Article: Is Harley-Davidson Over The Hill?

 I'm sure this is old news, but it caught my eye today:

http://articles.moneycentral.msn.com/Investing/StockInvestingTrading/is-harley-davidson-over-the-hill.aspx

The Lizard

 
http://articles.moneycentral.msn.com/Investing/StockInvestingTrading/is-harley-davidson-over-the-hill.aspx

Harley has screwed themselves out of the market.  They thought they were
selling the motorcycle equivalent of sports cars, or worse, thought they
were selling a "lifestyle", believing their own marketing bullshit.

They marketed their bikes towards middle aged folks with middle-age anxiety
and tens of thousands of dollars of cash to blow on pretty.  Meanwhile,
those who, like me, were just starting out, didn't want to pay $20k on
something that's very likely going to get dropped once or twice.  In fact,
there's no telling whether folks even want to ride until they get some time
on a bike.  I paid much more than I wanted to for my bike, a little over
$5,000, however, having seen how well it still runs after nearly 60k miles
of abuse, I'm pretty much sold on Yamaha.  Also, they're 5 year unlimited
mile warranty on Royal Stars is comforting.

I know hard-core Harley fans see $20k in their bikes, but I don't.  Compared
to $10k for high end Japanese cruisers, HD technology doesn't stand out, the
workmanship is on  par or less (depending on who you ask), and, though I
haven't ridden a Harley, I can't imagine the ride being twice as good in
comfort, handling, and so on.

Harley's do have an awesome look, but that look can be had on Japanese bikes
as well, at far less cost.  Mine is often mistaken for a Harley, though not
by HD riders.

The resale value seems excellent, however, this actually hurts HD as a
company, since it's less likely new riders will be introduced to their
brand.

A friend from work bought one, paying $16k for a repo, and it had half the
features and chrome doodads mine has.  He always wanted a Harley, and I get
that.  However, after a couple months he regretted buying it, since now he
had payments to keep up and the initial awe had worn off.

Also, and this really disturbed me, he said the dealer told him any work
performed on the motorcycle outside of a Harley dealership would void the
warranty.  My friend is an honest sort, so I believe him, but I don't
believe this is enforceable in California (he bought it out of state).  Even
if it isn't, even if the salesman was a lying sack, it's still stupid greed
that will most certainly hurt HD.  Whenever he repeats this, folks will
think twice about buying their brand.

Although I highly admire the Harley's some of my co-workers ride, I don't
see myself ever buying one.

When I feel the need (and the money in my pocket) to upgrade my ride, I'll
either buy a new Royal Star (if they adopt EFI and such) or a Honda
Valkyrie, which I fell in love with the first time I saw one.

CS

 
I've been hearing this for 50 years.  I even bought into it myself when I
was too young to know any better.  But H-D continues to prosper.

 

Exactly.
Sure the H-D market is down but so is everyone else's.
Is the H-D share of the shrunken market less than it was of the healthy
one?
I don't know but I would guess not.

As for the previous posters statement comparing a "20k" H-D to a "10k"
metric, that too is bullshit.
A $20k H-D is pretty near a top of the line touring model. A $10k Metric
is just an average metric.
More exageration to try to make a point.
It gets tiresome.

Being on the inside to a point I get to see who is buying the bikes, the
parts and the merchandise and guess what, it's as big a cross section of
the public as it ever was.
We still get lots of younger buyers, we get move ups, we get lifers.
Professionals, truck drivers, salesmen, saleswomen, government employees,
retirees, mid-life crazies, 18 year olds, 65 year olds.
There is no "typical" Harley owner just like there is no "typical
motorcyclist.

I would bet money that when this economic slump is done, H-D will come
out of it as strong as any company in the vehicle business.

--
Bob Mann

Cap'n, ah need moor pow'r.

 On Fri, 03 Apr 2009 03:31:52 +0000, Bob Mann wrote:


... which may not be saying much.

--
.. Be Seeing You,
.. Chuck Rhode, Sheboygan, WI, USA
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