Real estate is down, the stock market is still doing pretty good but American consumers are spending less on cars, motorcycles & ATV’s. We all know that Harley-Davidson sales have slowed down and because the 2008 product lineup is going to be announced in July struggling dealers are trying to clean out the 2007 inventory. Most of the bikes on the floor are now selling below MSRP and incentives offered by dealers include $ 0.00 down and 2.99% financing. All this is creating an unhealthy discount war between dealers. In this buyer’s market, speculation is high about what bikes or model makeovers Harley will introduce for 2008. Rumors include the possibility of a V-Rod touring bike, a chopper-style motorcycle, a sport bike and a 3-wheeler (Harley recently filed for a patent for a Bombardier Spyder style bike with two wheels in the front and one in the back). Of course, I will keep you posted.
I feel that Harley would do a lot better if they would choose to offer bikes at a different and lower price point.
The Motor Company is capable of doing this based upon their foreign manufacturing capabilities. It has been proven by other brands that they could even do some of the manufacturing in the USA and make a more competitively priced motorcycle.
This particular strategy of offering a bare bones bike would also open the market for riders that would want a second or third bike that they could modify and accessorize as they see fit.
Profits for the Motor Company are heavily driven by clothing, parts and accessories. Profits for the dealerships have the added dimension of monies generated by the shop.
A line of bikes such as this would help increase sales in an economy that we have.
FROM RESEARCH AND ANALYSIS OF THE MARKET IT CAN BE SAID THAT THERE ABOUT 2 MILLION USED CRUISERS OF THE THE HARLEY-DAVIDSON MARQEE. COULD IT BE THAT THESE USED BIKES ARE COMPETING FOR DEALERS’ NEW SALES? THAT IS A LOT OF USED BIKES OF A POPULAR TYPE
SOME INDUSTRY PEROPLE ARE SAYING THAT THERE IS A CONFUSION BETWEEN TOURING AND CRUISER TYPE BIKES ALSO OF A HARLEY-DAVIDSON MARQE. THAT IS SOME BIKES OLD AS CRUISERS ARE REALLY TOURING TOURING BIKES AND VICE VERSA. I DON’T SEE THIS AS A PROBLEM BUT MOST BUY A BIKE BECAUSE OF THE WAY IT LOOKS OR IF THEY KNOW THEY TYPE. BUT WHEN RESEARCHING THE MARKET COULD THIS BE A PROBLEM?
I am a new Harley-Davidson potential customer. For 15 years I refused to buy a Harley because I refuse to pay over or near MSRP for these bikes. Now they are discounting them 10 to 15%. I can buy a NEW 2007 Street Bob that lists for about $13,595 for under $12,000. What really is sad is so many people that just in months and years pass paid MSRP and over and now think their bike is worth so darn much. I talked to a guy with a new 2007 Street Bob and he wants $13,800 for it, just 300 miles on it. I tried to tell him I could buy a brand new one from the dealer for under $12,000 and he just had this vacant look in his eyes like he did not get it. He cut $600 off his price! WHOOPPEEEE! You are gonna sit on it buddy like tens of thousands of people that are now trying to sell bikes they PAID TOO MUCH FOR just months ago!
They cut prices big time on the 2008’s. As an example, the Super Glide Custom was cut $2,000.
Sure glad I don’t have a used Harley now.
Three weeks after purchasing a new 2007 FXDC Dyna Super Glide Custom they drop the MSRP by 1,650.00. Either the dealer is lying, or Harley home office didn’t release the pricing line up until it was too late for me.
Talking to the Harley home office all they can say is – NOTHING. Well, short of saying it would have been suicide to tell anyone while there was still 2007 inventory on the dealers floor and in the factory.
What are they planning to do with this inventory? A newer motorcycle cost 1,650.00 less, wouldn’t they have to take more then that off the 2007 model in order to get rid of them?
Of course I suspect there will be some significant deals to be made on those remaining few older models, which won’t be extended to other loyal Harley owners, new or old.
It’s just a good thing I love my bike. Now will I have to reconsider buying the wife her bike next year. Not likely to be a Harley regardless of how much I like the bike, but I won’t support the company who has no care, concern, or respect for yesterdays client.
Of course there is an alternative. Having purchased the GAP insurance, if the bike was totaled or stolen today I would get 100% of my money back. It’s a good think I love my bike.
The Fool
The problem is that people that have been buying harley-davidson motorcycles as a status symbol…like purchasing/owning other designer labeled items. These people are not riders or will become riders. The marketing approach/research did for the company as exactly what attracted the kind of person to purchased one. The people attracted were at an young age that was around the easy rider movie late 60’s and into 70’s. As these people came of age thru their successful carreer years, they came to afford to live the fantasy of being the Captain America by buying the New Harley, not to build or to work on one. Those successful years were 1988 to 1998 years for those people. Those people are now retiring, they have lived the fanatasy. These people were never riders. The Harley was just a conversation piece parked in the designer garage when gossiping at a cocktail party and bragging about their Harley-Davidson stock..that Wall Street Darling of the 80’s and 90’s. The stock owners bought more cycles because the stock allowed them to purchase another..stock money not their money.
