performance report - Motor State Distributing

september/october 2005 • vol. 15.5
PERFORMANCE REPORT
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DON’T GIVE AWAY THE STORE...
A
n old time grocer we once knew used to always
say, “Do what you must to sell something, but
don’t give away the store.” He was of the mindset that a sincere effort to compensate a customer
for some wrong did not have to give the appearance of being desperate. He was right. Desperation makes people - and businesses - do
strange things. The auto dealer somewhere in
the Midwest who recently took up residence
in a pup tent on the second story roof of his
dealership, vowing not to come down until
his dealership sold 100 new cars
and trucks, is a perfect example. This guy eventually came down from
his perch, but he did
not come anywhere
near his goal. Another prime example of desperation involved the
appliance dealer
who was offering zero down/
zero interest for
three years on
new refrigerators and,
as an added perk, was
throwing in a new microwave and a small color TV
if they’d close the deal before the end of the week.
We don’t know if he ever recovered his initial investment, much less making any profit.
We could go on and on with examples of gimmicks born of a desperate need for business survival over the years, but why belabor a point?
Besides, all past attempts at salvaging a business
pale in comparison to the current “back to the
wall” deals being offered by the auto manufac-
turers through their dealership networks. We’re
referring to the latest efforts of the auto industry
to revitalize the sales of new cars by offering their
deepest discounts, formerly only reserved for company employees, to everyone who finds their way
through the showroom door. One
manufacturer has
gone even further,
offering a $3,500
rebate on top of
the employee
discount.
We’re not
qu es ti o nin g
their motive
here. It is painfully obvious.
New car sales
have been “in
the tank” for a
long time and
the manufacturers are desperate to move
product out. What we do question, however, is if anyone in
the marketing departments of the
big three even has a clue as to why they’re
in this predicament in the first place. We are also
somewhat puzzled by the means the auto industry has chosen to accomplish this goal. Did they
have to go this far? Were they remotely aware of
the potential danger of a move like this? Will any
resulting sales offset all the possible future liabilities they have incurred? Only time will tell, but
one thing is certain: this sales ploy will do nothing to strengthen the American auto industry’s
reputation or its already tenu- (Continue on page 2)
INSIDEINFORMATION
• Information and Viewpoints •
Don’t Give Away the Store ............... 1, 2
• New Product Showcase •
Speed-Pro, Intercomp, and more .... 3, 4
• Featured Product •
Allstar Ramhorns .................................. 4
• Charlie Jobber •
A Matter of Concentration .................... 5
The Motor State Performance Report is compiled and published bi-montly by the
Motor State Distributing Advertising Department Staff: John McLellan • John Berglund •
Matt Hauch • Jim Kaekel, Jr. • Michael Kalling • Thomas Michaud • Robin Beachy
• Internal Affairs Dept. •
MAP (Minimum Advertised Pricing) ...... 6
• Manufacturer’s Spotlight •
Bully Dog (Diesel Performance) ............ 7
INFORMATION & VIEWPOINTS
Don’t Give Away The Store...
ous ranking among world auto makers. A more
detailed look at this situation is in order.
It’s for sure that someone in the auto industry
has been doing a poor job of targeting potential
customers. With over sixty percent of their inventory occupied by trucks and sport utilities, all with
voracious appetites for gasoline, a whole dump
truck full of incentives is not going to entice a
new car buyer during these times of outrageous
gas prices. Storage lots full of 25-35 mpg sedans
and vans might sell better, but these are not the
surplus vehicles they are stuck with. With gas
prices near three dollars a gallon, and it costing
a hundred dollars just to fill the tank, we find the
manufacturers risking their integrity attempting
to sell undesirable gas guzzlers. If a person needs
a toothpick, a 2x4 just won’t work, no matter how
cheap the price.
We can’t help wondering, too, how the employees of the auto manufacturers feel about the extension of one of their discounts to the entire population. While it presents a good discount to the
customer, the offer takes money out of the pocket
of the people who build the cars. At a time when
the biggest of the big three is crying about the
cost of employee benefits, it seems strange that
they’ve then taken one of those same benefits
and offered it to the whole world. Even if they sell
thousands of cars with this plan, will it offset the
selling of their employees “up the river?” We’d bet
that they have not even thought of the permanent
damage they have done to employee loyalty by
unceremoniously negating a heretofore valuable
perk.
