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Home->November / December 2008

Made In Canada

 

FOR INDEPENDENT BUSINESS OWNERS, 

MAKING A GO OF IT IN TODAY’S MARKET

IS AS CHALLENGING AS IT’S EVER BEEN.

 

O but we Canadians are a hardy bunch – could our readiness to hit the elements on a dirt bike, snowmobile or ATV have something to do with our survival instinct where business is concerned?  A number of Canadian manufacturers continue to thrive in these challenging economic times.

As you might expect of entrepreneurs, there’s an independence of spirit and drive in all of the owners behind these companies. But there’s also a great dedication to providing the best product to their dealers, regardless of borders. 

Randall and Don Bowman of Superclamp, for example, are inventors at heart. They’ve been creating after-market parts for snowmobiles since 1990, when the two invented Traction Rails, an aluminum product for the running boards of snowmobiles. They later redesigned the Traction Rails for improved performance and created Sno-Slips and Sno-Grips, made from polyurethane. 

“We see something, and we realize we can invent things to make a difference in the way you do things,” says Bowman. “I’m slipping off my running boards on my sled, and my brother and I start thinking about what we can do about it.”

Distributors and OEMs like Yamaha eventually picked up those Sno-Slips and Sno-Grips, and the brothers were on to their next invention: bumpers for Yamaha. And for the last ten years, it’s been the Superclamp snowmobile tie-down system – a piece of equipment that makes it safe and easy to tie down a snowmobile to the trailer. Superclamp has earned the company several awards for Most Innovative Product including second place at the 2008 North American Trailer Dealer Association trade show held in Texas. Two years ago the brothers introduced Superglides, a glide with traction knobs for snowmobiles and ATVs, which has experienced considerable sales growth ever since. 

“We’re two brothers trying to make a difference,” says Bowman. “We’re just two down-to-earth guys, bringing out products, and making an honest business.”

Because of the niche nature of Superclamp’s products, Bowman finds educating customers to be one of his main challenges. “Our products can’t just be put on a shelf,” he explains. It’s important that customers are brought to the product to explain how they work – which isn’t always easy for a busy dealer on the floor. 

But it’s pricing that’s his greatest challenge. “For a manufacturer in Canada, the hardest thing is educating people that these are Canadian-built products,” he explains. “We do care about pricing, but we’re held hostage by shipping, labour, energy costs. We’re trying our best to keep the prices down.”

Brenda Kennedy of the Vancouver-based BitchinGear agrees that keeping prices low is a challenge. Her women’s clothing line is manufactured locally in Vancouver. “But there’s a balance between quality and price,” she says. “I want to provide a quality product at an affordable price. That’s sometimes a challenge.” 

Kennedy created the clothing line almost four years ago. “I ride myself, and I used to go a lot of different events,” she explains. “There was never anything at those events for us. We’d end up getting door prizes that were men’s large shirts.” Along came BitchinGear – casual, motorcycle-inspired clothing like fitted tank tops and sassy V-necks.

One way that Kennedy overcomes challenges like distribution is through working with other companies, and that includes a recent deal with Honda Canada. She’ll be designing a Honda-exclusive line of women’s clothing called GearUp, appearing in stores this December.

In many ways, Kennedy is a one-woman show: she designs all of the gear, and deals with all of her manufacturers personally. By keeping on top of her contractors herself, she ensures that dealers receive consistent quality and keep coming back.

Al Harrison understands that attention to detail. The owner of Heritage Saddlebags in Vernon, BC, Harrison is a business of one, which means he handcrafts each leather saddlebag himself. Since he purchased the company in 2001, he’s seen a real shift in his market. “When I first started, we were 95 percent US sales, 3 percent Canadian, and 2 percent international,” he explains. “This year, we’re 99 percent Canadian, and 1 percent US.”

While the soft US economy has played a big role in that shift, it’s also due to Harrison’s focus on Canadian dealers. “I had a different philosophy than the previous owners. They didn’t believe Canada was a strong market, but when I took over, I focused on Canada,” he explains. He often works with dealers to include Heritage Saddlebags in the sale of a bike, thus increasing the take-home price of the bike for the dealer. 

“I show them how $200 worth of bags on the bike can mean $600 more for the sale,” says Harrison. And personal, one-on-one service is something Heritage can offer as a local Canadian company, says Harrison. “Any of our customers will say, Heritage looks after us.”

It’s that same honest reputation that Nathan Perry of the Alberta-based Midwest Canada has been building with his dealers. In fact, he sees Canada’s smaller market as an advantage for Midwest. “If you do good honest business, you get known to the entire market,” says Perry. “Our name is fairly well known now.” 

 Perry’s business specializes in bringing low price-point ATVs, dirt bikes and off-road buggies in from China to get first-time riders interested in the powersport industry. “Our goals are to bring a product to the market that’s affordable and good quality, so that first-time riders might have the option to buy a machine where they wouldn’t otherwise,” explains Perry. 

Perry works with dealers to provide all the tech support they need, including sales materials related to the equipment. And once a year, he brings dealers in for a networking event, which not only provides Midwest with the opportunity to provide technical and warranty information, but it also allows dealers to network with each other, and discuss any industry issues together. 

Bill Connelly at Hammerhead Canada also supports Perry’s assertion that it’s honest business dealings that keep a company strong in today’s economy. Connelly’s ATVs are designed to be easy to operate, but more importantly, safe. “I felt there was a niche for something in the market that was an ATV, but safe. There are a lot of adults and kids that aren’t qualified to be riding ATVs,” explains Connelly. “But with our vehicle, it’s very easy to operate, and not very easy to hurt yourself.”

Connelly feels that he’s able to keep his business strong in the Canadian market by ensuring that he continues to provide quality product to his customers. The machines are made in China, but Hammerhead is directly linked with the facilities over there. “Changes are done right away,” says Connelly. “Parts availability is amazing, and any changes required – I can have them done three weeks later on the product.”

Like the other Canadian manufacturers we’ve spoken with, Connelly believes that it’s just good business to be open and honest with his dealers. “We’re very fair, and we don’t sugar coat anything,” says Connelly. “It’s the type of business where bad news travels faster than good news.” That’s a sentiment that most businesses – from dealers to OEMs to importers can agree with. n