The Head of Revzilla, CycleGear and Now J&P Cycles
Comoto is the parent company to Revzilla and CycleGear. It now is the parent company to J&P Cycles, too. I reported late last week on the acquisition of J&P Cycles. Now three of the big names in the online motorcycle gear and accessories space are under one roof.
I was lucky enough to have the company reach out and suggest an interview with Ken Murphy the CEO. Murphy is relatively new to the company. He came from a non-motorcycle background, but his success as a CEO is undeniable. He’s been CEO of Comoto for about six months now, so I was excited to talk to him about how things were going and the move to take on J&P Cycles.
Ken Murphy’s Time So Far With Comoto
Ken told me that the shift for him definitely came with some challenges but they were challenges that he somewhat expected and challenges that people have been able to help him overcome.
“Obviously, I’ve asked a ton of questions and will continue to ask a ton of questions and read as much as I can,” Murphy said. “I’m certainly a novice in the industry, but I’m really encouraged by what I see as opportunities not just for our business but the industry at large.”
He said that right now it’s just about trying to ascertain what is working really well and identifying what things the company can do better.
Murphy comes to the business without being a motorcyclist. Some of our readers expressed concerns about that. I myself was a bit concerned, but Murphy said he has his motorcycle license now and is actively shopping for a bike.
“I’ve been received relatively warmly by folks in the industry and I’m grateful for that,” he said. “I’m looking forward to riding more.”
It will be interesting to see if Murphy is active at company events or industry events and how involved he becomes with riding and riders. I got the impression he was genuinely interested in doing more riding.
While he probably didn’t have much of a choice as to whether or not he was going to get the license and bike from a PR standpoint, I wouldn’t be surprised to see Revzilla publicize the fact that he’s out there on two wheels in the future.
The Move to Aquire J&P Cycles
When it comes to the J&P Cycles acquisition Muphy said that the move to acquire the company made a lot of sense for Comoto as a supplement to Revzilla and CycleGear.
“First and foremost is strategically we look at J&P Cycles as very complementary to what we’re doing in the Revzilla business and the CycleGear business,” Murphy said. “There is some overlap between companies, but in J&P Cycles we see the clear market leader in the very important V-twin segment.”
He said that J&P Cycles has such deep market penetration into the V-twin segment that it just made sense. He said Revzilla and CycleGear could have invested heavily into that portion of the market, but there was no guarantee they would have achieved the same success that J&P Cycles has seen.
Speaking of Comoto as a whole, Murphy said he wants to dominate the space. “I want to be in first place in all of the segments, and we’re not there yet but this goes a long way towards helping us expand that market leadership.”
The idea behind Comoto is for the parent company to operate more or less behind the scenes. Murphy said he wants the brands to operate as they have for the most part, though there will be changes on the back end from an operational standpoint as needed.
“There’s such an appreciation and loyalty and passion in each of these brands and for each of these brands,” Murphy said. “To me, however many brands we end up having, I want to make sure we can protect and preserve the legacy attributes of those brands.”
Murphy did say he wants to offer improvements to customers whenever possible. One thing he pointed to was the fact that J&P Cycles distributes currently from a central location in Kentucky. Revzilla and CycleGear have warehouses in multiple areas of the country. By allowing J&P Cycles products to ship from those other warehouses, the customer can reap the benefits of having a distribution center close to them. This could mean shorter shipping times and other benefits for the end customer.
J&P Cycles sounded like it was a really natural fit. Murphy said the CEO of J&P Cycles wants to stay on with the business and that the company’s commitment to customer service is what drew Comoto to J&P in the first place.
Murphy also talked about expanding the brick and mortar side of the business. He said stores for CycleGear are an important part of the business and J&P Cycles has a few locations as well.
“If we can be where riders are, and they have a need that we can fulfill, we think that’s an opportunity,” he said. “The rumors of the brick and mortar apocalypse are probably a little overplayed.
Murphy said that with the integration of all three brands, Comoto will likely work towards directing Revzilla customers to a CycleGear store or a J&P Cycle store when that could be advantageous. He said having all of the brands under one roof allows for some cross operation benefits there as well.