Aside from employee concerns, what about the
perception of pricing that is being formed by the
buying public? If the assumption that a manufacturer is never going to deny itself a profit holds
forth, and that manufacturer is discounting the
living daylights out of a product in order to sell it,
what does that say about the original asking price?
Was it too high? What will happen to future sales
if the prices revert back to former levels?
There are other concerns as well. Some automobile dealers with good, long standing reputations,
through wise management and wiser choices of
products to sell, can sell considerable numbers of
cars at regular prices, regardless of market conditions. What happens to their solid standing with
their customers when the idea of employee discounts for all comes along? What do they tell their
loyal customers about past practices?
Another area of concern is image put forth to
2
(cont. from page 1)
the other auto manufacturers. It comes down to
a matter of “saving face” among competitors. In
any fraternal type of setting, whenever one of the
members starts jettisoning everything for much
less that it’s worth it is usually an indication that
this member is in dire straits of one kind or another.
If such an informal, brotherhood type of relationship exists among the manufacturers, wouldn’t it
seem apparent to all that one of their “brothers” is
having problems?
So, from any viewpoint, offering employee discounts may not prove to be a very wise business
decision. The employees lose, the dealer network
suffers, the public becomes even more suspicious
and, worst of all, manufacturer integrity (not necessarily a priority anymore anyway) gets thrown
right out the window.
We can be thankful that as members of the
speed equipment “fraternity” we have not had to
take the “bare bones” approach. Hopefully we will
always be able to survive without “giving away the
store.” We think all would agree that when the
store goes on the block, it takes a lot more with
it.
MOTOR STATE PERFORMANCE REPORT
NEW PRODUCT SHOWCASE
Speed-Pro, Intercomp, MSD, Moroso
Speed Pro Duroshield Coated Bearings;
CTS Complete Timing Sets; Hellfire Rings
Duroshield, a polymer coating that reduces friction, is now available
on Speed-Pro Competition Series engine bearings. The micro-thin Duroshield layer consists of molybdenum disulfide in a polymer base that
offers outstanding protection against dry starts and extreme conditions
where the oil supply may be interrupted. The coating bonds to the bearing surface and actually absorbs oil, assuring constant lubrication even
under the most severe high performance usage.
The Duroshield Competition Series bearing is an overlay composed of
Federal Mogul’s exclusive H-14 material bonded to a 1020 AK steel backing
for unsurpassed durability. Duroshield main bearing sets use a patented
contoured flange for enhanced thrust-load capacity and a 3/4 length oil
groove for maximum lubrication.
Speed-Pro now offers a complete, all-in-one timing kit that helps get
the job done right, the first time. Everything needed to do a complete,
first class timing repair including Speed-Pro cam and crank sprockets that
mesh precisely, alloy steel chains that have been dynamically tested for
maximum durability, Fel-Pro gaskets for a perfect seal and National oil
seals for precise fit and long lasting performance. The entire kit is conveniently blister-packed.
Blowers, turbochargers, nitrous oxide injection and nitromethane all
enhance combustion to remarkable levels, but not without exacting a
terrible toll on piston rings due to much higher cylinder temperatures.
Speed-Pro’s Hellfire piston rings can take the heat, literally. Made of super
tough HF479 alloy, Hellfire rings will retain tension under the most brutal
operating conditions and do so without flaking. Sharing space in the Hellfire sets are Speed-Pro’s world famous SS-50 oil rings which keep combustion chambers dry to prevent the detonation that can spell sudden death
for rings and pistons. For Pro Mods, Pro Street, Pro Stock and Top Fuel
drag race engines, Hellfire rings are the way to go.
Intercomp Shock Dynamometer
INT102062-S
All shocks are not the same. In fact, even shocks that are supposed to
be the same are not always right on. No one knows this better than racers
who depend upon a shock performing up to specifications, race after race.
Intercomp’s new shock dynamometer can compare and evaluate shock
absorbers with regard to their rebound, speed, time and temperature and
it’s adjustable for 1.5”, 1.75”, 2.00” or 2.25” strokes. Software is included
and the fixed speed motor unit is compatible with Windows 98, NT, 200
and XP.
