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September 10, 2010

The Business of SturgisA commerce-focused rundown of this past summer's rally and a little bit of news about next year's

Source: Big Twin Dealer

At Sturgis this year I focused on the business side of the event. I spoke to the major movers and shakers, and to small booth operators. I gathered numbers and drank Jack Daniels, so peruse this for what it's worth.

According to reports, rally attendance grew from 514,951 last year to 525,250 this year. However, folks passing through downtown Sturgis dropped 4 percent to 74,951 vehicles per day, which might explain the decrease in sales tax revenue collected, $1,013,017 compared to 2004's $1,103,396.



Mt. Rushmore broke all official records kept since 1990. Traffic at the monument increased 3.8 percent over last year to 82,466. The Crazy Horse Memorial, where Branscomb Richmond's charity ride ended, also felt a similar increase.

Even with fewer visitors, downtown Sturgis traffic was a nightmare. "People choose not to come into Sturgis due to the extreme traffic jam," says Samson Exhaust owner Kenny Price. Price holds the deed to 85 acres 20 miles away in Spearfish. He's working on a vendor row/party location that will pull more people toward Spearfish.

The Full Throttle Saloon, two miles east of downtown on Highway 34, added to the horrendous traffic. "It's no wonder folks stay in outlying areas," says motorsport artist Eric Herrmann.

Lazelle St.

In order to reach all the action at the Sturgis Drags, Buffalo Chip Campground, Full Throttle Saloon or Glencoe Camp Resort, there's only one escape from downtown Sturgis — Lazelle Street.



Lazelle houses the big dogs of the industry like Arlen Ness. "We did well, but I believe many riders were holding their wallets close to their chests," says Cory Ness. "We sold 12 of our new Ness motorcycles and lots of apparel, but not many hard parts."

According to V-Twin Marketing president Rick Raus, lower-priced customs in the $20,000 to $26,000 range did well. "Sky-high customs also sold, but not many in the $30,000 to $40,000 range," he says. Roger Bourget sold half as many bikes this year as he sold last year.

Another Lazelle Street aficionado is Bill Rucker, the president of Rucker Performance Cycles. "We partnered with Arlen Ness and sold all our new production bikes," says Rucker. "Each one sold for over $50,000 during the first two days of the event. I feel it's important to team up with someone to make the cost of Sturgis work." Rucker blames the high temperatures for keeping some riders out of town, but he plans to be back in a larger way next year.

A grouping of activity that worked extremely well surrounded the J&P Cycle building. Because it was one of the very few full-service centers still available, J&P was booked around the clock.

"I didn't do as well in the parts area since I partnered with J&P to sell and install my exhaust systems," says Kenny Price. "That allowed me to expand the beer bar at my Fire House Saloon and Buffalo Bill's casino. With Dennis Kirk selling parts online and J&P offering full service, I was free to go in alternate directions. I'll expand seating and build a beer garden next year." He also commented that it might take six years to build the highway 34 offramp to interstate 90.


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