Larry’s Motor Sports builds demonstration track, expands

Talk about timing.

When Larry Neill decided it was time to leave the corporate world and open his own business in 1985, he chose to invest in an industry many believed was dying a slow death. The mid-‘80s were difficult years for the motorcycle industry; sales dropped so low the iconic Harley-Davidson company almost collapsed.

So when Neill bought a struggling dealership in Jefferson City, he did so on a wing and a prayer—a Honda Gold Wing, that is.

“In 1985 I bought the dealership when it was out of trust,” Neill said. “I wanted a shop, and I didn’t know anything about running a motorcycle dealership. I thought I could develop some software for the dealership. We had three employees.”

His first year in business, the dealership didn’t even reach a half million dollars in sales. Twenty-one years later, Neill said, he’s unhappy if the Larry’s Motor Sports annual sales don’t reach $7 million or $8 million.

So how did a guy who had spent a career in computer and software development and sales manage to turn things around so dramatically?

Neill didn’t know a lot about the motorcycle industry, but he did know about economics and sales. Furthermore, he always kept an eye on what his customers wanted and needed—and then found a way to provide it. Diversification was the key to building the bottom line and to creating a loyal customer base.

When he started out, Neill contacted Ed Lemco, owner of Motorcycle Industry Consulting services, who advised him that although sales of new motorcycles were down, the market for high-quality used bikes was holding steady. Neill spent nights and weekends hunting down used machines, which he then refurbished at his shop. He made it his goal to sell one used bike for every new model he sent out the door—and came very close to meeting that goal for several years.

“The thing that changed it for me was going to an Ed Lemco seminar,” Neill recalled. “His idea was to start looking for used bikes and buy them. That would at least create work for my mechanics. The industry at the time was really suffering. No one was buying bikes, and the people who already had them weren’t riding them. So I became a trader. And that’s what really saved my business.”

After Neill added used bikes to his inventory, he added a parts department well stocked with OEM and aftermarket parts. He began to offer on-site financing and motorcycle insurance, and he expanded his product offerings to include ATVs, scooters, three-wheelers and, most recently, utility vehicles.

Last summer, Larry’s Motor Sports opened a 200-acre off-road track just down the street from the shop. The track, brainchild of Neill’s longtime general manager, Travis Knorr, provides a much-needed local riding area for the store’s customers, who used to have to travel up to 30 miles to reach a place to go off-roading.

While the track was designed as a way to provide a high level of service to customers, the business is benefiting from increased customer loyalty, with existing buyers and with those coming along behind them. The kids who ride the trails today are the customers of tomorrow. Neill hasn’t had to do a lot of advertising for the new track; with the exception of a few flyers here and there, word-of-mouth has kept the tracks full.

On May 1, Larry’s Motor Sports acquired the Kawasaki Mule utility vehicle franchise from Town & Country Lawn and Leisure Equipment Company. This acquisition included all unsold vehicles, parts and accessories as well as repair tools and equipment. Town & Country owner Gary Poff will serve as a consultant for Larry’s Motor Sports for the first year to ensure successful market integration.

Neill is excited about the new offering: “See, the people who used to buy ATVs 15 to 20 years ago are getting old. They can’t ride them anymore because their backs are sore or their bodies aren’t as flexible as they used to be. So the industry came up with an answer: the Mule and the Rhino. Basically, they are two-person, four-wheel ATVs designed for the people who used to ride the one-person, three-wheel ATVs.” These individuals include hunters and farmers who have to cover long distances and want to do so quickly and conveniently.

The utility vehicles are versatile, too. Even though the Rhinos and Mules offer many of the features and conveniences of a 4-by-4 truck, they are classed as utilities, and the State of Missouri does not require titles or licensing for them. Neill showed off his new line at his annual Tent Sale held June 15-16.

Larry’s Motor Sports offers Honda and Suzuki ATVs, motorcycles and scooters; Kawasaki ATVs, motorcycles and Mules; and Yamaha ATVs, motorcycles, scooters and Rhinos.