MSD Digital E-Curve Distributor
Now, street rods and restored muscle cars can benefit from a distributor with greater spark, an electronic timing curve and an adjustable RPM
limit thanks to MSD and their new Digital E-Curve distributor. Completely
electronic, there are no springs, weights or bushings and all adjustments
are performed right under the cap. Rotary dials can be used to adjust up
to 100 advance curves, making it among the most (Continue on page 4)
accepts:
SEPTEMBER-OCTOBER • 15.5 • WWW.MOTORSTATE.COM
3
NEW PRODUCT SHOWCASE
Speed-Pro, Intercomp, MSD, Mororso
(cont. from page 3)
versatile street performance distributors ever. The adjustable rev limiter
can be set at a point where maximum power is realized, but the engine
is safe from over revving. The E-Curve’s high output module vastly
improves performance. Right now, the CARB people are looking the ECurve over with regard to giving it their nod of approval.
Moroso Ultra 40 Race Wire
for Chevrolet LS-1
MOR73535
Moroso has added the Chevrolet LS-1 to the list of engines covered by
their superb Ultra 40 Race Spark Plug Wire sets. Ready to install, the sets
are pre-terminated.
CHARLIE JOBBER’S NEW PRODUCT SHOWCASE
The Ramhorns of a Dilemma
Few automotive components have enjoyed more
exposure than the Chevrolet “ramhorn” exhaust
manifolds. Introduced on the small block Chevy V8
in 1955, these venerable manifolds are as recognizable as the engine itself. Every passenger car, truck
and Corvette on up into the late sixties wore
a pair of these symmetrically designed,
center dump manifolds, whether the vehicle was equipped with a single or dual
exhaust. They were not world beaters in
the exhaust flow department, but they were better
than most factory iron manifolds, they were plentiful, and they even cleared the frames in early street
rods fitted with small blocks.
Ramhorns have always been very popular
with racers running small block Chevys where
stock intake and exhaust manifolds were
required. The only problem is that these manifolds
are extremely hard to find ...and when a set is located, the price tag
is likely to be a “buck and a half”. Then, there’s a better than even
chance that because they are over 40 years old and very brittle, they
will be broken during the removal process. Fortunately, rarity and
fragility need no longer concern those looking for ramhorn manifolds. You just have to love those clever folks at Allstar Performance.
They see a need and they do their darnedest to fulfill it. This is
exactly the case with the ramhorn shortage. Allstar has introduced
an all new, cast iron Ramhorn Exhaust Manifold (#ALL34200) that
looks for all the world like the original, but offers better flow and
additional steering gear clearance to boot. Circle tracksters will sure
like this, but I can’t help but think that the guy building a traditional
hot rod might be tickled to get a pair too. ©MSR
4
MOTOR STATE PERFORMANCE REPORT
CHARLIE JOBBER
A Matter of Concentration
W
hen I
was a
kid (a long time ago),
I used to religiously watch a quiz show called
Concentration. Hosted by Hugh Downs (yes,
that really was a long time ago!), the show’s gimmick was a giant rebus puzzle hidden behind 36
numbered panels and arranged in rows of six on
the game board. Also hidden beneath the panels, between them and the puzzle, were names
of 17 paired objects and two wild cards. The object was to call out two numbered panels which
would open to reveal the items hidden behind.
If the contestant got a match, he won the item
listed and the squares opened further to
reveal puzzle clues. If there was no
match, the numbers
reappeared
and
it was the other
contestant’s turn.
As the game
progressed,
players would
call upon their
powers of concentration to
remember the
location of any
one of a pair (or
one item and
a wild card) that had already been uncovered. As more
matches were made, more little snippets
of the rebus puzzle would appear. The winner
was the contestant who could see enough of the
clues to solve the puzzle which was usually a familiar phrase or quote.
I didn’t realize it when I was ten or so, but this
game was preparing me for a pastime I enjoy to
this day, vintage tin hunting. I don’t know how
many partial cars or trucks I have seen over the
years that have been filed away in my memory
bank to eventually get matched up with a like
vehicle, either a mile or so down the road or a
thousand miles away, that can supply the missing
parts to make one whole vehicle. Concentration
has been gone for nearly 40 years and that’s too
bad, because these days it seems that even the
desire among the younger crowd to match up old
car components for hot rod projects is gone too.
