you know we would talk about the 353 00:26:45.099 --> 00:26:47.700 Baby Boomers the numbers are decreasing we're going to see Less 354 00:26:47.700 --> 00:26:50.500 sales we need to sell two different ethnic groups we need to 355 00:26:50.500 --> 00:27:01.799 Celtic Women White. and I grew up riding dirt bikes 356 00:27:01.799 --> 00:27:04.799 and my friends all grew up riding dirt bikes we all had little 357 00:27:04.799 --> 00:27:10.099 Honda's little zuki's what-have-you its timing on kids 358 00:27:10.099 --> 00:27:13.299 quit riding dirt bikes and the prices got so expensive from the 359 00:27:13.299 --> 00:27:17.299 Japanese better than a little Honda Z50 and I were the exact 360 00:27:17.299 --> 00:27:20.299 price now but I think there are upper I don't think they're two 361 00:27:20.299 --> 00:27:24.400 grand. I think they're probably pushing that people just can't 362 00:27:24.400 --> 00:27:28.299 afford to go by these dirt bikes for kids so these Riders like my 363 00:27:28.299 --> 00:27:31.500 age we started on dirt bikes we got in the bigger dirt bikes and 364 00:27:31.500 --> 00:27:36.900 we got the small CC street bike that was gone for many years covid 365 00:27:36.900 --> 00:27:41.400 we sold hundreds and hundreds of kids dirt bikes so I believe that 366 00:27:41.400 --> 00:27:44.000 those kids that rode his dirt bikes as they get to the age where 367 00:27:44.000 --> 00:27:47.299 they can write small CC street fights they're going to buy them 368 00:27:47.299 --> 00:27:50.099 and as they get older but they're going to buy some bigger cc street 369 00:27:50.099 --> 00:27:53.000 bike so I think we're going to see a nice bump from all these kids 370 00:27:53.000 --> 00:27:56.000 got dirt bikes. that's something most people don't 371 00:27:56.000 --> 00:27:59.299 talk about 30 Stars I mean your but your bullish on Starz and I 372 00:27:59.299 --> 00:28:01.599 think you're right A lot of people are very skeptical and it was kind 373 00:28:01.599 --> 00:28:04.099 of a joke running around the motive is about you know the top 374 00:28:04.099 --> 00:28:07.599 golf guy and what you know about motorcycles but you've you've 375 00:28:07.599 --> 00:28:12.900 liked what you seen so far yes I got lucky It's a Small World on my 376 00:28:12.900 --> 00:28:18.500 dad has a friend in Dallas Texas that manufacturers like building 377 00:28:18.500 --> 00:28:22.500 materials he does a lot of limestone for like lentils and you 378 00:28:22.500 --> 00:28:25.299 know that he doesn't dislike shingles and he's big in this Lee 379 00:28:25.299 --> 00:28:30.200 building materials anyways the day after they announced Harley Harley 380 00:28:30.200 --> 00:28:35.200 hired Our Stars a CEO and I sought my stomach drop the mic on my God 381 00:28:35.200 --> 00:28:37.700 they could have hired my Kennedy they could have hired you know 382 00:28:37.700 --> 00:28:40.500 they could have hired at Scott wine from Volaris it could have 383 00:28:40.500 --> 00:28:43.799 hired me all these industry people they hired this guy a day after 384 00:28:43.799 --> 00:28:46.900 they made announcements this friend of my dad's calls him up 385 00:28:46.900 --> 00:28:51.000 then part and my dad's 87 years old and he says George because I 386 00:28:51.000 --> 00:28:53.799 have a really good friend here in Dallas. 387 00:28:54.700 --> 00:28:58.799 off today and have dinner why because he's a great guy. He's got 388 00:28:58.799 --> 00:29:03.000 hired as a CEO Harley he wants to talk to you my dad's like I'm 87 389 00:29:03.000 --> 00:29:07.400 and he was talk to my son my son is with the Harley dealer 390 00:29:07.400 --> 00:29:14.900 Association and the next day I get to phone call from our he starts 391 00:29:14.900 --> 00:29:16.400 we spent an hour-and-a-half on the phone. 392 00:29:17.700 --> 00:29:23.000 he talked a lot about the customer experience he talked a lot about 393 00:29:23.000 --> 00:29:25.200 before he even interviewed he went bought a Harley-Davidson 394 00:29:25.200 --> 00:29:28.900 motorcycle and all the all the items go along with it helmets 395 00:29:28.900 --> 00:29:33.299 gloves and I hope you what is experience was dealership 396 00:29:33.299 --> 00:29:37.200 different dealerships eat before I apply for this job because I 397 00:29:37.200 --> 00:29:44.900 wanted to know what this was all about and then he just asked a ton 398 00:29:44.900 --> 00:29:48.000 of questions and he said you know he does Georgia cuz you know your 399 00:29:48.000 --> 00:29:50.400 business guy I grew up in the business while we work on my wifey 400 00:29:50.400 --> 00:29:53.599 Young Presidents organization of a member of his wife e l group here 401 00:29:53.599 --> 00:29:56.200 in Pittsburgh for years he has friends of Dallas are the members 402 00:29:56.200 --> 00:30:00.700 of why don't we talk about why I feel and he's he's like I don't 403 00:30:00.700 --> 00:30:06.000 start work at Harley for about two and a half months I started talk 404 00:30:06.000 --> 00:30:08.400 off right now and we're in the middle of some stuff for what I 405 00:30:08.400 --> 00:30:12.099 thought I was it was it was soaked and so on top golf Callaway where 406 00:30:12.099 --> 00:30:16.000 were paid for it and it could take like 16 or 18 times earnings for 407 00:30:16.000 --> 00:30:20.700 it LOL. so you want to get that sale done 408 00:30:20.700 --> 00:30:24.700 before he moved over to his I want to do my homework so I start 409 00:30:24.700 --> 00:30:27.500 because can you give me the name of some dealers that are in the 410 00:30:27.500 --> 00:30:30.599 know that I should talk to because one discussions we had Beyond 411 00:30:30.599 --> 00:30:36.099 customer experience was that he has to listen to the right people 412 00:30:36.099 --> 00:30:39.200 if you listen to the wrong people there they're going to tell him 413 00:30:39.200 --> 00:30:43.299 that you can see each was