Motonation's Bill Berroth: Don't back off promotions

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Bill Berroth, president of Motonation, on what he learned in 2010.

Dealernews: What is your gameplan for taking on 2011? What specific changes are you making?
Bill Berroth: Honestly, Motonation is planning on 2011 being another challenging year. That said, Sidi has done a great job getting us some exciting new price-point boots that should fit the market conditions very well. This is a major change from Sidi, which usually tries to build the best product possible with no consideration of price points. Other than that, we have found that Motonation’s limited distribution policy on the AGV Sport, Sidi and Vemar brands serve us well in a challenging economic environment.

DN: Based on those experiences, what are you going to do differently in 2011?
Berroth: We will continue to watch our overhead costs, while at the same time not backing off on the promotions that keep our brands in demand at the consumer level.

DN: 2010 wasn’t a great year for most of the industry, but how did the market or economic conditions specifically affect you or your business?
Berroth: Besides the affect of reduced sales, the single largest thing that affects us each year is the very weak U.S. dollar, which drives up our costs and makes it difficult to hold prices while still having aggressive promotions and dealer programs.

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