I think the future of our industry depends upon
all of us doing something about this lack of enthusiasm among many youngsters.
I pulled one of these “Concentration” type
match-ups off a while back for a friend who was
looking for a project car for his son. On the way
to work one day, I had spotted a ‘67 Belvedere II
four door sedan sitting by the road with a crudely
lettered “4 Sail” (sic) sign in the window. A clean
old car, it had straight sheet metal and excellent
chrome, but with four doors it held little fascination for a muscle car buff. As a parts donor for
the equally nice Belvedere two-door hardtop
with missing doghouse that I’d seen in Indiana a
month ago, it was perfect. I made a quick call to
the guy in Indiana and, yes, the hardtop was still
available and, even better, the price had dropped.
I jotted all the pertinent information
down and passed it
along to my buddy.
As I had hoped, a
winning match had
been made and
Senior and Junior
were both thrilled
at the prospect of
cloning a GTX.
I was basking in
the glow of that
successfully
executed “adoption”
when the sight
of a clean, white
Chrysler LeBaron
convertible, sitting
forlornly in a field,
gave rise to a similar
adoption idea. This car was minus the whole engine and front wheel drive, but the body looked
like new. I remembered that kits were available
ten years or so ago to convert this car to a V8, rear
wheel drive configuration. Suddenly a light bulb
went on and that old Concentration game board
was glowing brightly once more. What if someone were to create kits that made it possible to
swap a V6 or V8 engine with rear wheel drive into
a choice front wheel drive car when the original
drive setup expired?
Before you go and brand me as an outright lunatic, hear me out. I think the idea has merit for
a number of reasons. One is (Continue on page 8)
SEPTEMBER-OCTOBER • 15.5 • WWW.MOTORSTATE.COM
5
INTERNAL AFFAIRS DEPARTMENT
A Closer Look at Minimum Advertised Pricing (MAP)
I
n November 2002 we began publishing “market competitive” suggested retail prices in the
Motor State Wholesale Price Guide to help dealers cope with the mail order and Internet world.
During the overview of our MVP (Market-ValuePricing) program we explained how we set Suggested Selling Prices. We also mentioned that
manufacturers constantly hear jobbers’ laments
about reduced profitability and increased market
competition. Now, more and more manufacturers are taking action to restore or maintain the
perceived value of their products and the implementation of MAP (Minimum Advertised Pricing)
is becoming more commonplace.
MAP, in a nutshell, states if warehouses (and
many times jobbers) distribute a product, they
cannot advertise this product at a price below a
set minimum. How a manufacturer defines, communicates and enforces this type of policy varies
from company to company, but their actions are
usually based on an interpretation of both Federal and State Fair Trade Laws. MAP is not new,
nor is it unique to our industry. Other consumer
goods such as stereo equipment, boat accessories and photography equipment have been governed by this policy for many years. An extremely hot issue, MAP continues to grow in popularity.
In 2002 only 3% of Motor State’s vendors had a
MAP program. Today, more than 13% have some
type of MAP policy in place.
Although there are startling similarities, do
not confuse MAP with price fixing which is illegal.
SEMA recently conducted a live web seminar on
MAP to set the record straight. Participants came
away with a better understanding of how minimum advertised pricing works, how policies can
be established, and how they can be beneficial.
To quote from the presentation: “Every manufacturer has an absolute right to select with whom
they will deal, and to announce in advance the
terms and conditions upon which they will do
business.” Manufacturers must get their policies
right, though, ... the consequences of doing it
wrong, with regard to federal laws, can result in
fines of up to a million dollars for each offense.”
There are many misconceptions about MAP.
Many believe that a manufacturer can simply
write a policy and ask that the WD’s or dealers
abide by their terms. This is not always the case.