correct and we all know you was was not 414 00:30:43.299 --> 00:30:46.200 correct that will tell you our deal organization did everything 415 00:30:46.200 --> 00:30:50.900 we could possibly do to get him out of office because I believe it 416 00:30:50.900 --> 00:30:54.599 wasn't raised partners and in the new organization pushing him out 417 00:30:54.599 --> 00:30:57.299 but he still be chairman of the board he still be calling the 418 00:30:57.299 --> 00:31:01.599 shots there cuz that's the kind of guy is total control and that's 419 00:31:01.599 --> 00:31:08.099 just how he is so he could you recommend I talked to like okay I 420 00:31:08.099 --> 00:31:11.200 mean I'm just a dealer already cuz I respect your opinion I've heard 421 00:31:11.200 --> 00:31:14.400 good things about other people that you know you'll do a good job 422 00:31:14.400 --> 00:31:20.299 and I should talk to and. I gave them $60 he called every 423 00:31:20.299 --> 00:31:23.500 one of them had long multiple conversations with these guys and 424 00:31:23.500 --> 00:31:26.000 he's our guys are in the know about the ball as well down in 425 00:31:26.000 --> 00:31:43.000 Nashville Scott Maddox has has has stores in that area of leaders who 426 00:31:43.000 --> 00:31:49.900 should I talk to again then six Harley Race couple days with Matt 427 00:31:49.900 --> 00:31:54.700 levatich even spend a couple days with Keith Wendell who was the CEO 428 00:31:54.700 --> 00:32:00.099 before Matt said he spent more than multiple want to spend a lot 429 00:32:00.099 --> 00:32:06.099 of time with these guys asking a lot of questions and then he 430 00:32:06.099 --> 00:32:08.900 called out so who else should I talk to nightscout feeding a man's 431 00:32:08.900 --> 00:32:16.099 calling all these guys fly out to see them like wow this guy is it 432 00:32:16.099 --> 00:32:20.599 fair to say that's unheard of. it's on her. That's what this guy 433 00:32:20.599 --> 00:32:23.400 is all about he wanted to learn everything he could learn so when 434 00:32:23.400 --> 00:32:26.900 he starts of Harley his first day at Harley is the dealership in 435 00:32:26.900 --> 00:32:31.599 Milwaukee it's his first day he did that first day he was on the 436 00:32:31.599 --> 00:32:35.000 floor the entire time walking around Talk of the dealers and 437 00:32:35.000 --> 00:32:38.599 dealership employees the whole time he was there he was 438 00:32:38.599 --> 00:32:41.599 accessible he was talking to everybody he was asking questions 439 00:32:41.599 --> 00:32:45.799 is a notepad he came to Pittsburgh and I got to spend a whole I'd 440 00:32:45.799 --> 00:32:49.500 like a for our dinner with him and then the next morning you change 441 00:32:49.500 --> 00:32:53.200 the my dealership and he spent a couple hours talking to my staff 442 00:32:53.200 --> 00:32:56.599 which working what's not working you did my parts department he 443 00:32:56.599 --> 00:32:59.700 says well because I like that you guys carry almost all Harley 444 00:32:59.700 --> 00:33:01.599 thought I could I see some aftermarket why do you had 445 00:33:01.599 --> 00:33:06.200 aftermarket my stash like a pretty simple we carry sat seats we carry 446 00:33:06.200 --> 00:33:11.799 lighting we carry windshields exhaust because Harley stuff sucks. 447 00:33:12.799 --> 00:33:15.500 and he's like okay tell me more and he's taking notes right in 448 00:33:15.500 --> 00:33:19.200 this all down during the earnings report it just said we're going to 449 00:33:19.200 --> 00:33:23.200 focus more on these accessory items that we have Nord this is 450 00:33:23.200 --> 00:33:27.099 business we've given away this is just the kind of guy is so is is a 451 00:33:27.099 --> 00:33:32.099 is a leader of a company that carries a product that's in a it's 452 00:33:32.099 --> 00:33:35.799 an emotionally-charged you know it's it's a very, very emotionally 453 00:33:35.799 --> 00:33:39.700 attached product in the brand name is just draws people from all 454 00:33:39.700 --> 00:33:43.400 different walks of life he's the right guy he's absolutely the 455 00:33:43.400 --> 00:33:48.400 right guy what do you feel about in the NFC that there's going to 456 00:33:48.400 --> 00:33:52.500 be a 883 CC Sportster not made from the old tooling of course as 457 00:33:52.500 --> 00:33:54.400 you mentioned cuz it no longer exists. 458 00:33:55.099 --> 00:34:00.799 seemingly for the 27 riding season I would think as you mentioned but 459 00:34:00.799 --> 00:34:05.900 what about this this 440cc bike how do you and how do you feel a 460 00:34:05.900 --> 00:34:10.300 boat we've always thought of Harley at least in recent years as 461 00:34:10.300 --> 00:34:14.000 the as the Sportster line being the way in but of course you know 462 00:34:14.000 --> 00:34:16.300 a lot of Brands a lot of the brands that you sell a lot of the 463 00:34:16.300 --> 00:34:20.900 Japanese brands. an Enfield have smaller bikes 350 464 00:34:20.900 --> 00:34:25.199 S400 just Harley need to compete in that category or is it a bike 465 00:34:25.199 --> 00:34:28.000 that's always going to be something you move from another 466 00:34:28.000 --> 00:34:33.000 brand to if it's priced accordingly I think they'll sell 467 00:34:33.000 --> 00:34:39.300 well because people embrace the brand my daughter is 26 her 468 00:34:39.300 --> 00:34:42.800 friends are not buying Street Glides in Roblox one small cc 469 00:34:42.800 --> 00:34:46.099 bikes and they love the brand that the only way they can get into the 470 00:34:46.099 --> 00:34:49.099 brand has it got to buy used bike and I we do a tremendous business 471 00:34:49.099 --> 00:34:53.500 with use motorcycles used Sportsters are golden right now I 472 00:34:53.500 --> 00:34:57.400 mean they're just people are paying over retail for these bikes 473 00:34:57.400 --> 00:35:10.300 even in this economy blacked out like 883 irons we can't get them 474 00:35:10.300 --> 00:35:12.900 at the auctions or buy them off the street because they're just in 475 00:35:12.900 --> 00:35:16.599 such high demand so that's spread so I was on Harley dealer advisory 476 00:35:16.599 --> 00:35:20.400 Council when they introduced. the street now with Matt levatich 477 00:35:20.400 --> 00:35:23.199 took the the sheet off of it said this is something we're going to 478 00:35:23.199 --> 00:35:27.599 have another year and they told us the MSRP on it I'm like that's 479 00:35:27.599 --> 00:35:30.599 going to sell or do really well with that the problem was when 480 00:35:30.599 --> 00:35:33.599 they finally brought the market it was like almost two grand more 481 00:35:33.599 --> 00:35:36.099 than what they said it was going to be original so I don't know 482 00:35:36.099 --> 00:35:40.199 what happened if it was margin if it was noted that the cost was 483 00:35:40.199 --> 00:35:43.000 just too high but that black women the price they said it was going 484 00:35:43.000 --> 00:35:46.500 to be we could have sold a lot of streets it was overpriced for the 485 00:35:46.500 --> 00:35:52.599 value of the vehicle it was just a bad bike at that price zactly it 486 00:35:52.599 --> 00:35:59.699 was too expensive so consumers always tell us we want made in 487 00:35:59.699 --> 00:36:03.800 America got to be made in America the consumers are not willing to 488 00:36:03.800 --> 00:36:07.500 pay extra money for made in America snow that's true I guess 489 00:36:07.500 --> 00:36:11.699 people do not walk the talk and you know I don't like people Matt 490 00:36:11.699 --> 00:36:15.199 saying this but this is my this is my viewpoint is a dealer people 491 00:36:15.199 --> 00:36:17.300 said we want made in America t-shirts you want made the 492 00:36:17.300 --> 00:36:19.800 American leather. Harley made them they would not 493 00:36:19.800 --> 00:36:23.099 buy them I'm not paying $10 more for a t-shirt or $9 more for a 494 00:36:23.099 --> 00:36:27.800 t-shirt I don't care I'll buy the Chinese one I'm not paying $75 a 495 00:36:27.800 --> 00:36:30.900 hundred dollars more for a leather jacket I'll buy this one people 496 00:36:30.900 --> 00:36:33.599 want to talk with the same thing when they came out with the ref 497 00:36:33.599 --> 00:36:38.099 Mass place especially the the the new the nicer when that black was 498 00:36:38.099 --> 00:36:43.000 made in the US like 14 Grand starting price wooden Pat it 499 00:36:43.000 --> 00:36:47.000 wasn't worth 14 Grand as soon as I move the Thailand people are all 500 00:36:47.000 --> 00:36:50.500 in a right nasty stuff all over the Internet and the nasty YouTube 501 00:36:50.500 --> 00:36:54.699 videos but guess what we saw a lot of them though it's not your your 502 00:36:54.699 --> 00:36:58.500 your baby boomer that that you know it's all about made in 503 00:36:58.500 --> 00:37:02.199 America that's buying that bike it's it's the people my daughter's 504 00:37:02.199 --> 00:37:05.000 age they're in their twenties in her thirties they don't care 505 00:37:05.000 --> 00:37:08.300 what's made they don't if if I if a Hyundai has better specs for the 506 00:37:08.300 --> 00:37:12.800 money than a Chevrolet they're buying a Hyundai they don't care 507 00:37:12.800 --> 00:37:17.000 about that is also don't understand that the companies that 508 00:37:17.000 --> 00:37:19.400 cold all the patent. all the technology on certain 509 00:37:19.400 --> 00:37:24.000 parts are in the US and it's not Harley-Davidson bike suspension is 510 00:37:24.000 --> 00:37:28.199 typically show up companies that makes you injections systems and 511 00:37:28.199 --> 00:37:30.900 controls are made outside of the country people don't understand 512 00:37:30.900 --> 00:37:33.800 that there we wanted made in America that guess what you can't 513 00:37:33.800 --> 00:37:37.199 make a lot of stuff but you know a lot of work but they do make here 514 00:37:37.199 --> 00:37:40.900 on the bigger bikes more expensive bikes to get it they didn't make 515 00:37:40.900 --> 00:37:44.000 as much as I can through Sprint I think we can sell them at their 516 00:37:44.000 --> 00:37:46.500 price right now they're telling us they're going to be probably you 517 00:37:46.500 --> 00:37:57.400 know we are Will and she'll dealer in the Powersports store and what 518 00:37:57.400 --> 00:38:00.400 a great bike for the money will you mention Royal Enfield and I 519 00:38:00.400 --> 00:38:03.699 really want to talk to you that because you're not a unique 520 00:38:03.699 --> 00:38:05.699 position because you're not the only guy that sells Harley's 521 00:38:05.699 --> 00:38:08.400 another another kind kinds of motorcycles but you are in an 522 00:38:08.400 --> 00:38:13.099 interesting position and I think of Royal Enfield kind of is oddly 523 00:38:13.099 --> 00:38:15.400 enough because they were nearly dead not so many years ago. 524 00:38:16.199 --> 00:38:20.000 but it's kind of it's almost a perfect Motorcycle company I think 525 00:38:20.000 --> 00:38:24.199 because the bikes are inexpensive they have character they're 526 00:38:24.199 --> 00:38:28.500 well-built they seem to appeal to what we want in a motorcycle 527 00:38:28.500 --> 00:38:31.800 something with character we're not going to ride it to work 10 months 528 00:38:31.800 --> 00:38:34.900 a year. what kind of Harley-Davidson to 529 00:38:34.900 --> 00:38:40.099 learn from Royal Enfield everything just touches something 530 00:38:40.099 --> 00:38:43.900 else Rod codes for the senior VP for Harley-Davidson after Rod cups 531 00:38:43.900 --> 00:38:47.800 left Harley-Davidson he was a guy that brought boil in sealed back 532 00:38:47.800 --> 00:38:52.599 in the US they had a great man our crappy distribution system A-Rod 533 00:38:52.599 --> 00:39:01.699 was a guy that that in Milwaukee Rod actually went to he went to 534 00:39:01.699 --> 00:39:13.000 Harley bikes dealers and it got poop. Poops what a difference that 535 00:39:13.000 --> 00:39:15.699 would have made if we were selling a Royal Enfield in a 536 00:39:15.699 --> 00:39:21.300 Harley-Davidson dealership be a whole different story and 537 00:39:21.300 --> 00:39:26.500 overpriced we wouldn't be looking at you know where they have been 538 00:39:26.500 --> 00:39:29.500 charged with a have been rebranded Harley-Davidson or just sold as 539 00:39:29.500 --> 00:39:30.000 Infinity.. 