What I Would Do If I Owned Harley-Davidson
28/08/08 20:37 Filed in: What I Think
I was thinking today what I would do if I owned Harley-Davidson. Well first I would get a new bike to ride. (Hey, you would too!) But then I would start to strategize the best way to grow my company and maximize profits. I mean, really, I am a capitalist at heart so growth and profit would be a goal.
First, I would have bought Indian the last time it went into bankruptcy. That way, it would not rear its ugly head again in the future. Heck, I would have bought it if I was Honda too.
The Indian purchase would be interesting. I could introduce small, entry-level bikes to compete against the Honda's and Yamaha's while still protecting my HD branded products. HD tries to do this with their Sportster line, and while I like the new Sportsters, it seems most Sportster owners end up trading up within a few years. You can always find used Sportsters for sale. An entry level bike at $9,000 seems stiff anyways. And I would guess that the profit margin on a Sportster is less than it is on a Dyna, Heritage or Fat Boy model. The Indian purchase would have its possibilities while also eliminating a historic rival.
Secondly, I would work with my dealers on maximizing their profits by STOCKING product. There is nothing more irritating than to need or want a new part for my hog and go to my local dealer only to find out he doesn't stock it. I am talking high profit, straight-out-of-the-catalog, chrome accessories. I want it now and don't want to wait a week till he orders it and gets it in. I would venture to say that Harley dealers are making 50% minimum on parts. With that profit margin, they can afford to stock parts.
Lastly, many dealers do a poor job of understanding aftermarket sales. It seems that they want you to buy the bike and get you out the door as fast as possible. When I bought my hog, they did not introduce me to the service manager or parts manager. Don't they realize that there is A LOT of profit AFTER the sale of the motorcycle? Some dealers need training on understanding aftermarket sales and service. By the way, I always bought my parts and had my bike serviced at a different dealer than the one I bought it from. Any Harley owner knows that the HD logo outside a dealer means "Hundred Dollars".
Lastly, I would give an Air Shammy motorcycle dryer away with every bike purchase.
There, now you got my two cents on improving Harley Davidson.
First, I would have bought Indian the last time it went into bankruptcy. That way, it would not rear its ugly head again in the future. Heck, I would have bought it if I was Honda too.
The Indian purchase would be interesting. I could introduce small, entry-level bikes to compete against the Honda's and Yamaha's while still protecting my HD branded products. HD tries to do this with their Sportster line, and while I like the new Sportsters, it seems most Sportster owners end up trading up within a few years. You can always find used Sportsters for sale. An entry level bike at $9,000 seems stiff anyways. And I would guess that the profit margin on a Sportster is less than it is on a Dyna, Heritage or Fat Boy model. The Indian purchase would have its possibilities while also eliminating a historic rival.
Secondly, I would work with my dealers on maximizing their profits by STOCKING product. There is nothing more irritating than to need or want a new part for my hog and go to my local dealer only to find out he doesn't stock it. I am talking high profit, straight-out-of-the-catalog, chrome accessories. I want it now and don't want to wait a week till he orders it and gets it in. I would venture to say that Harley dealers are making 50% minimum on parts. With that profit margin, they can afford to stock parts.
Lastly, many dealers do a poor job of understanding aftermarket sales. It seems that they want you to buy the bike and get you out the door as fast as possible. When I bought my hog, they did not introduce me to the service manager or parts manager. Don't they realize that there is A LOT of profit AFTER the sale of the motorcycle? Some dealers need training on understanding aftermarket sales and service. By the way, I always bought my parts and had my bike serviced at a different dealer than the one I bought it from. Any Harley owner knows that the HD logo outside a dealer means "Hundred Dollars".
Lastly, I would give an Air Shammy motorcycle dryer away with every bike purchase.
There, now you got my two cents on improving Harley Davidson.