Accelerated purchases of cycles and scooters throttling-up potential sales for tire dealers

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People who ordinarily wouldn’t be interested in straddling a scooter or motorcycle are increasingly taking a second look at riding on two wheels rather than four. Tire dealers who are ahead of the curve could be in position to gain from revved-up demand for these types of tires and related accessories as the motoring public searches for more economical modes of transportation.

The volatility of fuel prices “has caused consumer mindset about motorcycles to shift,” says Lenny Sims, motorcycle editor and vice president of operations at the NADAguides division of the National Automobile Dealers Association.

“In our opinion, motorcycles have become attractive options as primary vehicles for daily drivers – due to their fuel efficiency – and are no longer considered just a luxury, ‘secondary-vehicle’ purchase,” he notes. This burgeoning backing of bi-wheeled vehicles is being seen among three categories of street bikes: Short-range commuters, mid-range commuters and long-range commuters.

“Not only do motorcycles offer drivers an economical daily driving option, there are many different types of bikes available in a variety of different pricing categories,” says Sims. “When it comes to motorcycling, consumers have plenty of choices.”

For the first time since 1981, Consumer Reports magazine has resumed its testing of motorcycles and scooters, citing a “rising interest in lower-priced two-wheelers that sip rather than guzzle gas and thousands of new riders on the road.” Results of a rigorous evaluation program are to be published in the March issue.

“Fueled by painfully high gasoline prices, 2008 saw many consumers looking for new alternatives to big-bucks fill-ups at the pump,” reports automotive editor Rik Paul.

“When fuel prices crossed the $4 per gallon mark, some consumers shifted gears and two wheels became a cost-saving alternative,” he says. “And, despite current low gas costs, interest in scooters and motorcycles may continue to increase, especially in urban areas where parking space is at a premium.”

According to cycle industry statistics, while overall 2008 sales figures were down 7.2 percent, scooter purchases zoomed-up an astounding 41.5 percent. (Dual sport bikes sales rose 22.8 percent as off-road and street bikes fell 30 percent and 5.6 percent, respectively.)

Tire dealers can benefit by stocking the required rubber and related components along with accessories and other add-ons such as apparel and the like. Education and safety programs can also be made available as beginners begin to populate the ranks of riders.

“Scooters and motorcycles can be a fun, fuel-sipping alternative for everyday commuting and they are certainly an enjoyable recreational choice, but consumers also need to consider their limitations,” explains Paul. “Proper protective gear is essential, especially in inclement weather. Even a moderate 40-degrees F temperature can feel like sub-freezing wind chill to a rider.”

As with cars and trucks, proper tire maintenance is particularly important for this segment.

When Jacques Bajer of Tire Systems Engineering, Inc. was inducted into the Tire Industry Association (TIA) Hall of Fame in 2006, he was widely lauded for his research into perfecting a Tire Pressure Monitoring System (TPMS) for motorcycles in addition to his groundbreaking role in developing the radial tire for American-made cars.

“I’ve been at it on and off since 1968,” says Bajer, who is now semi-retired. “I thought motorcycles would be a great candidate for TPMS. I took notice when people were buying these $20,000 Harley-Davidsons,” he explains.

“I attended a bunch of rallies and gatherings and I asked the guys who ride the bikes about this,” Bajer recounts. On motorcycles, tire pressure is much more critical than on a passenger car because you only have two tires.”

Of the 6 million-plus motorcycles registered in the U.S., more than 5.1 million of them are running on under-inflated tires, and under-inflation is the No. 1 factor leading to an imperfect ride, according to Jim Samocki, general manager at Doran Manufacturing, producers of the Doran 360M Tire Pressure Monitoring System for Motorcycles released to the market last year.

“Make sure you’re riding on properly inflated tires. Under-inflation leads to shorter tire life, decreased gas mileage and increased risk of accidents,” he points out.

“The Doran 360M is designed to be the most versatile, easiest to use motorcycle tire pressure monitoring system available” Samocki says. “Now riders can have peace of mind knowing that their safety and that of their passengers is assured. An unparalleled variety of mounting options allows the display to be mounted virtually anywhere – or even hidden with our optional remote indicator light.”

From a marketing perspective for tire dealers with a customer base that may not find a typical “cycle shop” to be their cup of tea, women are rapidly dismounting the past biker image of a rough male road warrior. Ten years ago, women comprised just 3 percent of motorcycle sales; by 2007 that figure had risen to 12 percent – possibly even as high as 18 percent.

“In the past two decades, we’ve seen a dramatic increase” in the number of female riders embracing this mode of transportation, says Leslie Prevish, women’s outreach manager at Harley-Davidson.

The iconic motorcycle manufacturer has designated May as the first-ever Women Riders Month. It will be staging a series of events designed to “celebrate the number of women who have already hit the open road on two wheels, as well as encourage even more women to get behind the handlebars.”

Bajer suggests that tire dealers conduct an appropriate amount of market research and obtain the necessary technical expertise before venturing too far into the motorcycle realm, lest higher demand for bikes decline along with gasoline prices. “I’m more interested in scooters and mopeds than these big muscles from Harley-Davidson,” he observes.

Competition from motorcycle dealerships and other cycle-centric shops stocking tires in your area should be taken into account, says Bajer. The climate needs to be considered as well; bikes are more popular where and when the weather is warm.

“It depends on the dealer” and the business’ available resources, he says. “If the dealer is well-respected in the community and has specific knowledge of the motor cycle systems – and they’re systems, not just tires – then fine,” Bajer continues, chuckling about how “that’s a loaded question.”

Because of treadlife issues, tires for two-wheeled vehicles require more frequent replacement than those affixed to four-wheelers, he notes. “A motorcycle tire dealer has never had any trouble selling tires.”

For more information, visit www.NADAguides.com, www.ConsumerReports.org, www.doranmfg.com and www.harley-davidson.com.