The results of a study conducted by the firm of Robert W. Baird and Company with 64 Harley dealerships show that 2/3 of them think that their inventories are too low and that it hurts sales. The positive side of the story is that prices of the new motorcycles are firming, protecting Harley brand value, helping the dealer and the finance division make more profit.
Surprisingly, 42% of the dealers surveyed stated that they were selling bikes at or above the suggested retail price. On the other end of the spectrum, some dealers still have a lot of 2010 models on the show floor. In this actual uncertain economic context, Harley-Davidson will probably continue to prefer tight production over the risk of over-production. Harley dealers are learning how to trade inventory with each other, a daily practice in the car industry. (picture courtesy HD Orlando)