“As I look at the future of Comoto, we’re certainly going to invest digitally and in our technology and backend logistics, but we’re going to continue growing in brick and mortar as well because I’ve seen firsthand the value that can come from that when you put the customer at the front of that decision.”
The Future for Comoto and Its Brands
In the short term, the future is fairly clear for Murphy, Comoto, and its various brands. The company will be working to make everything work well from an operations standpoint. When I asked if Comoto would acquire more companies, Murphy said he would like to approach acquisitions opportunistically.
Basically, if the right company came up and the timing was right and all the details made sense then Comoto might buy other companies. However, he didn’t say Comoto was looking at any other businesses at the moment.
“Probably what you’ll see unfold is some combination of building out segments and maybe buying our way into others as well,” Murphy said.
I also asked Murphy what he thinks of the technological changes happening in the industry with smart gear and electric bikes. While Murphy didn’t say much concrete here about Comoto’s plans he did say that the changes in the industry are on his and his team’s radar. “I think as a general rule of thumb, any new advance in technology is a win for the industry,” he said.
He went on to say that there may be some room for partnerships down the road, but right now the company will focus on its key competencies, which are gear and accessories.
It will be interesting to see if there are any notable changes for the customer-facing side of the business as things progress. I think Murphy sounds like a smart guy. He knows Comoto has three powerful brands and wants to let them flourish. My gut tells me that customers will only see improved service and better prices, but time will tell where things go.
If any new developments happen with Comoto or any of its brands, I’ll be there to report on it, and I’ll probably be bugging Mr. Murphy for another interview.
I had a chance to show Ken what Discover the Ride is all about and discuss how to grow it nationally. He we receptive and enthusiastic. All the best in the new era.
Excellent, when will you open a facility in southern California.
I want to work with best and help the industry and new riders grow. JP cycle is ok but they made me feel as if I was talking to older guys, Revzilla was a new fresh experience that attracts younger generation, ptodeuts reviesbas never seen before unles you go to trade shows, revzilla customer service and or sales department are so easy to talk to, no sales pressure, they will send you emails on some of the products you have questionszdx which I thinks is awesome but I wish they would try harder. I mean I ordered 2 sets of stage one kitsch and they never mentioned the exhaust gaskets, I had to place a whole new order for these gaskets. Yes I should have know but so should their sales or customer support. I recommend that before you take then order, toilet us know that these other items might be needed, which we help us the (customers) plus is a change for up sales. ABC of selling, always be closing
As markets evolve there are of course the inevitable changes in marketing that must go with it. The thing that has made J&P a leader in the motorcycle accessories market is as a result its founder’s credo that customer service comes before anything else – anything less from COMOTO will diminish the brand.
CEO’s in charge of newly acquired companies will typically dance around what changes they plan to make with forward sounding quotes and promises of an even brighter future. But like Harley Davidson, whose smaller dealers are in the throes of their own “bricks and mortar apocalypse”, it remains to be seen if Ken Murphy truly understands the will , passion and loyalty of J&P’s customers.
3 suggestions for Mr. Murphy.
* Do not fix what ain’t broke. J&P has managed to become the premiere motorcycle accessories giant it is by doing business with its customers with a ‘family feel’. As big as they are, one never got the impression that corporate dictates ruled. I can’t tell you how many times when I had an issue with an order that by the time I got off the phone with one of the customer service reps that I didn’t feel like they really listened to me to make it right. The little things often matter more than the big ones.
**Tech help. This is a biggie. Rather than trying to sell you something you don’t need, J&P’s tech help feels like an added value; something that’s there if you need it – and it doesn’t cost a dime. This is the goodwill that J&P offers and has caused many others to follow suit. Performance Machine Co. could take a lesson from J&P on this one. The way in which PM treats their customers is absolutely atrocious. Lousy response, arrogant managers and over priced parts. They make quality products but their ‘bedside manner’ is lacking.
***More ‘bricks and mortar’ stores would surely make a difference. Riders are an impatient bunch when it comes to needing parts. Most of us live in regions where good weather has a short shelf life. Putting a store in the northeast would surely satisfy even those who can’t wait another day and would prefer a good excuse to ride to their local shop instead. That said, J&P does a miraculous job when it comes to delivering. Don’t screw that up Mr. Murphy.