Unless manufacturers have co-op funds directly
tied to their MAP programs, such programs are
illegal. Our research reveals that at least one of
every fifty companies (2%) with a MAP policy has
no co-op program in place whatsoever. A manufacturer can monitor warehouse distributors and
6
advertised pricing as per the terms of their MAP
policy, if they have a co-op agreement. Manufacturers can also police customers if their source for
the manufacturer’s product helps build the marketing vehicle for that product. Examples would
be web site store templates or direct consumer literature with the dealer’s business name, address,
phone number and pre-printed pricing. Only a
small percentage of performance and accessory
dealers market product in this manner. The law
states that unless the advertisement method falls
within these categories, the manufacturer has no
direct recourse and dealers are free to advertise
the product for any price they wish.
On occasion, some vendors have chosen other
means to get their MAP point across and this has
often become very ugly for the WD or jobber. In
some cases, a “cease and desist” order or similar
document has been issued to prohibit unauthorized use of a trademark, logo or other proprietary
item in an effort to control the advertised prices.
There are also some manufacturers teetering on
the edge of Minimum Resale Price Fixing. Once
that line is crossed, it becomes illegal and nobody wins.
Sometimes, a manufacturer can take the MAP
philosophy a bit too far and limit how a warehouse distributor can advertise product pricing
to its dealer network. Ever see a wholesale “sale”
publication where the price is “Too Low to Print”
or you must “Call for Sale Pricing”? This happens
when the factory forbids printing of any “sale”
pricing for either a specific product or the entire
product line. This restricts the WD and forces the
jobber to telephone or log in to a web site to obtain pricing. This scene is changing as many vendors now stipulate that a WD can, with factory
approval, promote products with a “lower than
minimum” price, for a limited time, once a year.
This promotes “healthy” competition among
WD’s so they can plan and strategize prior to, and
throughout, each selling season.
Most industry leaders take the position that
MAP programs do more good than harm. We
agree and intend to support MAP as long as
it helps our dealers. View a full list of vendors that have MAP Pricing and learn more
about their policies by logging on to www.motorstate.com. If you have any questions about
this topic, please contact our Pricing Manager, Scott O’Toole, at 800-772-2678 or e-mail at
sotoole@motorstate.com. ©MSR
Disclaimer: This article was written using data obtained from a variety of resources. It is intended
for informational and educational purposes only. This information may or may not apply to you or to your
company as laws vary from state to state and country to country. Please consult professional legal advice
for any specific questions as to how MAP pricing policies effect or relate to your business.
MOTOR STATE PERFORMANCE REPORT
MANUFACTURER’S SPOTLIGHT
Bully Dog ... #1 In Diesel Performance
Bully Dog Technologies offers a full line of
high quality diesel performance products for
Dodge, Ford and GM diesel vehicles. Relying
upon a highly trained, knowledgeable staff,
Bully Dog strives to the utmost to serve the
customer’s needs. Bully Dog’s business is keyed
exclusively to the needs of diesel pickup and
SUV owners who wish to maximize the performance of their vehicles. Innovative engineering,
dedication to customer service and high quality products have made Bully Dog the leader in
diesel performance.
Officially established as a company in 1999
with introduction of propane induction systems
for diesel engines, Bully Dog’s reputation for
innovation actually began years earlier, based
upon a passion for safely increasing horsepower
in diesel farm tractors and pickup trucks with
propane. Today, a talented electrical engineering staff with 46 years of combined experience
works diligently to provide customers with the
most functional diesel performance tuning by
concentrating primarily on increasing torque,
horsepower and mileage.
Bully Dog’s engineering diligence has been
responsible for the development of the Outlook
In-Cab Monitoring System; the Power Pup, with
or without the Outlook; Rapid Power; Dyno
Dominator; Torque Dog; and Rapid Flow Exhaust
and Cold Air Induction systems.
Power Pup Downloader
The Power Pup re-flashes the
vehicle’s ECU to create four distinct power programs: stock;
towing (50-70 horsepower increase); performance (90
horsepower); or extreme
(130 horsepower). Stock
programs can be retained so vehicle can be
returned to original settings at any time. Power
Pups are available for GM, Dodge and Ford diesels. Installation is effortless; just plug into the
OBDII port.
Rapid Power for Towing Safety
Specifically designed to
increase towing performance,
driveability and mileage, the
Rapid Power can add from 40
to 103 horsepower and as much
as 239 lb.ft. of torque in minutes - on the fly.