540 00:39:33.099 --> 00:39:35.900 call couple the higher-ups and he said they basically chase them out 541 00:39:35.900 --> 00:39:40.900 of the bill cuz they would be perfect perfect match for 542 00:39:40.900 --> 00:39:46.900 Harley-Davidson cuz they're kind of primitive kind of lovable on 543 00:39:46.900 --> 00:39:51.199 Google back to my question what could hardly learn from a Royal 544 00:39:51.199 --> 00:39:55.000 Enfield is done cuz Royal Enfield is selling approximately 10 545 00:39:55.000 --> 00:39:58.900 million motorcycles a year now up from nearly nothing that's so many 546 00:39:58.900 --> 00:40:03.099 years ago what it what do you see in Enfield it that Harley can 547 00:40:03.099 --> 00:40:10.000 learn from a great classic design is very nice-looking one thing I'm 548 00:40:10.000 --> 00:40:13.000 going to jump in the weeds real quick on the Powersports side one 549 00:40:13.000 --> 00:40:16.000 of the things were that were experiencing right now is not a 550 00:40:16.000 --> 00:40:19.699 paradigm shift we are seeing consumers may be younger consumers 551 00:40:19.699 --> 00:40:23.900 aren't buying the big store brand Japanese France they're buying 552 00:40:23.900 --> 00:40:29.199 CFMOTO and we're seeing it on the Powersports Polaris because I was 553 00:40:29.199 --> 00:40:32.199 selling so many to see if Moto's and I could actually make a margin 554 00:40:32.199 --> 00:40:36.400 would. Polaris their business model sucks 555 00:40:36.400 --> 00:40:41.500 and they basically you're selling. They have this fictitious MSRP and 556 00:40:41.500 --> 00:40:44.000 then you've got a cell everything it cost and if you hit your 557 00:40:44.000 --> 00:40:46.900 numbers for the month and you get you get rebate son of money back 558 00:40:46.900 --> 00:40:50.199 that's how you make your money is a Polaris they were such a race to 559 00:40:50.199 --> 00:41:00.500 the bottom and everybody's but they make a great product for the 560 00:41:00.500 --> 00:41:03.900 money so we can hardly learn from that if they're going to compete 561 00:41:03.900 --> 00:41:08.199 in that and that line of products they have to go to Asia but have 562 00:41:08.199 --> 00:41:12.699 to go to India cheap labor to get take to build Vehicles now to be 563 00:41:12.699 --> 00:41:15.500 their design it could be there to look like they're you know they 564 00:41:15.500 --> 00:41:21.800 have some kind of nostalgic qualities to it they're going to 565 00:41:21.800 --> 00:41:24.300 have to go over there and utilize those factories whether it's here 566 00:41:24.300 --> 00:41:28.000 or whether it's a Royal Enfield whether it's you know that there's 567 00:41:28.000 --> 00:41:29.400 a but I don't know all the Asian ones. 568 00:41:32.699 --> 00:41:36.500 the parallel has been made between what see if Motors doing now the 569 00:41:36.500 --> 00:41:38.500 car see if motor came in and it would have said I'm not buying 570 00:41:38.500 --> 00:41:43.500 that Chinese and of course. Did you see the parallel back when you 571 00:41:43.500 --> 00:41:46.400 were this dirty nose kid cleaning the kitty litter from underneath 572 00:41:46.400 --> 00:41:51.300 your dad's lineup I mean the Japanese came in and of course I'm 573 00:41:51.300 --> 00:41:54.099 not we're not going to buy that chance crap and of course they 574 00:41:54.099 --> 00:41:57.199 were beautifully made beautifully engineered motorcycles do you see 575 00:41:57.199 --> 00:42:00.500 a parallel between what CFMOTO was doing now and other Chinese Brands 576 00:42:00.500 --> 00:42:05.599 cuz there are on the March and the Japanese situation in the 60s it 577 00:42:05.599 --> 00:42:10.900 get better every year for my 20 group again I were a couple deal 578 00:42:10.900 --> 00:42:15.199 with these things we got some problems with him but we're also 579 00:42:15.199 --> 00:42:17.500 complaining about all the problems with Alerus I have two full-time 580 00:42:17.500 --> 00:42:27.199 text doing taleris warranty and recall to full-time. It's the 581 00:42:27.199 --> 00:42:30.300 quality of CF Moto was probably as bad as Polaris was it that time 582 00:42:30.300 --> 00:42:32.400 maybe a little worse but the quality today. 583 00:42:32.800 --> 00:42:37.500 I have more Japanese side-by-sides ATVs in my store for repair but I 584 00:42:37.500 --> 00:42:46.599 have see photos right now so you know it sounds Chinese products no 585 00:42:46.599 --> 00:42:49.800 I want it I want to sell American products but you know if you're 586 00:42:49.800 --> 00:42:53.599 going to compete today you can't do anything without that cheap 587 00:42:53.599 --> 00:42:56.500 labor over there and within the nipton like I said they get better 588 00:42:56.500 --> 00:43:00.300 every of the technology manufacturing every year it gets 589 00:43:00.300 --> 00:43:05.099 better better than I've always said is a very unusual company so 590 00:43:05.099 --> 00:43:07.900 just bear with me for a moment when you think of state to Connie 591 00:43:07.900 --> 00:43:11.900 these other these Legacy so-called Legacy Branch you know Ducati 592 00:43:11.900 --> 00:43:16.699 still manages to have the sort of boutiquefeel and yet they pursue 593 00:43:16.699 --> 00:43:18.900 high-technology their machines or not. 594 00:43:19.699 --> 00:43:23.300 you know it really that they might do a retro e-version but they're 595 00:43:23.300 --> 00:43:27.300 really not we know old fashioned bikes are modern high-tech bikes 596 00:43:27.300 --> 00:43:31.099 Harley-Davidson in their in their past whenever they try anything 597 00:43:31.099 --> 00:43:34.599 look at the V-Rod which I thought had one of the best engines I've 598 00:43:34.599 --> 00:43:38.599 ever experienced in a motorcycle. well that didn't really work cuz 599 00:43:38.599 --> 00:43:41.699 it didn't really look like a Harley-Davidson supposed to look I 600 00:43:41.699 --> 00:43:46.199 mean does a Harley always have to look like a 1952 Panhead I mean it 601 00:43:46.199 --> 00:43:49.699 seems it almost seems like the the the people who love the brand. 