Harley-Davidson has been againist the aftermarket part producers and now have sided with the EPA to limit and restrict the custom motorcyle sector. Harley-Davidson wants it all.
What Harley-Davidson has forgotten that the working class person was the one who bought their cycles in the begining to ride and customized them to personalize. That is what attracted people to own a harley-davidson. That is was all they had for transportation.
When you look at minimum wage today and what the average working class person gets paid vs the cost of living, a Harley-Davdison motorcycle is way overpriced in comparsion to many other practical items like a simple car for transportation.
The fad is over for all the Wantabes and the Johnny Come latelys.
The young people have watched enough TV shows…how to build a chopper or a custom. Cheaper to buy an import tuner car or a japanese cycle that has more horse power and looks than an Ole’ harley. Harley-Davidon design group tried very hard to find a young person cycle the V-rod and the Buell. They missed it. Traditonal Harley guys are a dying breed. The Harley-Davidson motorcyle has no buyers, the working class person..the cost of living has stripped him of once a affordable item which is now such an expensive luxury.
Look at all the clone cycle manufactures that have come and gone. I’ll start the list you can finish it.
Titan, CMC, IMC, Excelsior-Henderson, Indian, American Eagle, BRM,
Panzer..on an on an on.
Don’t get me wrong, I think that Harley-Davidson motorcycles are one of the best. My first harley was a 1955 Panhead, paid $200 for it in 1968. Minimum wage was $.75 then. Todays M wage is $7-8. 10 times more to today then then. Can you buy a used BT Harley-Davidson 13-15 year old for $2000-$3000 today? Nope..New super glide in 1975 $2550-$2750. I have owned 10-11 other used harleys prior to paying cash for a one new Harley-davidson a 1998 Dyna superglide. Put 75 mile on it and then sold it. I’d rather have the cash.
Inflation or is it over pricing due to supply and demand?? Who knows for sure. Or is it just corporate greed..send the jobs over seas for cheap to make more money and limit the money to circulate in the USA for US buyers to afford the product. All corporations are doing..they forget whoi is really taking care of thei needs.
WOW, I quess I need to shout out as well. I have a 2001 Ultra Classic with 31,000 miles on it. I had it up on my stand after doing some work. I started it up and watched my drive belt shoot down my driveway. I was going to complain to Harley, but I was told that it would fall on deaf ears. I think it is terrible to have 31k miles on a bike and then pay 700.00 to get it up and running.
After the Canada trip, two of my riding buddies decided to swap their Sportsters for Bagers.
Instead of going to the dealer they both got low mileage late model salvage jobs and fixed them at home.
After 4 weeks of Internet parts hunting both bikes are up and running. And look great!
Neither bike ended up over $11k
Spacey, you’re complaining about spitting a 30k mile belt. Man, that’s the line. It did it’s job and got done. Be happy it happened on the lift. Get rid of the belt and put a chain on that can be serviced without tearing the tail off the bike. Victory figured out the belt thing. Put it outside the swingarm so you can change it out without dismembering your motorcycle plus fit a fat tire if you are so disposed.
I ride an Indian. Been a HD man for 30 years plus. Couldn’t stomach the boutique crap no more. FWIW, Indian went to the bottlecap mill, a visual work of art, and calling it a clone is like calling Harleys clones because Indian marketed V twins before HD. Then they went belly up and I have done just fine for four years keeping mine running without a stinking factory. Enough defending my ride.
HD made a long term strategic decision to market to the kind of people that buy motorcycles to accent their leather and lace fashion sense. It worked, it worked something wikid. The stock has split so many times I woulda been a whole lot better off buying the paper instead of the machines.
But that well has run dry and the market is looking for the next new thing. VRods tried. It failed. HD is stuck with thumpers as their flagship and they have saturated a shrinking market with them.
Now those of us that actually put our knees in the breeze stand to reap big bonus over the next few years. HD hit the motherlode with their target demographic in the 90’s. Now, new millenium and they haven’t been able to figure out the new American buyer. Overseas sales will float the boat for what, a decade maybe? In the meantime over here they have to sell to the market they have. I submit that market isn’t much interested in the doodads and fluff. The remaining market will want quality aircooled motorcycles at a pricepoint that is reasonable and the remaining market has a long memory for how Milwaukee kicked them to the curb in favor of lawyers on motorcycles.
The used market is flooded and the price for four or five year old product is somewhere around thirty percent cheaper than just five years ago.
Well well well. Looks like the motor factory has to wake up in the morning and roll over to see a bunch of bona fide riders staring back at them. If it wants our money it’s going top have to dance for us.
Oh yeah.