Tranny Smart Software is included to protect the
automatic transmission from damage. Rapid
Power is available for GM Duramax and Ford
Powerstroke diesels.
Dyno Dominator
If a maximum of 171 horsepower and 399 lb.ft. of torque
sound like an exciting trip, the
Bully Dog has just the ticket
with the Dyno Dominator. This is the controller
for the “extreme” trucker. As Truckin’ Magazine
said, “Bully Dog packs incredible horsepower in
a small, innocent box.”
Torque Dog and Torque Dog Plus
These are for the Dodge Cummins diesel enthusiasts. The
Torque Dog, for 1998.5-2002 24Valve engines, plugs into the data
port link and boost sensor and is
adjustable on the fly with 30 and
65 horsepower choices in addition to stock. The
Torque Dog Plus is fully adjustable and can add
up to 140 horsepower to the 2003-4 Dodges
with Common Rail Cummins engines.
The Outlook In-Cab Monitor
The Outlook In-Cab Monitor
provides high tech performance
and compatibility with Rapid
Power and Dyno Dominator performance modules as well as all
diesel chips, modules and downloaders on the market. The Outlook takes priority access of the engine and offers control over
power levels with the touch of a button. De-fueling points can also be set based on exhaust
temperatures. When a pre-set exhaust temp
level is reached, the Outlook will engage and cut
back on fuel to prevent excessive exhaust gas
temperature (EGT).
Rapid Flow Air Intake and
Exhaust Systems
Reduction of back pressure and
exhaust temperature can boost
the output of a diesel engine.
Rapid Flow systems have
gradual mandrel bends and can
add up to 20 horsepower and reduce
exhaust temperatures by as much as 200
degrees. Systems are available for GM, Dodge
and Ford diesels.
Replacing the stock air box with a metal heat
shield and conical filter will increase torque,
horsepower and fuel efficiency while lowering
EGT’s. Filters are reusable and Bully Dog offers a
cleaning kit (#BUL229000). ©MSR
SEPTEMBER-OCTOBER • 15.5 • WWW.MOTORSTATE.COM
7
CHARLIE JOBBER
A Matter of Concentration (cont. from page 5)
that the really nice, stylish front wheel drive cars end up in the wrecking yards way too soon because
of computer troubles or prohibitively expensive repairs to their quadruple underhead cam, multi-valve
engines. In yards all across the land they languish, row after row, with undamaged bodies and near
perfect interiors, awaiting the parts scavengers and, eventually, the crusher. Another item for consideration is that most of the suitable transplant engines, V6 or V8, now come from light trucks and SUV’s
which account for more than 60% of all vehicles on the road...and in the wrecking yards. The supply of
potential used swap power is plentiful and there are tons of new crate engines available too. With the
wealth of aftermarket conversion wiring harnesses currently available, the idea becomes more feasible
by the minute.
The kit would have to include some type of sub-frame structure - or two, one front, one rear - that
would bolt into the “tub” of the car to accommodate front and rear suspensions as well as engine, trans
and rear axle. Narrowing rear ends is not as daunting as it was years ago. Several companies now specialize in this process and their products speak for themselves. The whole idea smacks of unabashed,
traditional hot rodding taken to a new level doesn’t it? Was the idea of a Model A with a V8 any different
in concept sixty years ago? I don’t think so.
I firmly believe that something like this must take place. New hot rodders need something affordable
to build. Otherwise, I’m afraid that the enthusiasts of the future will all own gull-winged, purple neon
bedecked, strobe light illuminated little whizzers like I saw at the burger joint a few weeks back. The
only high performance item on that whole car had to be the alternator! While cars like this compact
and “rat rods”as well are currently viable segments of the overall hot rod market, we can’t let either
become the whole show. A healthy, traditional hot rodding “core” can absorb new ideas that come and
survive the ones that go, but if those that are short-lived take over the whole game, hot rodding will
become extinct in no time.
Alright Hugh...let me look behind numbers 7 and 21. Ah yes, a Wild Card and a V8 into a Sebring
package. I’d call that a winner! ©MSR
8300 Lane Drive • Watervliet, Michigan 49098 • www.motorstate.com
Toll Free 800.772.2678 • Phone 269.463.4113 • Fax 800.772.2618