602 00:43:50.900 --> 00:43:55.199 you know love it a little too much they can feel I get the feeling 603 00:43:55.199 --> 00:43:59.000 they kind of stifle it what's your view on that I think it's 604 00:43:59.000 --> 00:44:03.800 listening to the wrong people it's always been a baby but but there 605 00:44:03.800 --> 00:44:08.099 are younger Generations that aren't white guys look like Santa 606 00:44:08.099 --> 00:44:15.099 Claus in letters so they have to make products for those people and 607 00:44:15.099 --> 00:44:17.800 that's one of the things that Matt levatich was working on now so 608 00:44:17.800 --> 00:44:21.400 maybe it was too aggressive I don't know I'm not that pay grade 609 00:44:21.400 --> 00:44:26.400 but you know I believe that they have other vehicles like already 610 00:44:26.400 --> 00:44:30.400 star-studded Migos why don't we have an automatic shifting 611 00:44:30.400 --> 00:44:33.699 motorcycle because I came from not riding it is it's intimidating 612 00:44:33.699 --> 00:44:41.599 looking it up on automatic there's barely any cars that are standard 613 00:44:41.599 --> 00:44:46.900 shift anymore I'm a big muscle car guy I like I like I like standard 614 00:44:46.900 --> 00:44:47.500 shift cars. 615 00:44:50.900 --> 00:44:53.599 I'm talking about I don't want you trying shifting I want to I want 616 00:44:53.599 --> 00:44:59.400 to ship it myself but the younger generation I mean that they got 617 00:44:59.400 --> 00:45:05.099 young kids doing the valet parking if it was him I took my car into 618 00:45:05.099 --> 00:45:08.400 to take for some work done and and the woman said listen to mind 619 00:45:08.400 --> 00:45:11.800 pulling it in cuz I don't know how to drive a standard I mean it's 620 00:45:11.800 --> 00:45:16.699 only it's only a few percent of the car so it didn't go off topic 621 00:45:16.699 --> 00:45:21.500 but Stars trying to reach out and I mean but back to this idea of of 622 00:45:21.500 --> 00:45:24.500 the bikes see me anything is non-traditional and it seems like 623 00:45:24.500 --> 00:45:29.599 these guys I get angry and it's like my Harley and my Harley my 624 00:45:29.599 --> 00:45:32.800 brand I mean you know they got the tattoo was going to argue with him 625 00:45:32.800 --> 00:45:36.699 has to be this and you think that's been a mistake. 626 00:45:37.300 --> 00:45:41.599 well you know what this mean you brought up 350,000 Vehicles being 627 00:45:41.599 --> 00:45:45.199 sold in 2006 and you're the last year was I don't know the exact 628 00:45:45.199 --> 00:45:52.000 number was at 120,000. It was 120 4500 is a number I dropped that 629 00:45:52.000 --> 00:45:57.199 much motorcycles are out there and you know some of these guys are 630 00:45:57.199 --> 00:46:02.199 doing the most griping on social media there riding a 2002 fatboy 631 00:46:02.199 --> 00:46:16.000 bikes for 4 years and you acted first conversation I had with Ari 632 00:46:16.000 --> 00:46:19.099 got to listen to the right people if you listen the guy riding the 633 00:46:19.099 --> 00:46:24.000 2002 Fatboy you don't want to listen to that guy but yeah he's 634 00:46:24.000 --> 00:46:27.699 he's a Harley Rider but he's he's he's not he's not buying a new 635 00:46:27.699 --> 00:46:30.099 motorcycle he's not going to buy a new motorcycle and he'll give you 636 00:46:30.099 --> 00:46:32.900 all these opinions but why he doesn't like the new rogue like 637 00:46:32.900 --> 00:46:35.199 cuz it said he doesn't like the look in the fairing or doesn't 638 00:46:35.199 --> 00:46:49.800 like the electronic gages butt. customer you need it anyway like 639 00:46:49.800 --> 00:46:55.000 when they look at my my my my my territory they know how many bikes 640 00:46:55.000 --> 00:46:57.599 I can sell in a year because they know how much income per household 641 00:46:57.599 --> 00:47:02.199 you know white African-American Asian Hispanic like they know all 642 00:47:02.199 --> 00:47:07.599 this male-female they have really good data on on Whose potential 643 00:47:07.599 --> 00:47:11.199 buyer and that's who already has to listen to not not the old-timer 644 00:47:11.199 --> 00:47:20.199 that sits on to buy new bike anyway so you know how are things 645 00:47:20.199 --> 00:47:22.599 at your dealership right now cuz one of the things we're here is of 646 00:47:22.599 --> 00:47:26.000 course that use Marketplace is a glut of Harley-Davidsons on the 647 00:47:26.000 --> 00:47:30.000 used market and that's really impacting dealers ability to sell 648 00:47:30.000 --> 00:47:33.199 new product so at the house and you see mentioned Consolidated a 649 00:47:33.199 --> 00:47:34.900 couple of location three locations 21. 650 00:47:35.500 --> 00:47:41.800 3131 I mean how are you doing now that was a god-sent it's saved me 651 00:47:41.800 --> 00:47:45.300 during the Badgers I had to run three stores with the overhead at 652 00:47:45.300 --> 00:47:49.000 3 stores it probably would have bankrupted me but having all that 653 00:47:49.000 --> 00:47:53.400 consolidation 21 store it took my volume up on my head less overhead 654 00:47:53.400 --> 00:47:56.699 one of the problems today and this is one of inspection is already 655 00:47:56.699 --> 00:48:01.400 and I had our on early on was that the cost of running a standalone 656 00:48:01.400 --> 00:48:06.400 Harley-Davidson dealership today with those decreased sales you 657 00:48:06.400 --> 00:48:09.900 only have a couple options as a dealer to be profitable and I know 658 00:48:09.900 --> 00:48:12.199 there's been a bunch of Articles out there that the majority Harley 659 00:48:12.199 --> 00:48:15.900 money for the last 2 years and the reason why is our overhead is 660 00:48:15.900 --> 00:48:22.699 really hot we got these beautiful small store and that's just for 661 00:48:22.699 --> 00:48:27.599 the Harley-Davidson but if I wasn't doing used. 662 00:48:28.400 --> 00:48:33.099 I would have been in the red I did a lot of use B last last week we 663 00:48:33.099 --> 00:48:38.199 done last 2 years a lot of used bikes over to the wine would like 664 00:48:38.199 --> 00:48:44.699 to get the 321 used to know the dealer trade in my body aches Bob 665 00:48:44.699 --> 00:48:50.099 build a beautiful new Harley store had some tough decisions to make 666 00:48:50.099 --> 00:48:53.800 what am I going to do to make the store Prophet teaches one while 667 00:48:53.800 --> 00:48:59.099 she put in Triumph and you put in India in the same and he's able to 668 00:48:59.099 --> 00:49:07.500 be able to because my understanding was that that hurt 669 00:49:07.500 --> 00:49:10.400 you as a Harley-Davidson dealer you you you had very specific 670 00:49:10.400 --> 00:49:13.300 guidelines that you was a dealer had to adhere to in terms of floor 671 00:49:13.300 --> 00:49:17.699 space and how much accessories and you you were restricted you 672 00:49:17.699 --> 00:49:22.699 couldn't have exhaust from Parts Unlimited vendor and you certainly 673 00:49:22.699 --> 00:49:26.300 couldn't have another brand go for a bit so it has hardly relaxed 674 00:49:26.300 --> 00:49:37.099 that. call and I forget exactly the 675 00:49:37.099 --> 00:49:41.400 sentence of our future is based on the dealers weren't successful 676 00:49:41.400 --> 00:49:52.000 Harley-Davidson successful one quick story won't tell her I said 677 00:49:52.000 --> 00:49:56.099 I said there's a playbook out there of a guy named Tom doll he 678 00:49:56.099 --> 00:50:01.099 was present in your Subaru to turn Subaru around I said I saw several 679 00:50:01.099 --> 00:50:06.699 videos on YouTube the National Auto Dealers Association I said I 680 00:50:06.699 --> 00:50:09.699 said I'm going to send you a link tomorrow morning so it's watching 681 00:50:09.699 --> 00:50:13.099 three days you really going to like what you see Tom Dahl did did 682 00:50:13.099 --> 00:50:17.099 a lot of the right things to get Subaru turned around and sent him 683 00:50:17.099 --> 00:50:21.000 a link he died I have text back in 10 seconds it says I already 684 00:50:21.000 --> 00:50:23.900 looked them up already watch them thank you so much for these this 685 00:50:23.900 --> 00:50:28.000 is this is this guy partnered with his dealers listen to his dealer. 686 00:50:28.400 --> 00:50:34.400 customers already ended up hiring the the marketing manager that ran 687 00:50:34.400 --> 00:50:41.300 super is marketing 2 months ago and anyways so Ozzy Julia was a 688 00:50:41.300 --> 00:50:48.400 dear friend of mine up Chicago who recently so I can probably get you 689 00:50:48.400 --> 00:50:51.699 on cell phone number if you want to talk to me like absolutely want 690 00:50:51.699 --> 00:50:55.500 to talk to takoda Ozzie Ozzie gets it gets me the phone number 691 00:50:55.500 --> 00:50:57.699 already talked to Tom they've talked I don't know how many times 692 00:50:57.699 --> 00:51:02.300 bunch of times and they compared notes and I'm sure that Tom told 693 00:51:02.300 --> 00:51:07.800 Artie about about Marcus it was just phenomenal marketing guy that 694 00:51:07.800 --> 00:51:10.099 are they just hired and you saw they just announced a whole new 695 00:51:10.099 --> 00:51:17.099 marketing program the New Life program and all just happened 696 00:51:17.099 --> 00:51:21.900 behind the Saints I always get the feeling that and I talked to 697 00:51:21.900 --> 00:51:24.800 dealers in and sometimes just talking to dealers I mean I'm no 698 00:51:24.800 --> 00:51:28.300 great businessman God knows I'm not like you but I just get. 699 00:51:28.300 --> 00:51:30.400 kind of like sweaty in the forehead thinking about the 700 00:51:30.400 --> 00:51:33.699 pressures and it seems that there is this adversarial relationship 701 00:51:33.699 --> 00:51:38.000 because the manufacturer just wants that stuff out the door and 702 00:51:38.000 --> 00:51:41.300 they're not really that concerned at least this is what I'm not 703 00:51:41.300 --> 00:51:44.400 really that concerned whether you can sell it this week or eight 704 00:51:44.400 --> 00:51:48.900 weeks from now so I mean what is your relationship with with Brands 705 00:51:48.900 --> 00:51:51.500 like having to deal with so many brands are they kind of all the 706 00:51:51.500 --> 00:51:55.500 same or they all kind of poetry is it is it combative is that just 707 00:51:55.500 --> 00:51:59.000 the nature of the Beast it can be and depends who's running the 708 00:51:59.000 --> 00:52:02.300 company at the time I walked away from Polaris which is phenomenal 709 00:52:02.300 --> 00:52:08.000 Grand but I hated their their their their business model I 710 00:52:08.000 --> 00:52:11.699 wasn't smart enough to figure out how to make money with them while 711 00:52:11.699 --> 00:52:18.300 I walk away from your dad's always running around putting out fires 712 00:52:18.300 --> 00:52:22.199 you try to put in processes and procedures to put some semblance 713 00:52:22.199 --> 00:52:26.000 of order and how things are working that you was down to your 714 00:52:26.000 --> 00:52:27.800 team and if you got some team members. 715 00:52:28.400 --> 00:52:31.500 something happens and their there life outside of work and then they 716 00:52:31.500 --> 00:52:35.500 got a crap at work affect the whole dealership so you're always 717 00:52:35.500 --> 00:52:41.300 trying to make sure the process of procedures things I join the 20 718 00:52:41.300 --> 00:52:44.900 group so that you know what Great Looks like that you might have to 719 00:52:44.900 --> 00:52:48.500 call you a while ago I mean a couple guys in the Sky Powersports 720 00:52:48.500 --> 00:52:52.599 down in Florida I mean phenomenal operation and the guys are hungry 721 00:52:52.599 --> 00:52:55.699 just just some of the smartest people I've ever met and the 722 00:52:55.699 --> 00:52:59.599 industry huge the cottage doors and we had to call you I wasn't 723 00:52:59.599 --> 00:53:03.699 smart enough to figure out how to do business with the car I know 724 00:53:03.699 --> 00:53:07.599 you mentioned the adversarial relationship changes over time so 725 00:53:07.599 --> 00:53:11.000 for Harley was always fantastic I bragged about what a great 726 00:53:11.000 --> 00:53:14.599 relationship I had with with people Harley I knew their names I 727 00:53:14.599 --> 00:53:18.000 have the cell phone numbers we talked all the time we ask each 728 00:53:18.000 --> 00:53:21.599 other questions we would help each other grow a business we're all 729 00:53:21.599 --> 00:53:24.699 interested in doing better doing better doing better I might Janet 730 00:53:24.699 --> 00:53:27.599 he's a great friend I'm like Mike's now CEO ending. 731 00:53:28.400 --> 00:53:31.800 you're a great guy great you know that you couldn't ask for a better 732 00:53:31.800 --> 00:53:37.800 leave but you know that it changes over time jochen zeitz destroyed 733 00:53:37.800 --> 00:53:43.400 destroyed the relationship with the mother company cut off all 734 00:53:43.400 --> 00:53:49.400 communication you know just just just just horrible but already has 735 00:53:49.400 --> 00:53:52.199 restored that needs restored very quickly it so are we did was right 736 00:53:52.199 --> 00:53:57.500 now I'm very happy we are extremely optimistic we are seeing 737 00:53:57.500 --> 00:54:00.300 our business has returned to some type of semblance of normality 738 00:54:00.300 --> 00:54:04.599 that we haven't had in years May between the covid pump and then 739 00:54:04.599 --> 00:54:08.800 close the cover if I'm already is restoring that trust because of 740 00:54:08.800 --> 00:54:13.099 the trust was gone Jay-Z was the most hated leader Harley ever in 741 00:54:13.099 --> 00:54:16.500 my cooler. I don't think all this deal lately that was just as much 742 00:54:16.500 --> 00:54:21.000 as he was a dealer friend it said to me gives me Southern he said 743 00:54:21.000 --> 00:54:23.699 you know George I can't do a Southern drawl he said that 744 00:54:23.699 --> 00:54:27.599 because I've never hated anybody in my entire life. 745 00:54:28.000 --> 00:54:33.800 why was the hate somebody it would be jokin seats and for a 746 00:54:33.800 --> 00:54:41.199 southerner to say that yeah that's one thing I've been privileged 747 00:54:41.199 --> 00:54:44.400 with with Harley the relationship with the motor company was so good 748 00:54:44.400 --> 00:54:47.500 and we get so many opportunities to get together as dealers they 749 00:54:47.500 --> 00:54:49.500 have the best training in the industry and that's something 750 00:54:49.500 --> 00:54:54.099 you'll convince is completely cut we get these rap videos to watch 751 00:54:54.099 --> 00:54:58.099 for 15 20 30 minutes and then do a multiple choice question and 752 00:54:58.099 --> 00:55:01.300 answer session every Department those days we used to have a bye 753 00:55:01.300 --> 00:55:06.000 week week and a half Long Hollow University that we would fly our 754 00:55:06.000 --> 00:55:09.699 team in our managers and they would have two days for parts in 755 00:55:09.699 --> 00:55:14.699 two days for sales a day for finance and it was awesome. Just 756 00:55:14.699 --> 00:55:17.699 education but it got all of us together we got to be great 757 00:55:17.699 --> 00:55:21.400 friends some of my best friends in the world are we friends because 758 00:55:21.400 --> 00:55:25.800 we spent our entire careers hanging out together at these 759 00:55:25.800 --> 00:55:27.900 training sessions at 2 dealer shows a year. 760 00:55:28.000 --> 00:55:32.800 334 days of peace and all this training weekly pl20 groups we 761 00:55:32.800 --> 00:55:35.500 spent a lot of time together on the Powersports store side you 762 00:55:35.500 --> 00:55:38.699 don't have it that much you have 20 group the other day that they 763 00:55:38.699 --> 00:55:41.900 were meeting but they are a lot more toys she and you don't you 764 00:55:41.900 --> 00:55:45.199 don't feel the galatian ship likely tied with Carly and I will 765 00:55:45.199 --> 00:55:48.900 say already bringing that back and makes me very happy about ready to 766 00:55:48.900 --> 00:55:54.699 get out of the friend zone. Will you know what kind of interesting 767 00:55:54.699 --> 00:55:58.699 fact from my perspective dealing with Harley-Davidson is is a ATV 768 00:55:58.699 --> 00:56:01.900 Rider being with the main focus is what we do all the business stuff 769 00:56:01.900 --> 00:56:05.599 like this but of course it's adventure riding and hardly makes 770 00:56:05.599 --> 00:56:08.699 a Pan America do you think I've been able to get anybody from 771 00:56:08.699 --> 00:56:12.099 Harley-Davidson on this podcast to talk about a Pan America it seems 772 00:56:12.099 --> 00:56:15.699 like it seems like a really conservative company I mean most 773 00:56:15.699 --> 00:56:18.599 brands yeah there's there's there's some carpet stuff you got 774 00:56:18.599 --> 00:56:21.300 to get through but you can usually find somebody we had the head 775 00:56:21.300 --> 00:56:26.099 designer from Royal Enfield was on. talking about stuff and I know 776 00:56:26.099 --> 00:56:28.400 they can't tell you what's going on behind the scenes I mean 777 00:56:28.400 --> 00:56:32.099 everybody gets that but but I was told this Harley-Davidson that you 778 00:56:32.099 --> 00:56:35.199 know I have to prepare the questions I wouldn't be able to 779 00:56:35.199 --> 00:56:36.699 ask anything that wasn't on the list. 780 00:56:38.099 --> 00:56:41.900 did Harley-Davidson lose its Swagger. 781 00:56:43.199 --> 00:56:46.699 I mean jochen zeitz just he took everything away everything it was 782 00:56:46.699 --> 00:56:50.199 great about Harley he took away because all he cared about was the 783 00:56:50.199 --> 00:56:53.699 value of the stock he only cared about showing a bottom-line 784 00:56:53.699 --> 00:56:57.199 profitability number and he chopped everything he could chop 785 00:56:57.199 --> 00:56:59.699 out of there I mean I don't know how many different times he would 786 00:56:59.699 --> 00:57:03.599 just go through and just fired in a hundreds of people you don't 787 00:57:03.599 --> 00:57:06.900 know already had to make some Cuts coming into this but you don't get 788 00:57:06.900 --> 00:57:10.500 the right size a company in right side production and he was just it 789 00:57:10.500 --> 00:57:13.900 was all about to drive in Stockton or are these like you have a stock 790 00:57:13.900 --> 00:57:18.000 value is important but or our part dealers on healthy none of this 791 00:57:18.000 --> 00:57:22.000 other stuff matters but it is a very difficult thing isn't because 792 00:57:22.000 --> 00:57:23.800 you've got to keep you know you want to keep the stock price 793 00:57:23.800 --> 00:57:25.300 healthy to keep the company healthy. 794 00:57:26.099 --> 00:57:29.400 but on the other hand Harley is a lot of a lot of debt they were 795 00:57:29.400 --> 00:57:32.400 selling out for the financial services beside of it which is the 796 00:57:32.400 --> 00:57:37.099 real the real the real money is made significant money and then 797 00:57:37.099 --> 00:57:42.099 you also have pensions and so it seems like I mean you're a 798 00:57:42.099 --> 00:57:44.699 businessman I mean this is it seems like almost a week and 799 00:57:44.699 --> 00:57:48.400 possible sort of formula that you have to come up with to keep 800 00:57:48.400 --> 00:57:53.199 everybody kind of sort of happy cuz it's a juggling act I mean any 801 00:57:53.199 --> 00:57:57.000 business of the juggling act and you got a balance things you know 802 00:57:57.000 --> 00:58:04.099 he's got he's got a really tough job ahead of us to shareholders 803 00:58:04.099 --> 00:58:07.599 important I'll go off on another tangent I wish they were done by a 804 00:58:07.599 --> 00:58:11.000 private I wish I could finally help by the right side of your 805 00:58:11.000 --> 00:58:15.300 house yes yes I don't want some shark has company coming in behind 806 00:58:15.300 --> 00:58:15.699 them up. 807 00:58:26.099 --> 00:58:30.599 these came in and he was only focused on the stock value of 808 00:58:30.599 --> 00:58:37.500 dealers as much money out of jailers and every every Rock he 809 00:58:37.500 --> 00:58:43.099 could squeeze money out of it that money out of to get to talk about 810 00:58:43.099 --> 00:58:50.199 where is your other leaders at a much more balanced approach the 811 00:58:50.199 --> 00:58:53.500 end of Keith Swain and I asked the morning first meeting we had as 812 00:58:53.500 --> 00:58:59.000 much of your decisions you based on a stock value and Angie saw he 813 00:58:59.000 --> 00:59:02.699 was a very direct. He said exactly who was thinking he would drop an 814 00:59:02.699 --> 00:59:06.900 F-bomb or two here and there and he was like his answer was F Wall 815 00:59:06.900 --> 00:59:10.699 Street because I do everything right running this company Wall 816 00:59:10.699 --> 00:59:14.199 Street winds too because what if I base my decisions on Wall Street 817 00:59:14.199 --> 00:59:16.699 1st and the company second because we all lose. 818 00:59:18.000 --> 00:59:22.599 well I think everybody wants a even if you're not a Harley guy I 819 00:59:22.599 --> 00:59:26.099 think everyone sees the value in a in a healthy Harley-Davidson I 820 00:59:26.099 --> 00:59:28.800 think you're such a there's such a part of the Landscaping 821 00:59:28.800 --> 00:59:33.800 motorcycling in love and I hate you really you know we want them 822 00:59:33.800 --> 00:59:36.500 to survive and then everyone feels the same way in and I wish you the 823 00:59:36.500 --> 00:59:39.099 best of luck and thank you so much for taking the time to talk today 824 00:59:39.099 --> 00:59:45.199 I'll see if I can get somebody from Harley Pan America somebody 825 00:59:45.199 --> 00:59:47.800 have a pickle in their ass cuz they all seem to be like that so 826 00:59:47.800 --> 00:59:56.400 I'm done trusting a charge very very easy to talk to he's just 827 00:59:56.400 --> 00:59:59.300 spread so thin right now but there's a lot of people want 828 00:59:59.300 --> 01:00:01.800 access to him and he's just eat and I haven't talked to him a 829 01:00:01.800 --> 01:00:05.000 whole lot more than I had back surgery I had discectomy on 830 01:00:05.000 --> 01:00:10.199 commission, but I think I left late last Saturday to get down to 831 01:00:10.199 --> 01:00:12.900 work and get some stuff done before we pull them away but and 832 01:00:12.900 --> 01:00:15.000 best of luck with your back so you just had back surgery as you 833 01:00:15.000 --> 01:00:17.500 mentioned and you've got to stand up now cuz you've been sitting for 834 01:00:17.500 --> 01:00:22.300 too long. and you need to go home and see if 835 01:00:22.300 --> 01:00:30.400 I can get somebody that would be beautiful using your sweat George 836 01:00:30.400 --> 01:00:34.300 thank you so much again thank you have a great day well well that 837 01:00:34.300 --> 01:00:37.900 does it for this week thank you again for listening to the lowdown 838 01:00:37.900 --> 01:00:38.500 radio show.